This monthly budget calculator is a tool that will aid you in planning your savings and expenses efficiently. You can use it either as a monthly expenses calculator, to assess the current state of your expenses, or as a budget creator, to plan the ideal budget you’d like to have.
If you want to plan your company’s budget as well, make sure to check out the business budget calculator.
Categories of our monthly budget calculator
This budget calculator is divided into several sections. You need to fill all of them (except for the “summary” section) out. The best way to do it is to track your expenses for a month and input all numbers you collected into this calculator. Later, you can adjust the values to create your target budget.
The categories include:
- Income: this is the only part of your budget, where money actually flows into your account. It includes your salary, as well as all other sources of income, both monthly (received each month – for example, a side business revenue) and annual (received each year – for example, thirteenth salary). If you receive after-tax salary, input a tax rate equal to 0%. Otherwise type in the percentage of salary that will be taken away from you in taxes.
- Savings: this is all of the money you put on savings accounts, whether it is an emergency fund or money you use on investments. This money will still be yours, but our budget creator assumes it’s “untouchable” – you cannot spend it on other things.
- Monthly expenses: all expenses you make on a daily basis, from groceries to utilities. This category also includes payments you make each month, such as loans and other liabilities. If you are not sure what your monthly payment for a lease is, use our lease calculator.
- Annual expenses: all expenses you make less frequently than once a month, for instance tuition or vacations. If you normally receive gross salary, this section will also include taxes.
“Summary” section of the budget creator
Once you typed down all information about your budget, our budget calculator will determine the balance for you. This tool will provide you with the following data:
- Total income: total amount of money you make each month.
- Total savings: you will be able to see how much you save each month and what will be total after the whole year. Note that this calculator doesn’t take into account the interest accumulated over the whole year – you can use our APY calculator to do that.
- Total monthly expenses: this is the total sum you spend a month. Compare it with your income. Is it not too high? Compare this number with your savings, too. Experts say that your emergency fund should be equal to three to six-month worth of expenses. Did you plan an adequate savings fund?
- Total annual expenses: amount of money you will have to spend at one point during the year.
- Monthly budget balance: the sum that will stay on your account after the whole month (doesn’t include savings). If it is positive, you are doing well. If negative… Maybe you should cut down some expenses?
- Annual budget balance: similarly, this is the balance of your account after a full year. Are you happy with this number? If not, simply keep adjusting your budget!