How this calculator works

Allocate take-home income among essentials, savings goals, and flexible spending.. Use the money that actually arrives in your account rather than gross salary. If pay changes, estimate from a cautious normal month and treat unusually large months separately. If income is irregular, list bill due dates and protect essentials before assigning money to discretionary categories.

Important assumptions

Rent, insurance and recurring debt payments may be predictable. Food, utilities and transport can vary. Annual premiums, car repairs, school costs and gifts arrive irregularly; divide a realistic annual estimate by twelve and reserve a little each month when possible.

Common mistakes to avoid

  • Mixing units or time periods.
  • Counting the same fee or tax twice.
  • Treating an estimate as a live quote or guarantee.
  • Ignoring maintenance, waste, exceptions or other costs outside the inputs.

Read the related guide

How to Build a Monthly Budget That Survives Real Life →

This calculator is a planning aid. Verify important amounts with the relevant provider or official source.