Monthly Budget Calculator
Plan your monthly budget by allocating your income across different spending categories. Our calculator helps you create a balanced budget based on recommended financial guidelines.
Understanding Monthly Budgeting
A monthly budget is a financial plan that allocates your income to various expense categories, helping you track spending, increase savings, and achieve financial goals. Creating and following a budget is fundamental to financial wellness and long-term stability.
Key Benefits of Monthly Budgeting
A budget helps you understand exactly where your money goes each month, making you more conscious of your spending habits and identifying areas for improvement.
By allocating funds specifically for debt repayment, you can create a structured plan to systematically reduce and eventually eliminate high-interest debts.
Regular budgeting encourages building an emergency fund that can sustain you for 3-6 months in case of unexpected events like job loss or medical emergencies.
A well-structured budget helps you save for specific short and long-term goals, from vacations to retirement, by allocating funds consistently over time.
Popular Budgeting Methods
One of the most popular budgeting approaches is the 50/30/20 rule:
50% - Needs
Essential expenses including housing, utilities, food, transportation, healthcare, and minimum debt payments.
30% - Wants
Non-essential expenses like dining out, entertainment, shopping, subscriptions, and other lifestyle choices.
20% - Savings
Retirement contributions, emergency funds, debt repayment beyond minimums, and investments for future goals.
This method assigns every rupee of your income a specific purpose, resulting in zero rupees left unallocated. The principle is "income minus expenses equals zero." Every rupee must be assigned to expenses, debt payments, or savings categories.
Traditionally, this involved placing cash for different spending categories in labeled envelopes. Once an envelope is empty, you can't spend more in that category until the next budget period. Today, many banking apps offer virtual "envelope" features for the same purpose.
Sample Budget Examples
Monthly Income
₹30.00K
₹4.50K(15%)
₹9.00K(30%)
₹4.50K(15%)
₹3.60K(12%)
₹1.80K(6%)
₹1.50K(5%)
₹2.10K(7%)
₹900.00(3%)
₹2.10K(7%)
Monthly Income
₹60.00K
₹12.00K(20%)
₹18.00K(30%)
₹7.20K(12%)
₹6.60K(11%)
₹3.60K(6%)
₹3.00K(5%)
₹4.20K(7%)
₹2.40K(4%)
₹3.00K(5%)
Monthly Income
₹1.20L
₹30.00K(25%)
₹36.00K(30%)
₹14.40K(12%)
₹13.20K(11%)
₹6.00K(5%)
₹6.00K(5%)
₹6.00K(5%)
₹6.00K(5%)
₹8.40K(7%)
Important Financial Rules of Thumb
Allocate 50% of income to needs, 30% to wants, and 20% to savings and debt repayment.
Maintain 3-6 months of essential expenses in an easily accessible account for emergencies.
Housing expenses should ideally not exceed 30% of your monthly income.
Keep total monthly debt payments below 36% of your gross monthly income.
Save at least 15-20% of your income for long-term goals and retirement.
Frequently Asked Questions About Budgeting
Key Takeaways for Successful Budgeting
Creating and maintaining a monthly budget is essential for financial health and achieving long-term goals. Remember these key principles:
- Be realistic with your budget to increase the likelihood of sticking to it
- Track your expenses consistently to identify spending patterns
- Build an emergency fund before focusing on other financial goals
- Adjust your budget regularly as your financial situation evolves
- Balance necessary expenses with saving for the future
- Automate savings and bill payments to reduce the chance of missing them
- Include occasional treats and small luxuries to make your budget sustainable
This Monthly Budget Calculator and guide is designed to provide general information and education on budgeting. The recommendations provided are based on typical financial guidelines and may not account for your unique circumstances. For personalized financial advice, please consult with a qualified financial advisor.