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Household Bills & Lifestyle2 min check

Household Budget Planner

A simple monthly budget using the popular 50/30/20 rule — 50% needs, 30% wants, 20% savings.

Short answer

The 50/30/20 rule splits your take-home pay into 50% essentials (rent/mortgage, bills, food, transport), 30% lifestyle (eating out, hobbies) and 20% savings & debt repayment. We compare your actual spend to those targets.
Step 1 of 40%

Monthly income

Calculation method, coverage and version

Inputs used
Monthly take-home pay (£), Other monthly income — partner, benefits etc. (£), Rent or mortgage (£), Council tax (£), Energy & water (£), Broadband & phones (£), Groceries (£), Transport — fuel, season ticket (£), Insurance (home, car, life) (£), Childcare / school (£), Minimum debt repayments (£), Eating out / takeaways (£), Subscriptions — Netflix, gym etc. (£), Hobbies, shopping, holidays /12 (£), Monthly savings & investments (£), Extra debt overpayments (£).
Calculation approach
The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage
Household Bills & Lifestyle. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version
No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.
Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

How it works

We total your inputs into needs, wants and savings, then compare to 50/30/20 of your take-home income. Spare cash = income − every category total.

Worked example

£2,800 income, £1,500 needs (54%), £400 wants (14%), £400 savings (14%) → £500 spare/month. Slightly over on needs, under on wants & savings — could shift £200 from spare to savings.

Who should use this

  • •Anyone setting up a first budget
  • •Couples combining finances
  • •Households squeezed by rising bills

Common mistakes

  • ×Using gross pay instead of take-home
  • ×Forgetting annual costs (car tax, MOT, holidays)
  • ×Treating debt minimums as savings — they aren't
  • ×Setting savings as 'whatever is left' — pay yourself first

Frequently asked questions

Is 50/30/20 realistic in the UK?▾

Tough in London/SE where rent often exceeds 50% alone. Adjust targets — 60/20/20 is common for high cost areas.

What counts as a need?▾

Anything you'd struggle to live without short-term: housing, utilities, basic food, transport to work, insurance, minimum debt.

Should I save or pay off debt first?▾

Build a £1,000 starter emergency fund, then attack high-interest debt (credit cards), then save 3–6 months expenses.

Related calculators

Emergency Fund Calculator →Debt Repayment Calculator →Energy Bill Calculator →Take Home Pay →