Monthly budget calculator: how should you split your salary?
The 50/30/20 rule splits your monthly take-home pay three ways: up to 50% on needs, up to 30% on wants, and at least 20% saved or invested. On a take-home of ₹1,00,000, that is ₹50,000 for needs, ₹30,000 for wants and ₹20,000 for savings.
This calculator checks your own month against that split and tells you which part is off and by how much. It uses the same rules as the budget and expense tracker inside Map My Risk, where you can log every expense and see each month as it happens.
Your figures stay in your browser. Nothing is sent anywhere until you choose to start the full assessment.
Open the calculator to work out your own figure.
How the number is worked out
- Start from take-home pay: your salary after income tax, provident fund and other deductions, the amount that actually reaches your account each month.
- Needs, up to 50%: rent or home loan EMI, other EMIs, groceries, utilities, school fees, insurance premiums and travel to work. The things you must pay whatever happens.
- Wants, up to 30%: eating out, shopping, holidays, subscriptions and anything else you could cut in a hard month.
- Savings, at least 20%: SIPs, PPF, recurring deposits, your emergency fund and extra loan prepayments.
- Then the month is judged in this order. Spending more than you earn, or saving nothing, needs attention. Saving 25% or more with needs within 50% is excellent. Saving 20% or more is healthy, and so is 10% to 20% if needs and wants are both within their limits. Anything else needs attention.
A worked example
Rohan and Priya take home ₹1,20,000 a month. Rent, their car EMI, groceries, utilities and school fees come to ₹68,000; eating out, shopping and subscriptions ₹30,000; and their SIPs ₹22,000.
Needs take 57% of their pay, above the 50% guideline, and they save 18%. The verdict is "Needs Attention": saving 18% of income — the guideline is 20%. Moving ₹2,000 a month from wants to their SIP takes savings to 20%, and the month becomes "Healthy".
| Take-home pay | ₹1,20,000 |
| Needs (limit ₹60,000) | ₹68,000 · Above Budget |
| Wants (limit ₹36,000) | ₹30,000 · Within Budget |
| Savings (target ₹24,000) | ₹22,000 · Below Budget |
| This month | Needs Attention |
| After moving ₹2,000 to savings | Healthy |
Assumptions
- 50/30/20 is a guideline, not a law. In a high-rent city your needs may run above 50%; the calculator says so plainly, and the fix is usually in wants rather than savings.
- Every EMI counts as a need, because it has to be paid. If a loan paid for a want, the lesson is not to add another.
- Provident fund taken from your salary before it reaches you is not part of take-home pay, so it is not counted as savings here. Count only what you set aside from take-home.
- The figures are monthly. Spread yearly costs such as insurance premiums or school fees over twelve months.
Frequently asked questions
What is the 50/30/20 rule?
A simple way to split take-home pay: up to 50% on needs, up to 30% on wants and at least 20% on savings and investments. It gives every rupee a job without tracking dozens of categories.
Is the 50/30/20 rule realistic in India?
Often not in the first years in a big city, where rent and EMIs can take more than half of take-home pay. Keep the savings target and squeeze wants first. If needs stay above half for long, the lasting fixes are a cheaper home, prepaying a loan, or a higher income.
Should EMIs count as needs or wants?
Needs. An EMI has to be paid every month whatever happens, so it belongs with rent and groceries. A car or phone bought on EMI may have been a want, which is a good reason to think hard before the next one.
How much of my salary should I save?
At least 20% of take-home pay, and 25% or more if you can while keeping needs within half. Start with an emergency fund of six months of expenses, then long-term investments such as SIPs and PPF.
How do I track my monthly expenses?
In the Map My Risk budget tracker, add each regular expense once as a need, want or saving, with the months it runs for. Auto-debits count every month on their own; manual payments are confirmed as you pay them. Day-to-day spends are logged as they happen and grouped by day, so you can see each month take shape.