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Budget Calculator
Creating a budget just got easier! Use our online budget calculator and take control of your spending.
Directions: Enter estimated amounts in all of the fields that apply to you. Round up to the nearest dollar and don't use commas.
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What is a Budget?
A budget is an estimate and planning of income and expenditure, and commonly refers to a methodical plan to spend money a certain way.
Generally, budgets are created to reach certain financial goals, such as paying off several credit cards, reaching a certain savings goal, or getting income and expenses back on track. There are many different reasons why people create budgets and even more ways to go about doing so. While some people may prefer our budget calculator or our free budget template, others may prefer different methods. Modern technology has paved the way for many different budgeting software and apps. They all have their pros and cons, but the one that works best is the one that budgeteers will bother sticking with as best as they can.
How to Budget
Budgeting can generally be summed up by two things: living within your means and planning for the future. Successful budgeting usually involves having a detailed personal budget and adhering to it.
Living Within Your Means
Millennia-old religious teachings, countless online resources, and thousands of financial advisors over time have echoed the principle of living within your means. As simple as it may seem, many struggles to implement it successfully in their lives, like the statistic that eight out of ten Americans are in debt, shows. The reason why people are not able to adhere to the principle is generally due to reasons such as:
Spending more than their income allows—The biggest financial blunder people can make is simply spending more than they earn, which over the long run snowballs into more and more debt.
Trying too hard to keep up with the Joneses—In consumerist societies, conspicuous consumption, defined as the spending of money on, and the acquisition of, luxury goods and services to publicly display economic power, is common.
Overly relying on credit—This borrowed money allows people to live beyond their means temporarily. However, if borrowers are unable to pay back the borrowed money on time, they will probably find themselves in a sticky financial situation.
Lacking knowledge—Not everyone is expected to be an expert on personal finance, and it is very possible that misinformation or lack of awareness can lead to people living outside of their means. As a result, it can be helpful to learn more about personal finance.
Planning for the Future
There is a reason why entire departments exist within many corporations for the sole purpose of budgeting and forecasting, as budgeting and forecasting are very important factors when trying to achieve certain financial goals. This concept applies to individuals as well, as it can be hard to achieve personal financial goals successfully without first planning for them. Proper planning can help predict future financial standing according to best estimate forecasts of income and expenses. Proper planning can also help with:
Mitigating sudden misfortunes (everyone encounters expected and unexpected life events)
Loading up on emergency funds
Weather heavy-debt seasons
Getting ready for the purchase of a new house, car, or other major purchase
Properly managing investments
Preparing for retirement, children, or education
Purchasing appropriate insurance plans
A personal budget can help people live within their means and plan for the future. The Budget Calculator evaluates the components of a personal budget and highlights which specific areas need improvement.
Budget Template
We have created a free, basic, budget template for people who want to start budgeting their personal finances on a month-to-month basis. While it is not the most feature-packed budgeting tool in the world, it was created as a way for people to get motivated and started on their budgeting goals, then eventually move onto more intricate budget-planning tools. It can also serve as a supplementary tool to annualize net income as calculated based off of our Budget Calculator. There is also a computation for annualized expense-to-income ratio. Use our Budget Calculator every month, then update the figures in a saved version of our budget template. The annual net income will update accordingly. Please click here to download our free budget template.
Incomes
Most budgeteers' main source of income will come from their full-time or part-time job in the form of salaries or wages. The second-largest source of income tends to come from investments and capital gains, and there are various other methods of receiving additional income.
Obviously, anyone would most likely want a higher income. Aside from more consumption, conspicuous or otherwise, a higher income allows for more flexibility when it comes to expenses; a month of extreme spending can be quickly rectified by a high enough income. While achieving a higher income is easier said than done, it is generally accomplished through several main avenues: looking for a new job, attaining higher education such as additional degrees or certifications, the development of new skills, or networking with the right people. For some budgeteers, a higher income can come through investment income, though this method only tends to work in the long term. In some situations, a second job may be necessary to make ends meet.
The main source of income for most Americans in retirement is Social Security. It is important to remember that Social Security payments can only be received as early as age 62. Please visit any of the calculators below for more specific information or calculations.
