Calculator Definitions
To use a 50/30/20 calculator effectively, it can be a good idea to understand the terms involved. Here are some important ones:
• Monthly after-tax income: This amount includes what you take home after taxes. If you contribute to an employer-sponsored retirement plan, such as a 401(k), IRA, health savings accounts, or other type of automatic savings, those amounts get deducted from your pay as well.
• Necessities: These are considered items and services you need, including housing, utilities, food, transportation, phone, minimum debt repayments, childcare, and internet connectivity.
• Wants: Sometimes referred to as discretionary spending, these are things that are nice (and fun) to have but aren’t necessary for survival. For example, this category can include dining out, entertainment, vacations, streaming services, and splurge items.
• Savings and Debt Repayment: This is the amount earmarked for saving for the future, plus any extra debt payments you want to make. Items include contributions toward retirement accounts and emergency funds.
What is the 50/30/20 Budget?
The 50/30/20 budget rule is a popular budgeting tactic that can be helpful for allocating your spending and saving. It gained attention when Sen. Elizabeth Warren introduced it in the book she co-authored, All Your Worth: The Ultimate Lifetime Money Plan.
Instead of setting specific amounts to go toward those categories, you will devote a certain percentage of your after-tax dollars toward different budgeting buckets.
This approach helps structure your funds so that you have enough money for your needs, savings goals, and fun purchases. Whether you use a 50/30/20 budget calculator or figure it out yourself manually, the idea is to get you on track so that you can hit your desired financial goals.
Here’s how a 50/30/20 budget is broken down:
• Necessities: 50% of your income
• Wants: 30% of your income
• Savings and Debt Repayment: 20% or your income
How the 50/30/20 Budget Calculator Can Help
The 50/30/20 budget calculator can help you identify how you’re spending on needs and wants and how your saving efforts add up vs. your earnings. This may reveal that you should cut back on some discretionary spending, or it might show that you can save more toward your down payment fund than you thought.
Not only can a 50/30/20 budget calculator help simplify the process of managing your money, but it can also be a valuable tool when your financial situation changes.
It can be easy to update your budget when you get a raise, have a baby (and add childcare expenses to the mix), or start bringing in some more cash via a low-cost side hustle.
More budgeting resources:
Enhance your 50/30/20 strategy with better banking.
With SoFi Checking and Savings, get up to 3.10% APY1, no account fees2, and up to $400 with eligible direct deposit of $1,000 or more.†
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SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
1 Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at https://www.sofi.com/legal/banking-rate-sheet.
2
We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
† Who is eligible for a Direct Deposit Bonus?
New and existing SoFi members who have never set up direct deposit with SoFi are eligible for the Direct Deposit Bonus. Bonuses are limited to one bonus per SoFi member. In the case of a joint account, direct deposit activity will only be counted towards the primary account holder’s eligibility for the bonus (the primary account holder is the member who opened the joint account first).
How do I earn the Direct Deposit Bonus?
1. Set up your first Eligible Direct Deposit. SoFi must receive it on or before 12/31/26.
2. Once SoFi receives and recognizes your first Eligible Direct Deposit of $1 or more, we will add up the Total Eligible Direct Deposits received over the next 25 calendar days. This total will determine the bonus amount.
| Total Eligible Direct Deposit |
Bonus Amount |
Timing |
| $1.00 - $999.99 |
$0 |
To determine your bonus amount, SoFi will add up all your Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. |
| $1,000.00 - $4,999.99 |
$50 |
| $5,000.00 or more |
$400 |
3. You will receive the bonus amount in your SoFi Checking account within 7 business days of completing all requirements listed above. You are only eligible to receive one bonus amount. You must have an open SoFi Checking account in good standing at the time of the bonus payment.
What is an Eligible Direct Deposit?
Eligible: Recurring ACH deposit of regular income to your SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by your employer, payroll or benefits provider or government agency ("Eligible Direct Deposit")
Not Eligible: Deposits that are not from an employer, payroll or benefits provider or government agency and deposits that are non-recurring in nature are not eligible. Examples of deposits that are not eligible include check deposits, peer-to-peer transfers (e.g., transfers from Zelle®, PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), bank ACH funds transfers, wire transfers from external accounts, and IRS tax refunds. SoFi Bank shall, in its sole discretion, assess your Eligible Direct Deposit activity to determine eligibility and may require additional documentation to complete this verification.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your initial Eligible Direct Deposit. After SoFi validates the details of your Eligible Direct Deposit, your Direct Deposit Bonus amount will be based on the amount of Eligible Direct Deposits received within 25 days of your initial Eligible Direct Deposit of $1 or more.
What else is important to know?
- This promotion is available between 5/15/2026 at 12:01AM ET and 12/31/2026 at 11:59PM ET. SoFi reserves the right to modify or end the promotion at any time without notice. The terms of this promotion take precedence over the terms of any prior Direct Deposit promotion.
- SoFi reserves the right to exclude any members from participating in this promotion for any reason, such as suspected fraud, misuse, or suspicious activity.
- SoFi members with Eligible Direct Deposit activity can earn 3.10% annual percentage yield (APY) on savings balances. Interest rates are variable and subject to change at any time. These rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet.
- Bonuses are considered miscellaneous income, and may be reportable to the IRS on Form 1099-MISC (or Form 1042-S, if applicable). SoFi is required to do this reporting in compliance with the applicable federal and state reporting requirements. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer; consult with your tax advisor to determine applicable tax consequences.
- This promotion is offered by SoFi Bank, N.A, Member FDIC ("SoFi").
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