Enter your numbers
Enter monthly amounts in every box. The amounts below are examples. Replace all six with your own figures, using £0 where a cost does not apply. Then select Calculate.
- Choose who this budget covers: just you, you and a partner, or your household. Include income and costs for the same people throughout.
- Have recent statements, payslips and bills ready. Include costs paid less often than monthly, and count each cost only once.
Paid weekly or have an annual bill? Convert it to a monthly amount
- Weekly: multiply by 52, then divide by 12. £60 a week is £260 a month on average.
- Every four weeks: multiply by 13, then divide by 12. £1,200 every four weeks is £1,300 a month on average.
- Yearly: divide by 12. A £600 annual bill needs a £50 monthly allowance.
Round the monthly figure to the nearest penny before entering it. These are monthly averages: the actual amount arriving or due in a particular month can differ. Include an annual-bill allowance once in the appropriate category, even if the bill is paid in one go.
Change the figures above and calculate.
Worked example: £420 left after entered costs
Using the example figures above: £2,500 take-home income minus £900 housing, £350 bills, £300 food, £180 travel and £350 other spending gives £2,080 total spending and £420 left each month.
This is an illustration, not a suggested budget. If a £600 annual insurance bill is missing, allow another £50 a month and the amount left becomes £370. Include that reserve once, within an appropriate spending category. Payment dates can still cause a shortfall within the month.
How to create your monthly budget
Use recent bank statements and payslips rather than guessing. Enter income after tax and deductions. Convert weekly amounts to monthly amounts by multiplying by 52 and dividing by 12; divide annual bills by 12 so irregular costs are included. Avoid counting the same cost twice.
Essential and discretionary spending
Housing, basic food, utilities and necessary transport are usually essential. Subscriptions, meals out and optional shopping may be flexible. The categories here group costs for speed: include childcare, insurance, minimum debt repayments, annual-bill reserves and planned saving under other spending if they are not already included elsewhere.
How much is left after bills?
The result is income minus every cost you entered. A positive balance is available only if the figures include all your commitments. Consider building a buffer, saving towards a goal or paying more towards debt when affordable. A zero balance leaves no room for costs you forgot.
What if spending exceeds income?
Check the figures first, then review flexible costs and bill contracts using our Bill Audit. If essential bills or minimum repayments are unaffordable, read where to get free UK debt help. Increasing borrowing is not a lasting way to close a budget gap.
Choose your next step
Use the Money MOT for a fuller picture of income, spending, debt and savings. Plan affordable contributions with the Savings Goal Calculator, or follow our monthly budgeting guide. Recheck your budget when income or bills change.
If you want to explore extra income, follow the extra-£100 monthly guide. Treat its examples as planning ideas, and only add income to this budget when you know what is available after costs and any tax.