This budget calculator monitors the monthly budget that can assure a balance between your monthly income and expenses so you know what you’re spending. You can read more on this subject and check an example of budgeting below the form.

Income section

Monthly salary/wages and associated income:
Monthly pension’s income:
Monthly Social Security income:
Monthly investments and savings income:
Other monthly income:

Expenses section

Housing and associated debts:

Monthly mortgage payment:
Monthly property tax payment:
Monthly rental payment:

Other debts:

Monthly auto loan payment:
Other monthly loan or debt payments:

Living expenses:

Monthly grocery cost:
Monthly clothing cost:
Monthly utilities cost:
Monthly transportation cost:
Monthly child’s care cost:
Monthly personal care cost:
Other monthly living costs:

Healthcare expenses:

Monthly health insurance cost:
Other monthly healthcare costs:

Education expenses:

Monthly tuition cost:
Monthly training and courses cost:
Other monthly education cost:

Investments and savings:

Monthly investments:
Monthly savings:
Monthly 401K and IRA:
Monthly college savings:
Other monthly savings:

Entertainment expenses:

Monthly entertainment cost:
Monthly hobbies cost:
Other monthly entertainment cost:

How does this budget calculator work?

This is a great tool to use at home for managing your finances as it determines the monthly budget that can assure a balance between your monthly income and monthly expenses. The budget calculator is organized in 2 sections for income and expenses such way to be easier for you to input the data but also to catch a glance while at it. You will find that the form above covers a lot of specific areas where you either get money or spend money and there are also fields for other types of transactions that you can use if needed.

When you have everything filled in, you just click on the “Calculate” button to get the result with your specific monthly budget, grouped by income and expenses. You will also receive an interpretation of your budget balance.

A positive number means that you have a surplus, which you could use towards paying more debt or putting some savings aside. A negative number indicates that there is a deficit in your budget and that you are probably getting in more debt or that you are not going to be able to pay everything you are planning to.

What is a monthly budget?

This is a simple but extremely useful calculation of your family’s monthly incomes and expenses. It is a proper step in order to have control over what your family spends and what can actually afford to spend. By calculating your monthly budget you can decide how to best spend your money in order to assure a proper living standard and how much to save and invest for your family future.  By keeping the budget under control you will also be able to deal with paying your debts and last but not least you will know how to reduce wasteful and unnecessary purchases.

How to calculate a monthly budget?

First of all, the most important thing when establishing your budget is to count all the expenses and incomes you register. Be as accurate as you can when counting them because by omitting some of your monthly expenses you might end up being caught surprised at the end of the month by a deficit, which means you cannot afford to pay all of them. The same thing happens when you add extra income on your budget that is not regular and stable. If you are not sure on some income, taking a pessimistic approach and avoid including it within your monthly budget, otherwise you might get surprised at the end of the month that your assumptions were wrong. Second of all establish what expenses are secondary, and what incomes are unstable because this way you can play with your budget and simulate the best money allocation.

General steps on your monthly budget:

  • Count all monthly income;
  • Sum all of your incomes;
  • Group your monthly expenses within categories;
  • Split your monthly expenses in two lists: critical and non-critical;
  • Check the list with non-critical expenses to see whether you can reduce or eliminate some non-critical expenses;
  • Estimate how much you spend on a monthly basis for the expenses you decided to keep (critical and non-critical that were kept in the list);
  • Sum all of your expenses;
  • Make the difference between total incomes and total expenses;

If the result is positive you have a surplus which is perfect. But if the result is negative you have a deficit which means you have either to cut some other expenses from the list or to increase your monthly incomes.

Example calculation & budget interpretation

Item Monthly Budget Yearly Budget
Total Income $2,700.00 $32,400.00
Total Expenses $3,320.00 $39,840.00
Budget status (income - expenses) $-620.00 $-7,440.00
Total Housing and associated debts $900.00 $10,800.00
Total Other debts $500.00 $6,000.00
Total Living expenses $1,000.00 $12,000.00
Total Healthcare expenses $200.00 $2,400.00
Total Education expenses $0.00 $0.00
Total Investments and savings $700.00 $8,400.00
Total Entertainment expenses $220.00 $2,640.00
  • Your monthly budget calculation shows that you have a deficit in your budget which means you should decide whether to cut some expenses or increase your monthly income;
  • Your monthly investments and savings of $700.00 mean that you save and invest 25.93% from your Total income of $2,700.00.

16 Mar, 2015