Monthly Budget Simulator

Analyze the structure of your income and expenses, calculate your debt ratio, monthly savings capacity and mortgage borrowing capacity.

Budget 50/30/20

Revenues

Net monthly income (€)

Expenses

Rent / Mortgage

Other credits

Energy

Food

Transport

Leisure

Other expenses

Savings

Emergency savings

Project savings

Retirement savings

Your savings rate is 10%

Warning: with an income of 2 000€, your debt ratio is 35% (recommended max: 33%)

Net monthly income (€)

2 000 €

Expenses

1 400 €

Savings

200 €

Debt ratio★

35%

Savings rate

10%

Remaining

400 €

Estimated borrowing capacity

131 836 €

With an income of 2 000€, your debt ratio is 35% (above the recommended maximum of 33%).

Your savings rate is 10% (goal reached!).

The 50/30/20 Rule: What is it?

The 50/30/20 rule is a budgeting method popularized by Elizabeth Warren, US Senator and bankruptcy expert. It offers a simple and effective way to allocate your net income to balance your personal finances.

50%

Essential needs

Rent, electricity, water, insurance, food, transportation, health, loan payments.

30%

Wants & leisure

Restaurants, outings, streaming, shopping, vacations, hobbies, non-essential subscriptions.

20%

Savings & investment

Emergency fund, retirement savings, investments, early debt repayment.

Why use this rule?

The 50/30/20 rule offers a simple but powerful framework for managing your money without overthinking.

Simplicity

Only 3 categories to manage, no need to track every euro.

Flexibility

Adaptable to your situation (expensive city, FIRE goals, etc.).

Balance

Enjoy life while building your financial future.

Automation

Set up automatic transfers and forget about it.

Concrete examples by income level

Net income: 2 000€

Needs: 1 000€Wants: 600€Savings: 400€

Net income: 3 000€

Needs: 1 500€Wants: 900€Savings: 600€

Net income: 4 500€

Needs: 2 250€Wants: 1 350€Savings: 900€

Adapt the rule to your situation

The 50/30/20 rule is a starting point, not a strict requirement. Here's how to adapt it:

Expensive city (NYC, SF...)

Housing is expensive? Switch to 60/20/20 temporarily.

60%20%20%

Aggressive saver (FIRE)

Early retirement goal? Aim for 50/20/30 or even 50/10/40.

50%20%30%

6 tips to succeed with your budget

Calculate your NET income after taxes, not your gross salary.

Automate your savings as soon as you receive your salary (pay yourself first).

Review your budget quarterly to adjust it.

Use separate accounts for each category if needed.

Negotiate your fixed charges: insurance, phone, internet.

First build an emergency fund of 3 to 6 months of expenses.

Ready to master your budget?

Create a free account to track your expenses and automatically optimize your budget allocation.

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How to manage your monthly budget effectively?

Good budget management starts with a clear view of your income and expenses. Categorizing your expenses helps identify areas where savings are possible and generate a regular monthly savings capacity.

The 5 expense categories to analyze:

Housing: rent/mortgage, charges, home insurance (ideally < 33% of income)
Food: groceries, restaurants
Transport: car, fuel, public transport
Leisure & subscriptions: streaming, sport, outings
Savings & investments: PEA, life insurance, savings accounts (target: 10-20%)

The 50/30/20 rule: the simplest budgeting method

Popularized by US Senator Elizabeth Warren, the 50/30/20 rule is a simple guide to structure your monthly budget.

50%

Essential needs

Housing, food, transport, health, bills

30%

Wants & leisure

Restaurants, travel, subscriptions, shopping

20%

Savings & debt repayment

Investments, life insurance, debt repayment

Debt ratio: the threshold not to exceed

The debt ratio measures the share of your income used to repay your loans (mortgage, consumer credit, car...). In France, banks apply a ceiling of 35% of net income for credit approval.

Formula:

Debt ratio = (Total monthly payments ÷ Net income) × 100

< 25%

Healthy situation

25-35%

Caution zone

> 35%

Credit refusal risk

Frequently asked questions about budget management

What is a good monthly savings rate?▼

A savings rate of 10% is often cited as a minimum to build an emergency fund and prepare for retirement. 20% is considered excellent. Above 30%, you are on the path to financial independence. Our simulator calculates your real savings capacity from your income and expenses.

How do I calculate my mortgage borrowing capacity?▼

Your borrowing capacity is calculated based on your net income and the maximum authorized debt ratio (35% in France). By subtracting your current monthly payments, you get the maximum monthly payment available for a mortgage. Multiplied by the duration and rate, this gives the borrowable capital.

How to reduce fixed expenses to save more?▼

The most effective levers are: renegotiate or cancel your internet/mobile subscriptions (potential saving of €20-50/month), compare your insurance policies (home, car: €100-300/year), optimize your energy contract, and review your digital subscriptions (streaming, cloud, etc.). Every euro saved on fixed costs is permanent.