Budget calculator
Enter your monthly take-home pay and what you spend, and see how your needs, wants and savings compare with the 50/30/20 rule, and what to adjust.
Free · No sign-up · Updated October 2026
$800a month not yet assigned
- Needs: target $2,500
- $2,900
- Wants: target $1,500
- $600
- Savings and debt: target $1,000
- $700
What to adjust
- Needs are $400 over the 50% target. Housing and transport are usually the biggest levers; if they can’t move, take the difference from wants.
- Savings are $300 short of the 20% target. You have $800 not yet assigned; moving $300 of it to savings closes the gap.
A guideline, not a rule: in high-cost cities needs often take more than half. Nothing you enter leaves your browser. Next step: compare savings accounts for your emergency fund, or no-fee chequing accounts to cut bank fees.
For a more detailed plan, see the Financial Consumer Agency of Canada’s Making a budget guide and free Budget Planner.
How this calculator works
The 50/30/20 guideline
The 50/30/20 rule, commonly credited to Elizabeth Warren and Amelia Warren Tyagi’s 2005 book All Your Worth, splits take-home pay into about 50% for needs, 30% for wants and 20% for savings and extra debt payments.
It’s a starting point, not an official standard. Housing costs vary a lot across Canada, so treat the targets as a reference and adjust them to your situation.
How we do the math
Each target is your monthly take-home pay times 50%, 30% or 20%. Your actual share is each group’s total divided by your take-home pay, and anything you haven’t assigned is shown separately.
Suggestions compare each group with its target in dollars. Money left unassigned is suggested for savings first, because that’s the group the rule protects.
More help from FCAC
The Financial Consumer Agency of Canada’s Making a budget guide, linked below the calculator, explains how to track spending and suggests an emergency fund that covers 3 to 6 months of living expenses. Its free Budget Planner lets you build a more detailed budget.
Everything you enter here stays in your browser, including the CSV download.
Frequently Asked Questions
What is the 50/30/20 rule?
A simple way to split your take-home pay: about 50% for needs, 30% for wants and 20% for savings and paying down debt. It’s a guideline, not an official rule, and it’s commonly credited to the 2005 book All Your Worth by Elizabeth Warren and Amelia Warren Tyagi.
How do I make a budget?
Start with what actually lands in your account each month, then list your regular costs and sort them into needs, wants and savings. Compare the totals with your pay, decide what to change, and check back after a month or two to see how real spending matched the plan. The Financial Consumer Agency of Canada has a free budget planner if you want a more detailed worksheet.
How does the 50/30/20 rule work on $5,000 a month?
On $5,000 of monthly take-home pay, the targets are $2,500 for needs, $1,500 for wants and $1,000 for savings. With the example figures in the calculator, needs come to $2,900, wants $600 and savings $700, leaving $800 unassigned; moving $300 of that to savings closes the savings gap.
Is the 50/30/20 rule based on gross or net income?
Take-home pay, meaning what’s left after income tax, CPP or QPP, EI and other payroll deductions. Workplace pension or RRSP contributions taken off your pay are already savings, so you can count them toward the 20% if you want a fuller picture.
What counts as a need versus a want?
Needs are costs you’d struggle to cut without changing how you live, like housing, utilities, groceries, getting to work, insurance and minimum debt payments. Wants are the extras, like dining out, entertainment, subscriptions and most shopping. Some items are partly both, such as a phone plan, so put the basic cost under needs and any upgrade under wants.
Is the 50/30/20 rule realistic in Canada?
It can be hard in high-cost cities, where rent or a mortgage alone can take more than half of take-home pay. If needs run over 50%, many people trim wants first to protect savings; the calculator shows how far each group is from its target.
Where should my budget savings go?
Many people start with an emergency fund in a high-interest savings account, then move to a TFSA, RRSP or FHSA depending on their goals. Paying extra on high-interest credit card debt also counts toward the 20%.
Do minimum debt payments count as needs or savings?
Minimum payments are needs, because you have to make them. Anything you pay above the minimum goes in savings and debt, since it reduces what you owe faster.
Can I download my budget as a spreadsheet?
Yes. The Download as CSV button saves every line item, each group’s total and target, and your unassigned amount in a file that opens in Excel, Numbers or Google Sheets. It’s created in your browser, so your figures aren’t sent anywhere.
Results are estimates for general information, not financial advice. Confirm rates, fees and terms with your card issuer or bank. See our methodology.