Budget With Net, Not Gross
Your paycheck is reduced by taxes and deductions. Always budget using take-home (net) pay. Use our $60k after tax, $50k after tax, or Salary after tax USA for estimates.
The 50-30-20 Rule
50% needs (rent, utilities, groceries), 30% wants (dining, entertainment), 20% savings and debt. At $3,900/month net: $1,950 needs, $1,170 wants, $780 savings. Adjust for your situation.
Rent Rules
Common rule: spend no more than 30% of gross income on rent. On take-home that can mean 35–40%. At $4,000/month net, that's $1,200–1,600 for rent depending on which rule you use.
When to Use Our Calculators
Use our Salary Calculator to convert hourly to yearly and see tax estimates. Use $50k monthly, $60k monthly for gross-to-monthly. See Cost of Living Guide for location impact.
FAQ
Should I budget on gross or net salary?
Always use net (take-home). Gross includes money you never see.
What is the 50-30-20 rule?
50% needs, 30% wants, 20% savings. A simple framework for allocating income.
How much rent can I afford?
30% of gross or 35–40% of net are common guidelines. Location matters.
For educational purposes. Not financial advice. March 2025.