About This Tool
The budget calculator helps you compare your monthly income to your monthly expenses to see if you have a surplus or deficit. It's a straightforward tool for creating a personal budget, whether you're trying to save more, pay down debt, or just get control of your spending. You can categorize expenses like housing, food, transportation, and entertainment. The result shows you exactly where your money is going each month.
How It Works
The calculator sums all sources of monthly income (after-tax) and all monthly expenses across categories. The result is: Surplus/Deficit = Total Income - Total Expenses. A positive number means you have money left over; a negative number means you're spending more than you earn. It doesn't use a complex formula—just addition and subtraction—but the categorization helps identify spending patterns.
Examples
- Monthly income of $4,500 with expenses totaling $3,800 (rent $1,200, food $600, car $400, etc.) leaves a surplus of $700.
- Monthly income of $3,200 with expenses of $3,600 (including $500 in credit card payments) results in a deficit of $400 per month.
Pro Tips
- Be honest and include irregular expenses like annual insurance or car repairs by dividing them by 12.
- Use the 50/30/20 rule as a guideline: 50% needs, 30% wants, 20% savings/debt—compare your budget to this.
- Review your budget monthly and adjust categories as your lifestyle changes—don't set it and forget it.