Precision Utility
UK Budget
Calculator
Strategy
50/30/20 Rule
UK Avg Income
£35,000
Map out your monthly spending in seconds. Enter your take-home income and each expense category — the calculator shows your remaining balance, savings rate and overall budget health. Built around the 50/30/20 framework and tailored for UK households.
Monthly Budget
Remaining Balance
£650
Total Expenses
£1,850
Savings Rate
8.0%
Budget Health
Healthy
Total Income
£2,500
Total Expenses
£1,850
Remaining
£650
Savings Rate
8.0%
How the budget calculator works
Start by entering your monthly take-home income — that's the amount that actually lands in your bank account after tax and National Insurance. If you're unsure, run your salary through our salary calculator first.
Next, fill in each spending category. Housing covers rent or mortgage payments. Bills includes council tax, energy, broadband and insurance. Food is your weekly shop and any regular meal spending. Transport covers fuel, public transport or car finance. Entertainment is everything discretionary — subscriptions, dining out, hobbies.
The calculator totals your outgoings, subtracts them from your income and shows the remaining balance. It also calculates your savings rate (savings as a percentage of income) and gives you a budget health score so you can see at a glance whether your spending is sustainable.
Open the breakdown section to see exactly how each category stacks up as a share of your income. This makes it easy to spot where you might be overspending relative to guidelines like the 50/30/20 rule.
What you need to know about budgeting
The 50/30/20 rule is the most widely recommended budgeting framework. It splits your after-tax income into three buckets:
- 50% Needs — housing, bills, food, transport, minimum debt repayments
- 30% Wants — entertainment, dining out, subscriptions, holidays
- 20% Savings — emergency fund, pension top-ups, ISAs, investments
According to the ONS, the average UK household spends around £2,700 per month. Housing is typically the largest single expense, followed by transport and food. Energy costs have risen sharply in recent years, making it more important than ever to track utility spending.
Financial advisers recommend building an emergency fund covering 3 to 6 months of essential expenses before focusing on investing. Keep this in an easy-access savings account so you can reach it quickly if needed.
If your remaining balance is negative, look for categories where you can cut back. Even small reductions — switching energy provider, meal planning, cancelling unused subscriptions — can free up meaningful cash each month.
Frequently asked questions
What is the 50/30/20 budget rule?
The 50/30/20 rule suggests spending 50% of your after-tax income on needs (housing, bills, food), 30% on wants (entertainment, dining out) and 20% on savings or debt repayment. It's a simple framework to keep your finances balanced.
How much should I spend on rent or mortgage in the UK?
A common guideline is to keep housing costs below 30% of your take-home pay. In expensive areas like London this can be difficult, so adjust other categories to compensate and protect your savings rate.
What is a good savings rate?
Aim for at least 20% of your take-home pay. Even 10% is a solid start if you're on a tight budget. The key is consistency — regular saving builds an emergency fund and long-term wealth over time.
How much should I have in an emergency fund?
Most financial advisers recommend 3 to 6 months' worth of essential expenses. If your monthly essentials total £1,500, aim for £4,500 to £9,000 in an easy-access savings account before investing elsewhere.
How do I reduce my monthly expenses?
Start by tracking every pound for a month. Switch energy and broadband providers, meal plan to cut food waste, cancel unused subscriptions and use cashback or loyalty schemes. Small changes across several categories add up quickly.
Should I budget weekly or monthly?
Monthly budgeting works best for most people because bills like rent, council tax and subscriptions are charged monthly. If you're paid weekly, multiply by 4.33 to get your monthly figure and use this calculator to plan accordingly.