Take-Home-Paycheck Calculator
Income Tax Calculator
Salary Calculator
Social Security Calculator
Expenses
Housing & Utilities
Most budgeteers will normally have rent or mortgage costs as the bulk of their monthly housing expenses. A general rule of thumb says housing costs should be no more than 30% of monthly gross income, give or take. Any budgeteer who finds that their housing costs are significantly more may find it worthwhile to consider more cost-effective approaches to housing. This may include refinancing to a lower rate, relocating to a more budget-friendly location, or downsizing to a smaller home if possible. They may also consider renting out an extra room if they have one for rental income. Smaller ways to save on housing costs include transitioning to new, smart technologies that generally tend to be more energy-efficient such as programmable thermostats, energy-efficient lightbulbs, and the installation of solar panels. Please visit any of the calculators below for more specific information or calculations.
House Affordability Calculator
Mortgage Calculator
Rent Calculator
Transportation
For most budgeteers, the bulk of transportation expenses will probably be their car payment or auto loan. There is generally much leeway to reduce this expense, as retail prices of different cars vary greatly. Choosing to purchase a car within a specific price range will go a long way towards meeting the financial goals of a budget. As a general rule of thumb, monthly car payments should amount to less than 10% of gross income. Other transportation expenses generally include fuel, maintenance, and insurance. There are a number of different ways to try and cut down on transportation expenses. For one, depending on the region, car ownership is not an absolute necessity, and there are alternative transportation options. If possible, use public transport, carpool, bike, or walk instead. Not only can these help a person meet their budget, but they are also eco-friendly and some can provide exercise. Maybe consider owning a more fuel-efficient vehicle. If car ownership is a must, routine upkeep can help maintain the car in optimum condition. This may include properly inflating tires, performing oil changes, tuning the engine. Also, try to stay educated on traffic laws and operate motor vehicles in a legal manner; not only will traffic violations result in fines, but they can also cause a hike in auto insurance premiums. Car owners who find that they are paying excessively for fuel may want to change driving habits such as aggressive acceleration. As a rule of thumb, try to keep total transportation costs below 15% of income. Please visit any of the calculators below for more specific information or calculations.
Auto Loan Calculator
Cash Back or Low-Interest Calculator
Auto Lease Calculator
Gas Mileage Calculator
Fuel Cost Calculator
Other Debt & Loan Payments
Credit cards carry negative connotations regarding budgeting because people tend to use them to spend more than they can afford. It is important to remember that credit cards are not an endless resource and that they must be repaid in a timely manner to avoid large interest payments.
Although credit cards can potentially exacerbate debt, when utilized under strict control, credit cards can be incorporated into a budget as a way to save on purchases and even build good credit. However, particularly for those who have constrained budgets, it is important to use credit cards sparingly to avoid large interest payments that could strain budgets even further. Please visit any of the calculators below for more specific information or calculations.
Free Budget Calculator
When it comes to personal finance, it's best not to play the guessing game. Sometimes the easiest way to manage your monthly budget is to visualize it. With Quicken's budget calculator, it's easier than ever to manage your finances.
Getting Started: Put Together a Budget
Take the time to add up your total monthly income from all sources and list your regular monthly expenses to create a monthly budget. Categorize expenses in groups to make the process simpler. For example, include mortgage payments or rent as well as utilities when you list an amount for housing. Transportation includes not just your car payments but gas, insurance, registration, and repairs as well. Quicken's Free Budget Calculator gives you a boost toward getting this done by doing all the math for you.
Review Where Your Money Goes
One benefit of building a budget is that it forces you to track your spending and see in black and white (or in this case—color) where your money goes. This kind of expense-tracking exercise shows how even little costs add up.
Realize Your Goals
Creating a budget forces you to reevaluate your goals and priorities. If you aren't saving money for the things you plan to do, you aren't likely to do them. For example, rather than fantasize about buying a home or going back to school, including contributions to funding these goals in your monthly budget.
Emergency Planning: Prepare for the Unexpected
You can prepare for the unexpected by creating an emergency fund with sufficient cash to carry you through hard times. Your emergency fund should contain enough money to pay your bills for three to six months. Make your "emergency fund" a budget item and contribute small amounts monthly until the fund is large enough to serve as a safety net.
