Budget Calculator
Create a monthly budget by tracking income and expenses. See your savings rate and category breakdown.
Expenses
Last updated: April 2026
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When to Use This Calculator
A personal budget is the fastest way to find where money actually goes each month, and this calculator structures it around the popular 50/30/20 rule: 50% of income for needs, 30% for wants and 20% for savings. You enter your monthly income and expenses by category, and the tool shows both the totals and how your real spending compares with the recommended split. Salaried employees in India use it after each salary credit to plan rent, EMIs, groceries and SIPs before discretionary spending happens. It is also handy before applying for a loan, because lenders expect a budget, and after a pay revision, when the extra amount should be routed to savings instead of lifestyle inflation. Reviewing the budget at month-end against what was actually spent is what turns the 50/30/20 rule from a plan into a habit. It is also a helpful check before taking a personal loan — the plan shows whether the new EMI fits inside the 50% needs bucket without breaking the month.
How to Use This Calculator
- Step 1: Enter your monthly take-home income in the income field.
- Step 2: Add each expense with a name, amount and category — housing, food, transport, utilities and so on.
- Step 3: Press calculate and read the total expenses, the monthly surplus and the savings rate.
- Step 4: Review the category breakdown to find the biggest line items, then adjust them to raise the surplus.
Worked Example
On a monthly take-home income of ₹85,000, expenses of rent ₹25,000, groceries ₹12,000, transport ₹6,000, an EMI of ₹15,000 and other spending of ₹7,000 total ₹65,000. The surplus is ₹20,000 and the savings rate is about 23.5%. The category breakdown shows housing taking the largest single share at ₹25,000 — the natural first target if the savings rate needs to rise.
Tips and Common Mistakes
- •Tip 1: The 50/30/20 rule — needs, wants and savings — is a common starting target; compare your category shares against it.
- •Tip 2: In India, budgets are usually built on take-home pay net of PF and tax — use that figure as the income, not CTC.
- •Tip 3: Track variable spending such as food delivery, fuel and small UPI payments for a month before fixing the amounts, since estimates drift.
- ✗Mistake 1: Forgetting annual costs like insurance premiums and school fees — convert them to a monthly amount.
- ✗Mistake 2: Entering the same expense twice under different categories, which inflates the total and flattens the savings rate.
Frequently Asked Questions
What is the 50/30/20 rule and does it work in India?
It splits take-home income into 50% needs, 30% wants and 20% savings and investments. In metro cities like Mumbai, Bengaluru or Delhi, rent and EMIs alone often exceed 50%, so many Indians adjust it to 60/20/20 or save whatever is left after fixed costs.
Should I budget on CTC or take-home salary?
Always budget on take-home (net) pay — what reaches your bank after PF, income tax and professional tax. CTC includes employer costs like gratuity that you never see, so budgeting on it inflates every category.
How do I handle expenses that come once a year?
Convert annual costs like insurance premiums, school fees and vehicle renewals into a monthly amount by dividing by 12, and set that aside each month. Otherwise these one-off bills silently blow the budget when they arrive.
What is a healthy savings rate in India?
Financial planners often suggest saving 20% or more of take-home pay, including PF and mutual fund SIPs. If your rate is below 10%, the category breakdown will show the biggest line items — usually rent, food delivery or EMIs — to attack first.
How do I budget with an irregular income?
Use the average of your last 6–12 months of income as the income figure, and build the budget on the lower end of that range. In months you earn more, put the surplus into savings before it gets absorbed into spending.
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