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Budget Calculator Australia โ€” 50/30/20 Rule

Plan your monthly budget, compare your spending against Australian benchmarks, and set savings goals with the 50/30/20 framework.

The 50/30/20 rule: 50% of after-tax income on needs, 30% on wants, 20% on savings. A simple framework adapted for Australian living costs.
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Your take-home pay after tax and super
$
Monthly rent or mortgage repayment
$
Electricity, gas, water, internet
$
Supermarket and essential food
$
Car, fuel, rego, public transport
$
Health, car, home/contents insurance
$
Streaming, gym, phone plan, etc.
$
Restaurants, cafes, events, hobbies
$
Clothing, personal care, gifts, etc.
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How to Use This Calculator

Tab "Budget Planner"

Enter your after-tax monthly income and break down your spending into categories: housing, utilities, groceries, transport, insurance, subscriptions, dining out, and other. The calculator shows your total spending, monthly surplus or deficit, savings rate, a 50/30/20 assessment, and a housing stress check (above 30% of income on housing per the AHURI definition).

Tab "Benchmarks"

Compare your spending against Australian averages. Select your household size and location (capital city or regional). The calculator shows which categories are over or under the AU benchmark, identifies potential savings areas, and calculates how much you could save annually if you brought all categories to benchmark levels. Data is based on ABS Household Expenditure Survey 2024.

Tab "Savings Goal"

Set a target amount, enter your current savings, and specify your timeline in months. The calculator shows how much you need to save monthly, whether your current surplus covers it, what spending cuts are needed, and a projected timeline at your current rate.

The Formulas

50/30/20 rule:
Needs (50%): Housing + Utilities + Groceries + Transport + Insurance
Wants (30%): Subscriptions + Dining out + Other
Savings (20%): Income - Total spending

Savings rate:
Savings rate = (Income - Total spending) / Income x 100

Housing stress (AHURI definition):
Housing stress = Housing cost > 30% of gross income

Monthly savings needed:
Monthly needed = (Target - Current savings) / Months

AU average household spend (ABS HES 2024):
Single, capital city: ~$4,000-$5,000/mo
Couple, capital city: ~$6,500-$8,000/mo
Family (4+), capital city: ~$8,500-$10,500/mo

All benchmark figures are based on the ABS Household Expenditure Survey 2024 and adjusted for capital city vs regional areas. Individual spending varies widely โ€” use benchmarks as a guide, not a target.

Example

Sarah โ€” Marketing Manager in Sydney, $6,000/mo take-home

After-tax income $6,000/mo. Housing $2,200 (rent). Utilities $200. Groceries $500. Transport $400. Insurance $150. Subscriptions $80. Dining out $300. Other $200.

Total spending$4,030/mo
Surplus$1,970/mo
Savings rate32.8%
Housing as % of income36.7% โ€” housing stress
50/30/20 checkNeeds 55.8%, Wants 9.7%, Savings 32.8%

Sarah's savings rate of 32.8% exceeds the 20% target, but her housing costs trigger the AHURI housing stress threshold at 36.7% of income. Her needs category is above 50% due to Sydney rent. She could look at share housing or a cheaper suburb to bring needs below 50%.

Australian Budget Benchmarks

CategorySingle (Capital)% of Income
Housing (rent/mortgage)$2,000-$2,50030-35%
Groceries$400-$6008-10%
Transport$300-$5006-8%
Utilities$150-$2503-4%
Insurance$100-$2002-3%
Dining / entertainment$200-$4004-6%
Other$200-$4004-6%
Total$3,350-$4,85057-72%

Source: ABS Household Expenditure Survey 2024. Amounts are monthly. Regional areas are typically 10-20% lower for housing and dining, but similar or higher for transport and utilities.

Frequently Asked Questions

In high-cost cities like Sydney and Melbourne, the 50% needs target can be difficult to achieve due to housing costs. Many Australians spend 55-65% on needs. The rule works better as a directional guide: aim to reduce needs spending where possible, and prioritise the 20% savings target even if needs exceed 50%. Regional areas and smaller capitals like Adelaide, Brisbane, and Perth are more achievable.
The Superannuation Guarantee (12% of salary) is paid by your employer on top of your salary and is not part of your take-home pay. You don't need to budget for it โ€” it's automatic. However, if you make voluntary super contributions (salary sacrifice or personal contributions), these should be included in your "savings" allocation under the 50/30/20 rule.
Needs are essential expenses you must pay regardless: rent/mortgage, utilities, basic groceries, minimum transport to work, and required insurance (health, car if you drive). Wants are discretionary: dining out, entertainment, streaming services, gym memberships, holiday travel, and premium versions of essentials (e.g., a new car when a used one would do). The line is personal โ€” be honest with yourself.
The general recommendation is 3-6 months of essential expenses. In Australia, with relatively strong social safety nets (Centrelink, Medicare), 3 months is a reasonable starting point. If you're self-employed, a contractor, or have dependents, aim for 6 months. Keep your emergency fund in a high-interest savings account (5%+ rates are available in 2025-26) separate from your everyday spending account.
Key strategies: meal plan weekly and stick to a shopping list; buy in bulk at Costco or Aldi for staples; use Woolworths/Coles specials catalogues; buy seasonal produce from local markets; cook in batches and freeze; reduce food waste (the average Australian household wastes ~$2,500/yr in food). Switching from Woolworths/Coles to Aldi for most items can save 20-30% on groceries.

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