What is the 50/30/20 rule?
It's a simple way to split your take-home pay: about 50% for needs, 30% for wants and 20% for savings and paying down debt. It's a starting point, not a test you pass or fail.
Needs
Needs are the bills you'd pay no matter what: rent or mortgage, utilities, groceries, insurance, transportation and minimum debt payments. In expensive areas, housing alone can take 40% or more, which is common and not a personal failing.
Wants
Wants are things you could cut if you had to, like eating out, streaming services and shopping. Trimming wants is usually the fastest way to free up money, and the calculator shows how much cutting them would speed up your goals.
Savings and debt
The last 20% builds your emergency fund, pays debt down faster and grows your savings. If 20% isn't possible yet, start smaller. Even 5% builds the habit.
What about money that comes in uneven amounts?
If your hours change week to week, budget from a lower-than-average month and treat anything above it as extra for savings or debt.
Questions
Is Leftover Planner really free?
Yes, completely. There's no sign-up, subscription or paywall. The site is supported by ads and optional partner offers, so you never pay anything.
Is my information saved or shared?
No. Every number you enter stays in your own browser and is never sent to us or anyone else. "Start fresh" wipes it. If you use "Copy link to plan," your numbers are stored inside the link itself, so anyone you send it to can see them. See our privacy policy for details on ads and cookies.
How accurate is the debt-free date?
It's calculated month by month using each debt's interest rate (APR ÷ 12 each month), so it's a close estimate if you stick to the plan. Many lenders charge interest daily, so real totals can differ by a few dollars. New charges, rate changes and changes to your income will also move it.
What if I'm paid weekly, twice a week or by the hour?
Pick your schedule in step 1 and Leftover Planner converts it to a monthly average using 52 weeks a year. For example, $500 every week is $500 × 52 ÷ 12 = $2,167 a month. You can add more than one income, and bills can be weekly, monthly or yearly too.
Why does it assume 7% for investing?
Broad stock market funds have averaged roughly 7% a year after inflation over long periods, though some years are far worse and some far better. Because it's after inflation, the investment growth you see is in today's dollars, so $100,000 in 10 years means what $100,000 buys now. You can change it in step 4.
Why does the 401(k) match come before paying off debt?
An employer match is money you only get if you contribute. If your job adds 50¢ for every $1 you put in, that's an instant 50% return, which beats the interest on almost any credit card. So once your starter emergency fund is in place, Leftover Planner funds the full match before paying extra on debt. If you already get the full match through payroll, leave the setting off, since it's already taken out of your take-home pay.
Is this financial advice?
No. Leftover Planner is an educational tool that does the math for you. For big decisions, talk to a licensed financial professional.