Monthly Budget Calculator
Build a complete monthly budget by categorizing income and expenses to find your surplus or deficit.
Reviewed by Sahil, Senior Finance & Tax Editor
Formula
Surplus/Deficit = Total Income - Total Expenses | Savings Rate = (Income - Expenses) / Income x 100
A monthly budget tracks all income and expenses to determine if you have a surplus (money left over) or deficit (overspending). The savings rate measures what percentage of income you keep.
Worked Examples
Example 1: $5,000/month Budget
Problem:Budget $5,000 monthly income across standard expense categories.
Solution:Housing: $1,500 (30%)\nFood: $500 (10%)\nTransportation: $300 (6%)\nUtilities: $200 (4%)\nInsurance: $250 (5%)\nDebt: $200 (4%)\nSavings: $500 (10%)\nEntertainment: $150 (3%)\nOther: $100 (2%)\nTotal expenses: $3,700\nSurplus: $1,300 (26%)
Result:Total Expenses: $3,700 | Surplus: $1,300 | Savings Rate: 26%
Frequently Asked Questions
How do I create a monthly budget?
Start by listing all income sources, then categorize every expense. Common categories include housing (25-35% of income), food (10-15%), transportation (10-15%), utilities (5-10%), insurance (10-25%), debt payments (variable), savings (at least 10-20%), entertainment (5-10%), and miscellaneous. Track spending for 2-3 months to get accurate numbers. The goal is income minus expenses equals zero or positive — every dollar has a purpose.
References
Reviewed by Sahil, Senior Finance & Tax Editor · Editorial policy