About the Income & Expenditure Calculator
What is this?
A personal budget is the foundation of financial wellbeing. This calculator helps you compare what you earn against what you spend, revealing whether you are living within your means, building savings, or quietly accumulating debt. The 50/30/20 rule — a popular budgeting framework — suggests allocating 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment.
How it is calculated
Net income is your total take-home pay after taxes and deductions. Total expenditure is the sum of fixed costs (rent, utilities, insurance), variable costs (food, transport, entertainment), and discretionary spending. Your surplus or deficit is simply income minus expenditure. A positive figure means you are saving; a negative one means you are drawing on savings or borrowing.
Reference ranges
Frequently asked questions
What if my needs exceed 50% of income?
In high-cost areas, needs may take 60% or more. Adjust the other categories accordingly and look for ways to increase income or reduce fixed costs over time.
How much should I save each month?
A common guideline is to save at least 20% of after-tax income. If that is not possible, start with whatever you can — even 5% — and increase it as your income grows.
Should I save or pay off debt first?
Pay off high-interest debt (above about 7% APR) first, since it costs more than you would earn from savings. For lower-interest debt, splitting between saving and repayment is sensible.
Income & Expenses
Track your cash flow by adding income sources and expenses. See your net balance at a glance.