The 50/30/20 rule
A simple way to budget your in-hand pay: 50% for needs (rent or home EMI, groceries, bills, insurance, school fees, commute), 30% for wants (eating out, shopping, trips, subscriptions) and 20% for savings (SIPs, PPF, an emergency fund, extra loan repayments). Start with your income after tax and PF; the salary calculator works it out from your CTC and links back here.
Making it work in India
- In big cities, needs often go above 50% because of rent. Then keep savings at 20% and cut wants, rather than the other way round.
- Save first. Set SIPs for a day or two after salary day, so the 20% leaves before it can be spent.
- Build an emergency fund before investing for the long term: several months of needs, kept somewhere you can reach quickly.
- Count EMIs as needs. If they take more than about 40% of your pay, paying them down is part of your savings plan.
The calculator splits your spending the same way the Welthr expense tracker does: needs and wants are what you spend, and savings is whatever is left of your income.
Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer. Written by the Welthr team; last reviewed on .