Monthly Budget Calculator — Discovery

JTBD

“How should I allocate my monthly salary?”

The 50/30/20 Rule for India

50% Needs: Rent, groceries, EMIs, insurance premiums, utilities (electricity, water, gas, broadband), school fees, domestic help
30% Wants: Dining out, entertainment, shopping, travel, subscriptions (Netflix, Spotify, gym)
20% Savings: SIP in mutual funds, PPF contributions, EMI prepayment, emergency fund top-up, NPS voluntary

India-Specific Considerations

Housing costs in metros

Mumbai/Bangalore: Housing can consume 40-50% of in-hand salary alone
Delhi NCR: 30-40% for similar quality housing
Tier 2 cities: 15-25% — much more breathing room
Rent-to-income: max 30% recommended, reality 35-45% in metros

Joint family dynamics

Lower per-capita housing cost when living with parents
Contribution to household expenses instead of full rent
Savings rate can be higher (30-40%) for those living with family

Domestic help

Unique to India — cook, maid, driver adds ₹5,000-₹15,000/month in metros
Often not budgeted explicitly but is a fixed monthly expense

School fees

Private school fees: ₹5,000-₹30,000/month depending on city and school tier
Significant budget line item for families with children

Emergency Fund Benchmarks

Target: 6 months of essential expenses
Middle class benchmark: ₹3-5 lakh
Keep in liquid fund or savings account (not FD lock-in)
Priority #1 before any investment

Insurance Benchmarks

Term life insurance: ₹500-₹1,000/month for ₹1 Cr cover (age 30, non-smoker)
Health insurance: ₹800-₹1,500/month for ₹5 lakh family floater
Both are non-negotiable fixed expenses, not optional

Income Tier Benchmarks

₹30,000-₹50,000/month (tight): 50/30/20 is aspirational; needs may consume 60-70%. Focus on reducing wants to 15-20%.
₹50,000-₹1,00,000/month (comfortable): 50/30/20 is achievable. Target 20-25% savings rate.
₹1,00,000+ /month (significant saving potential): Can push savings to 30-40%. Needs don’t scale linearly with income.

Financial Health Score Components

Savings rate: 20%+ is healthy (weight: 25%)
Emergency fund: 6 months expenses covered (weight: 20%)
Insurance coverage: Term life + health insurance (weight: 15%)
Debt-to-income: EMIs under 40% of income (weight: 20%)
Investment diversification: SIP/PPF/NPS active (weight: 20%)

/in/salary-calculator — know your in-hand salary
/in/sip-calculator — plan SIP allocation
/in/emi-calculator — check EMI affordability
/in/income-tax-calculator — understand tax outgo
/in/hra-calculator — optimize rent vs HRA
/in/inflation-calculator — plan for rising costs