Monthly Budget Calculator
Build a clear monthly budget in minutes. Enter your income and spending to instantly see your surplus or shortfall, plus how your money splits across needs, wants and savings.
Monthly budget calculator
All figures monthly. See your surplus or shortfall instantly.
For free, impartial money help, see the government-backed MoneyHelper.
How to build a monthly budget
A budget is simply a comparison of the money coming in against the money going out each month. When you write it all down, two things usually happen: you spot spending you had forgotten about, and you find room to save. This calculator totals your income and expenses and shows whether you finish the month in surplus (money left over) or deficit (spending more than you earn).
The popular 50/30/20 rule suggests spending about 50% of take-home pay on needs (rent, bills, food, transport), 30% on wants (lifestyle and treats), and 20% on savings and debt repayment. It's a guide, not a rule — but a useful sanity check.
The 50/30/20 budgeting method
Created as a simple framework for ordinary households, the 50/30/20 split keeps budgeting manageable without tracking every penny:
- 50% needs — the essentials you can't avoid: housing, utilities, groceries, minimum debt payments and transport to work.
- 30% wants — the discretionary things that make life enjoyable: eating out, subscriptions, hobbies and holidays.
- 20% future — building an emergency fund, overpaying debt and saving or investing for goals.
Our calculator shows how your real numbers compare to this benchmark so you can rebalance if one category has crept too high.
What to do with a surplus — or a shortfall
If you have a surplus, the highest-value moves are usually building a three-to-six month emergency fund, then clearing expensive debt (credit cards, overdrafts), then saving toward goals. If you're in deficit, focus on the largest, most flexible categories first — switching bills, reviewing subscriptions, and checking you're claiming every benefit you're entitled to with our Universal Credit calculator.
Free help. If money is tight, the government-backed MoneyHelper service and charities like StepChange offer free, confidential budgeting and debt advice.
Frequently asked questions
What is the 50/30/20 budget rule?
It's a simple guideline: spend around 50% of take-home pay on needs, 30% on wants, and put 20% toward savings and debt repayment. The calculator shows how your spending compares.
How do I work out my monthly budget?
Add up all your monthly income, then total your spending across housing, bills, food, transport, debt and lifestyle. Subtract spending from income to find your surplus or shortfall.
What should I do if I'm spending more than I earn?
Tackle the biggest flexible costs first — review bills and subscriptions, build a small buffer, and make sure you're claiming all the benefits you're entitled to. Free help is available from MoneyHelper and StepChange.
How much should I save each month?
A common target is 20% of take-home pay, but even a small, consistent amount helps. Prioritise an emergency fund of three to six months' essential spending before longer-term goals.
Does this budget include benefits?
Yes — enter your total monthly income including any benefits in the income box, so your budget reflects all the money you actually receive.