Budget Calculator

Take Control of Your Finances

Creating a budget is the first step toward effective money management. This interactive Budget Calculator helps you track your monthly income and expenses to see your balance. By understanding where your money is going, you can identify areas to save and make a plan to achieve your financial goals.

The Budgeting Formula Explained

The core of budgeting is a simple equation: Balance = Total Income - Total Expenses

• A positive balance means you have a surplus, which can be allocated to savings, investments, or debt repayment.
• A negative balance means you have a deficit, indicating you are spending more than you earn and need to make adjustments.

How to Use the Calculator

1. List Income: In the 'Income' section, list all your sources of monthly income (e.g., salary, side hustle) and their amounts.
2. List Expenses: In the 'Expenses' section, list all your recurring monthly expenses (e.g., rent, utilities, groceries, transportation).
3. Add/Remove Items: Use the Add Item and X buttons to customize the lists to match your personal situation.
4. Calculate Budget: The calculator will sum your income and expenses and display your final balance.

Real-World Example

• Income: Salary = $4,000
• Expenses: Rent=$1500, Utilities=$200, Groceries=$400, Car Payment=$300, Other=$500
• Total Income: $4,000
• Total Expenses: $2,900
• Balance: $4000 - $2900 = $1,100 surplus

Frequently Asked Questions (FAQ)

• How should I categorize my expenses? You can be as general or as specific as you like. Common categories include Housing, Transportation, Food, Utilities, Debt Payments, and Personal/Entertainment.
• What if my income or expenses are irregular? For irregular income or expenses, it's best to use an average from the past few months to get a realistic estimate.
• I have a negative balance. What should I do? A negative balance is a clear sign that you need to reduce your spending. Review your 'Expenses' list, particularly discretionary spending (like dining out or entertainment), and identify areas where you can cut back.