Salary reality check: where does your take-home actually go?
Put in your take-home salary and monthly costs. See your savings rate, how you compare with the 50/30/20 rule, and how big your emergency fund should be.
Most of us know our salary to the rupee but not where it goes. Put in rough monthly numbers. Round figures are fine.
Left to save each month
₹20,000
26.7% of take-home
Needs
₹40,000
53.3% · guide is 50%
Wants
₹15,000
20% · guide is 30%
You save 26.7%, at or above the 20% guide. Make sure it is invested on autopilot, for example through a SIP on salary day.
A six-month emergency fund for your needs is about ₹2.4 L. Build this before investing for long-term goals.
- 50/30/20 guide
- Your money
50/30/20 is a starting point, not a rule. In big cities rent alone can be 30% or more, so many people run closer to 60/20/20.
Show the numbers
| 50/30/20 guide | Your money | |
|---|---|---|
| Needs | ₹37,500 | ₹40,000 |
| Wants | ₹22,500 | ₹15,000 |
| Savings | ₹15,000 | ₹20,000 |
What is the 50/30/20 rule?
It is a simple way to split your take-home pay:
- 50% for needs: rent or home-loan EMI, groceries, bills, school fees, insurance, commuting and any other EMIs.
- 30% for wants: eating out, shopping, trips, subscriptions and upgrades.
- 20% for savings: emergency fund, SIPs, PPF, NPS and prepaying loans.
It is a starting point, not a law. Use it to spot which bucket is out of shape.
A worked example
On a ₹75,000 take-home with the default numbers above, needs come to ₹40,000 (53%), wants ₹15,000 (20%), and ₹20,000 is left to save, about 27%. That beats the 20% guide. The next step is to make the saving automatic.
Does 50/30/20 work in Indian cities?
Often not exactly. In Mumbai, Bengaluru or Gurugram, rent alone can take 30–40% of a starting salary. If your needs are 60%, aim for 20/20 between wants and savings rather than giving up on saving. If you live with family and your needs are 30%, push savings well beyond 20%.
How much should I save from my salary?
- Under 10%: fix this first. Look at the biggest line in wants and any EMI you could close.
- 10–20%: a decent base. Raise it with every increment, for example with a step-up SIP.
- Over 20%: good. Make sure the money is invested for a goal, not sitting idle in a savings account.
Build the emergency fund before investing
Keep about six months of needs in a savings account, sweep FD or liquid fund. On these numbers that is ₹2.4 L. Read how long your savings would last if your salary stopped.
Keep EMIs in check
If rent and EMIs together take more than about 40% of your take-home, one surprise can push you into debt. Avoid new loans until that share falls.
Questions people ask
How much of my salary should I save in India?
A common target is 20% of take-home pay. If that is not possible yet, start with 10% and raise it with every salary increase.
Should I use gross salary or take-home salary?
Use take-home: the amount that reaches your bank account after tax, PF and other deductions. Your EPF contribution is already a form of saving on top.
Do EMIs count as needs or wants?
Treat all EMIs as needs, because you must pay them. That is why a car or gadget loan quietly shrinks your savings.
Is 50/30/20 realistic on a low salary?
On a small salary, needs can take 70% or more. Save whatever you can, even ₹500 a month, and protect the habit. The percentage can grow later.
Related guides
This calculator is for education only and is not personalised financial advice. Results depend entirely on the assumptions you enter; real returns, rates and costs will differ. Consider a SEBI-registered adviser for decisions about your own money.