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Budget Calculator

Calculate your monthly budget and track your income, expenses, and savings to achieve your financial goals.

Income

Enter your total monthly income after taxes
Enter any additional monthly income (side jobs, investments)

Expenses

Rent/mortgage, property taxes, insurance
Electricity, water, gas, internet, phone
Groceries, dining out, coffee shops
Car payments, gas, insurance, public transit
Insurance premiums, prescriptions, co-pays
Clothing, hobbies, entertainment, subscriptions
0% 20% 50%
Credit cards, student loans, other debt payments

How to Use This Calculator

  1. Enter your monthly income and any additional income sources
  2. Input your monthly expenses in each category
  3. Set your savings goal using the slider
  4. Click Calculate Budget to see your financial overview and recommendations

Formula Used

Net Income = Total Income - Total Expenses
Savings Rate = (Net Income / Total Income) × 100%

Where:

  • Total Income = Monthly Income + Additional Income
  • Total Expenses = Sum of all expense categories
  • Net Income = Money left after all expenses are paid
  • Savings Rate = Percentage of income that can be saved

Example Calculation

Real-World Scenario:

Sarah is a 28-year-old professional who wants to create a budget to save for a down payment on a house.

Given:

  • Monthly Income = $4,500
  • Additional Income = $500 (freelance work)
  • Housing = $1,500
  • Utilities = $200
  • Food & Groceries = $600
  • Transportation = $400
  • Healthcare = $250
  • Personal & Entertainment = $300
  • Debt Payments = $350
  • Savings Goal = 20%

Calculation:

Total Income = $4,500 + $500 = $5,000

Total Expenses = $1,500 + $200 + $600 + $400 + $250 + $300 + $350 = $3,600

Net Income = $5,000 - $3,600 = $1,400

Savings Rate = ($1,400 / $5,000) × 100% = 28%

Result: Sarah is saving $1,400 per month, which is 28% of her income, exceeding her 20% savings goal. At this rate, she could save $16,800 in one year toward her house down payment.

Why This Calculation Matters

Practical Applications

  • Planning for major purchases (home, car, education)
  • Building an emergency fund for unexpected expenses
  • Preparing for retirement and long-term financial security
  • Identifying areas where you can reduce spending

Key Benefits

  • Gives you control over your financial future
  • Reduces financial stress and anxiety
  • Helps you achieve financial goals faster
  • Provides a clear picture of your spending habits

Common Mistakes & Tips

Many people underestimate their monthly expenses, especially irregular costs like car maintenance, gifts, or annual subscriptions. Track your spending for at least a month to get accurate figures, and add 10-15% to your expense estimates to account for unexpected costs.

A budget should be a living document that changes as your financial situation changes. Review and adjust your budget at least quarterly, or whenever you experience a significant life change like a new job, move, or change in family status.

While it's good to be ambitious, setting savings goals that are too high can lead to frustration and budget failure. Start with a realistic goal (10-15% of income) and gradually increase it as you adjust your spending habits.

Frequently Asked Questions

Most financial experts recommend saving at least 20% of your income, following the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings and debt repayment. However, the right percentage depends on your income, expenses, and financial goals.

You should review your budget monthly to track your progress and make adjustments. Do a more comprehensive review quarterly or whenever your financial situation changes significantly, such as a raise, job change, or major expense.

If your expenses exceed your income, you need to either increase your income or decrease your expenses. Start by categorizing your expenses as needs and wants, and look for areas to cut back. Consider increasing your income through a side job, asking for a raise, or developing new skills.

References & Disclaimer

Financial Disclaimer

This budget calculator is for educational purposes only and should not be considered financial advice. The calculations are based on the information you provide and are estimates. For personalized financial advice, please consult with a qualified financial professional.

References

Accuracy Notice

This calculator provides estimates based on the information you input. Financial situations vary, and unexpected expenses may arise. Regular monitoring and adjustment of your budget is recommended for the best results. This calculator does not account for tax implications, investment returns, or inflation.

About the Author

Kumaravel Madhavan

Web developer and data researcher creating accurate, easy-to-use calculators across health, finance, education, and construction and more. Works with subject-matter experts to ensure formulas meet trusted standards like WHO, NIH, and ISO.

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finance personal-finance budget money loan investment tax mortgage