Budget Calculator
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Surplus$2,700.00
Total Expenses$2,300.00
expenses$2.3K
This budget calculator helps you plan your money each month by summing your spending across categories and comparing it against your income to reveal whether you have a surplus or a shortfall. You list expense categories such as rent, food, and transport with their amounts, and it totals them, then subtracts that total from your monthly income. A positive result is money left over to save or invest, while a negative result flags overspending you need to trim.
Formula
Surplus = Income − Σ(category amounts)
- Income
- Total monthly income
- Σ(category amounts)
- Sum of all expense category amounts
- Surplus
- Income minus total expenses (negative means a deficit)
How it works
- Enter your total monthly income (after-tax take-home pay is the most useful figure for budgeting).
- Add expense categories with a name and a monthly amount for each. The calculator adds them all together to compute your total monthly expenses.
- It subtracts total expenses from income to show your monthly surplus or deficit, so you can rebalance categories until the budget works.
Worked example
A monthly income of $6,000 with rent $1,800, food $600, and transport $400.
- Total expenses = 1,800 + 600 + 400 = $2,800.
- Surplus = 6,000 − 2,800 = $3,200.
Total monthly expenses are $2,800, leaving a surplus of $3,200 available to save, invest, or allocate to other goals.
Frequently asked questions
- Should I use gross or net income?
- Use net (take-home) income, the amount that actually lands in your account after taxes and payroll deductions. Budgeting from gross income overstates what you have available and tends to leave you short.
- What is a healthy surplus to aim for?
- A common guideline is to save or invest at least 20% of take-home pay, leaving the rest for needs and discretionary spending. The right surplus depends on your goals, debts, and how much of an emergency fund you have built.
- What does a negative surplus mean?
- A negative result is a deficit, meaning your planned expenses exceed your income. You will need to cut spending in one or more categories or increase income until the surplus reaches at least zero to avoid going into debt.