Enter your monthly take-home pay and spending to find your surplus and savings rate.
Monthly surplus
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Total expenses
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Savings rate
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Savings + surplus
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Effective save rate
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Your breakdown
Updates live as you type
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Amount
How this budget calculator works
The calculator sums all your monthly expense categories, subtracts the total from your take-home pay, and shows the remaining surplus. The savings rate is the amount you explicitly earmark for savings divided by take-home income. The effective save rate adds any unallocated surplus to your designated savings, showing the maximum fraction of income that could be saved or invested each month.
Understanding your budget in India
Indian household budgets vary enormously by city. Rent in Mumbai or Delhi can easily consume Rs 20,000 to Rs 50,000 a month for a 1BHK, while the same money buys a 2BHK in Hyderabad or Pune. Groceries are generally cheaper in India than in Western countries, but eating out and food-delivery apps have become significant drains for urban professionals. The biggest structural difference from Western budgeting is that many Indian families have intergenerational financial obligations, sending money to parents or paying for siblings' education, which should be treated as a fixed expense line.
Building a surplus you can deploy
A monthly surplus is only valuable if it gets deployed productively. The standard priority order for India is: build three to six months of expenses as an emergency fund in a liquid instrument like a savings account or liquid mutual fund, then contribute enough to EPF and NPS to maximise Section 80C and 80CCD(1B) deductions, then invest the remainder in equity mutual funds via SIP for long-term wealth. Leaving surplus idle in a savings account earning 3 to 4 percent while inflation runs at 5 to 6 percent means your real purchasing power shrinks each year.
Frequently asked questions
What is a good savings rate in India?
Financial planners in India generally recommend saving at least 20 percent of take-home pay. The 50-30-20 rule adapted for India suggests 50 percent for needs such as rent, groceries, and utilities, 30 percent for wants such as dining and entertainment, and 20 percent for savings and investments. Given India has limited publicly funded retirement safety nets, a higher savings rate of 30 percent or more is prudent for long-term financial security.
How do I reduce expenses in a high-cost city like Mumbai or Bangalore?
The biggest lever in most Indian metro budgets is rent, which can consume 30 to 50 percent of take-home pay. Options include sharing accommodation, choosing outer suburbs with metro connectivity, or negotiating lease renewals before they roll over. Groceries are the next big category: cooking at home, using local sabzi mandis, and buying pulses and grains in bulk can cut costs significantly compared to supermarket shopping.
Should my EMI payments be included in the budget?
Yes. EMIs on home loans, car loans, personal loans, and credit card dues should all appear as fixed monthly outflows. Reserve Bank of India guidelines suggest total EMI obligations should not exceed 40 to 50 percent of net monthly income. If your EMIs plus rent already exceed that threshold, there is little room for unexpected expenses and emergency savings becomes urgent.
How often should I revisit my monthly budget?
Review your budget at least once a month, ideally in the first week of the new month when the previous month is fresh. Major life events such as salary increments, job changes, rent renewals, EMI completions, or new family expenses warrant an immediate revision. Inflation in India runs around 5 to 6 percent a year, so costs that seemed comfortable a year ago may have crept up meaningfully.