**80/20 Budget Calculator**

**80/20 Budget Calculator**

80/20 Budget Calculator is an online finance tool which helps you to calculate your monthly budget on the basis of 80/20 budget rule.

You have to enter your monthly income in the calculator, then this program automatically calculates the savings (20%) and expenses (80%) part from your monthly income.

**What is an 80/20 Budget?**

The 80/20 rule says you should first set aside 20% of your net income for savings and debt payments. The remaining 80% of the money is for spending (needs and wants).

**How to Calculate an 80/20 Budget?**

To calculate the 80/20 budget, follow these steps:

1. Divide your take-home monthly income into two parts:-

2. First, calculate the 20% of your monthly salary, this should be used in your savings and debt repayment.

3. The leftover 80% is used for all of your needs.

**Example 1:** Calculate the 80/20 budget of John whose monthly income is $1200.

John Monthly Income = $1200

According to the 80/20 budget rule:

Savings = 20% of Monthly Income = 20% of $1200

Expenses = 80% of Monthly Income = 80% of $1200

Therefore, **John Savings (20%) = $240** and **John Expenses (80%) = $960**.