What is the 50/30/20 rule?
The rule assigns 50% of net income to needs, 30% to wants and 20% to savings. It is an adaptable reference: the Bank of Spain presents it for situations where personal finances allow it.
Source: Bank of Spain: budgeting with a proportional rule · Checked on .
Which income should you enter?
Use monthly money available after taxes and deductions. If your income varies, an average can help compare scenarios, but it is not the money you will receive every month.
Accepts €0 to €1,000,000, with up to two decimal places. A loan or a transfer between your accounts is not new recurring income.
Source: Finanzas para Todos: net income and budgeting · Checked on .
What belongs in needs, wants and savings?
Your usual housing and basic food can be needs; leisure, a want; money set aside for later, savings. Classify each expense by its purpose and your circumstances.
Source: Finanzas para Todos: classifying expenses · Checked on .
What does a worked budget example look like?
With €2,000.00 in monthly net income, the split is €1,000.00 for needs, €600.00 for wants and €400.00 for savings. The table lets you compare other incomes.
| Income | Needs · 50% | Wants · 30% | Savings · 20% |
|---|---|---|---|
| €1,200.00 | €600.00 | €360.00 | €240.00 |
| €2,000.00 | €1,000.00 | €600.00 | €400.00 |
| €3,000.00 | €1,500.00 | €900.00 | €600.00 |
Results use two decimal places. When there are fractions of a cent, remaining cents are allocated so the split adds up to your income.
What if your needs exceed 50%?
If your needs exceed 50%, your budget should reflect that. Compare the amounts with your actual obligations and adjust the reference: the calculation does not require saving 20% when you cannot sustain it.
Source: Bank of Spain: applying the rule when circumstances allow · Checked on .
Which mistakes should you avoid?
Compare the same period, use net income and count each transaction only once. Include a monthly share of annual expenses you have not already counted.
Source: Finanzas para Todos: recording and reviewing a budget · Checked on .
50/30/20 calculator questions
Cases that can change how you interpret the result.
- Do you need an account to use this calculator?
- The calculator is free and requires no signup. Keeping transactions in the Sumant app does require an account.
- Can you use it when your income varies?
- Yes. Calculate each month separately or use a reference you choose. An average does not guarantee future income or cover months when you receive less.
What can you explore after calculating the split?
Choose the calculation or resource that fits your next step.
Would you like to record expenses in Sumant?
Create an account to record income and expenses in Sumant, manually or by importing a file. This calculator scenario is not saved in the app.
Explore expense tracking with Sumant