Enter the after-tax income ($) and the budget rate into the Calculator. The calculator will evaluate the 20 30 50 Rule. 

20 30 50 Rule Formula

B = ATI * R

Variables:

  • B is the 20 30 50 Rule ($)
  • ATI is the after-tax income ($)
  • R is the budget rate

To calculate 20 30 50 Rule, multiply the after-tax income by each budget rate, i.e. .20,.30, and .50.

How to Calculate 20 30 50 Rule?

The following steps outline how to calculate the 20 30 50 Rule.

  1. First, determine the after-tax income ($). 
  2. Next, determine the budget rate. 
  3. Next, gather the formula from above = B = ATI * R.
  4. Finally, calculate the 20 30 50 Rule.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

after-tax income ($) = 356

budget rate = 80