Budget Planner
Create a monthly budget, track income vs expenses, and see where your money goes.
Monthly Budget Breakdown
💵 Monthly Income
Total Monthly Income
£2,500
💸 Monthly Expenses
Total Monthly Expenses
£1,920
Monthly Balance
+£580
+23.2% of income
Savings Rate
8.0%
Expense Ratio
76.8%
Expense Breakdown
- Rent/Mortgage
- Utilities & Bills
- Food & Groceries
- Transport
- Entertainment
- Shopping
- Savings
- Other
Category Spending
Budget Analysis
Essential Spending
£1,370
54.8% of income
Discretionary Spending
£250
10.0% of income
Savings Rate
£200
8.0% of income (target: 20%)
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The 50/30/20 Rule, Explained
The 50/30/20 rule is a simple starting point for splitting your take-home pay: 50% on needs (rent, bills, groceries, transport), 30% on wants (dining out, entertainment, hobbies), and 20% on savings and debt repayment. It's a guideline, not a rigid rule, high-cost-of-living areas often need to flex the "needs" percentage higher.
Recommended Spending Limits by Category
| Category | Recommended Limit |
|---|---|
| Housing (rent/mortgage) | ≤ 30% of take-home pay |
| Transport | ≤ 15% |
| Food & groceries | ≤ 12% |
| Savings & debt repayment | ≥ 20% |
What to Do When Your Budget Doesn't Balance
If expenses exceed income, tackle discretionary spending first (entertainment, shopping, subscriptions) before touching essentials. Cancel unused subscriptions, negotiate bills like broadband or insurance at renewal, and use the 24-hour rule on non-essential purchases over £50 to reduce impulse spending. If housing costs alone push you over budget, it may be worth exploring whether a cheaper property, a lodger, or relocating is realistic.
Worked Example: £2,400 Take-Home Pay
On £2,400 a month, the 50/30/20 split gives £1,200 for needs, £720 for wants and £480 for savings and debt. Now suppose rent, bills, food and transport actually come to £1,400, which is 58% of your pay. Rather than give up on saving, flex the other two buckets: cut wants to £600 (25%) and put £400 (about 17%) towards savings. The total still adds up to £2,400, and you are still saving every month. As your income grows or your needs shrink, move the savings share back towards 20%.
Tips for Sticking to a Budget
Move savings out on payday so you never see the money, rather than saving whatever is left. Review the budget once a month for the first three months, because your first draft will miss things like annual insurance, gifts and car servicing. Divide those yearly costs by twelve and include them as monthly lines.
Frequently Asked Questions
Should I budget with gross or take-home pay?
Take-home pay, after tax, National Insurance, pension and student loan. That is the money you can actually spend.
Where do debt repayments go?
Minimum payments are a need. Extra payments above the minimum count towards the savings and debt share.
What if my income changes every month?
Budget from your lowest typical month and treat anything above that as a bonus to put into savings or an emergency fund.
Is my data stored anywhere?
The calculations run in your browser. Nothing you enter into the planner is sent to us unless you choose to save it while signed in.
⚠️ Important Disclaimer
This planner is for illustrative and educational purposes only and does not constitute financial advice. Your figures are calculated locally in your browser and not stored.
Frequently Asked Questions
What's the 50/30/20 rule?
A budgeting guideline: 50% needs (rent, food, bills), 30% wants (entertainment, dining out), 20% savings and debt repayment.
How much should I spend on rent?
Financial experts recommend spending no more than 30-35% of your take-home income on rent or mortgage payments.
What if I'm overspending?
Track expenses for a month, identify non-essential spending you can reduce, and consider the 24-hour rule before discretionary purchases.
Key Terms Explained
Plain-English definitions of the financial terms used in this calculator.
- Gross vs Net Income
- Gross income is your pay before deductions; net (take-home) pay is what lands in your bank after income tax, National Insurance, pension contributions and student loan repayments.
- Emergency Fund
- A cash buffer, typically 3 to 6 months of essential outgoings, kept in an easy-access account to cover job loss, repairs or unexpected bills without borrowing.
- Budget
- A plan for allocating income across essentials, savings and discretionary spending. Popular frameworks include 50/30/20, 50% needs, 30% wants, 20% savings and debt repayment.
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Not Financial Advice: This calculator is for informational and educational purposes only. Results are estimates and do not constitute financial advice, recommendations, or regulated advice. We are not authorised or regulated by the Financial Conduct Authority (FCA). Always consult a qualified financial adviser for personalised advice. Tax treatment depends on your individual circumstances and may change. Tax laws and rates may change. Past performance does not guarantee future results.
