Last updated October 12, 2026 · Report an error
Knowing your savings rate — not just your savings amount — makes it much easier to judge whether your budget is actually on track.
This calculator finds your monthly savings and savings rate from income and expenses, and shows how your spending compares to the 50/30/20 guideline.
How it works
Enter your monthly income and monthly expenses. The calculator subtracts expenses from income to find your savings, divides that by income for your savings rate, and applies the 50/30/20 guideline (50% needs, 30% wants, 20% savings) to your income for reference.
- Enter monthly income ($).
- Enter monthly expenses ($).
- Click Calculate to see your results.
Examples
$5,000 income, $3,800 expenses
With $5,000 monthly income and $3,800 in expenses, you're saving $1,200 per month — a 24% savings rate, close to the 20% guideline reference figure.
Who should use it
- Checking whether your current budget is on track relative to a common guideline.
- Setting a savings goal based on your current income and spending.
Industry applications
- Personal finance and budgeting
- Financial coaching and education
Advantages
- Shows both your actual savings rate and a 50/30/20 reference for comparison.
- Simple two-input calculation with no complex assumptions required.
Limitations
- Doesn't break expenses into needs versus wants automatically — that split has to be estimated separately.
Common mistakes to avoid
- Forgetting to include irregular expenses (annual subscriptions, occasional large purchases) when estimating monthly expenses.
- Treating the 50/30/20 split as a mandatory target rather than a general reference point.
Best practices
- Track actual spending for a month or two before relying on estimated expense figures, since irregular costs are easy to underestimate.
Tips
- If your savings rate is below 20%, look first at your largest recurring expense categories (housing, transportation) rather than small discretionary cuts, since they usually offer the biggest impact.