Healthcare Pro Budget Calculator (50/30/20)

A budget doesn't need to be complicated. The 50/30/20 rule splits your take-home pay into three buckets: needs, wants and savings. This calculator shows your targets, compares them with what you spend now, and tells you your current savings rate.

What this calculator does

Enter your monthly take-home pay, what you spend on needs and wants now, and your target percentages. The calculator shows:

• what's left for savings and extra debt payments now,
• your savings target,
• your needs and wants targets, and
• your savings rate now.

The chart compares your current spending with your targets.

The formula in plain English

Needs target = take-home pay × needs percentage (50% by default).

Wants target = take-home pay × wants percentage (30% by default).

Savings target = take-home pay × whatever is left (20% by default).

Savings now = take-home pay − what you spend on needs − what you spend on wants.

Savings rate = savings now ÷ take-home pay.

A worked example

Sam is a respiratory therapist taking home $6,500 a month. Needs cost $3,600 and wants cost $1,900.

• Needs target: $3,250. Sam is $350 over.
• Wants target: $1,950. Sam is right on target.
• Savings target: $1,300.
• Savings now: $1,000, a 15% savings rate.

To reach 20%, Sam could trim $300 from wants, or lower a need, such as refinancing a car loan or finding a roommate. Even a 15% savings rate is a solid start.

Why it matters at each career stage

If you're: Student

Student budgets are tight and often funded by loans. Every dollar you don't borrow saves interest later. Focus on keeping needs and wants as low as you comfortably can.

If you're: Resident / fellow

Needs often take more than 50% in training. That's okay. Try to save something, even 5%–10%, and avoid adding credit card debt.

If you're: Employed

After training is the best time to set a high savings rate. If you keep your lifestyle close to what it was in training for a few years, you can save 30% or more and pay down loans quickly.

If you're: Practice owner

Business income can vary. Budget on a conservative monthly amount, and put extra income in good months toward savings and a cash reserve.

Making your budget work

Automate savings. Move savings to a separate account on payday, before spending.

Track for a month. If you're not sure where money goes, look at a month of card and bank statements.

Focus on big expenses. Housing, cars and childcare matter more than small daily purchases.

Plan for irregular costs. Car repairs, holidays and licenses come every year. Save a little each month for them.

Review after raises. Decide how much of each raise goes to savings before it reaches your checking account.

Budgeting with shift or variable pay

If your pay changes from month to month because of overtime, per-diem shifts, bonuses or 1099 work, base your budget on your lowest typical month. Treat anything above that as extra and decide in advance where it goes: savings, debt or a specific goal. This keeps your regular spending steady and turns good months into real progress instead of extra spending. A separate savings account for irregular income makes it easy to see what you've set aside.

Adjusting the targets

Some people prefer 60/20/20 in high-cost cities, or 50/20/30 to save more. Change the percentages to fit your goals. What matters most is having a plan and following it.

Next, build an emergency fund, plan your debt payoff, see a detailed resident budget, and read our money stress plan.