Split your take-home pay into 75% spending, 15% investing, and 10% saving, with monthly and annual amounts for every bucket.
75/15/10 Rule Formula
The 75/15/10 rule splits every dollar of take-home pay into three jobs:
Spending = I * 0.75 Investing = I * 0.15 Saving = I * 0.10
Variables:
- I is monthly take-home (after-tax) income. Biweekly pay converts as pay x 26 / 12, weekly as pay x 52 / 12, and annual as pay / 12
- Spending (75%) covers all living costs – needs and wants alike
- Investing (15%) goes to long-term wealth building such as retirement accounts and index funds
- Saving (10%) goes to cash goals – an emergency fund first, then sinking funds
Select your pay frequency, enter your take-home amount, and the calculator returns the three monthly allocations plus the annual totals. Together the investing and saving shares put 25% of income to work every month, which is more aggressive than the 20% target in the classic 50/30/20 rule.
75/15/10 Splits at Common Income Levels
The rule applied to a range of monthly take-home incomes.
| Monthly take-home | Spending (75%) | Investing (15%) | Saving (10%) |
|---|---|---|---|
| $3,000 | $2,250 | $450 | $300 |
| $4,000 | $3,000 | $600 | $400 |
| $5,000 | $3,750 | $750 | $500 |
| $6,500 | $4,875 | $975 | $650 |
| $8,000 | $6,000 | $1,200 | $800 |
Example Problems
Example 1: A monthly salary.
Take-home pay is $5,000 per month:
Spending = 5,000 x 0.75 = $3,750. Investing = 5,000 x 0.15 = $750. Saving = 5,000 x 0.10 = $500. Over a year that directs $9,000 into investments and $6,000 into cash savings.
Example 2: Biweekly pay.
You take home $2,100 every two weeks. Monthly income = 2,100 x 26 / 12 = $4,550. Spending = $3,412.50, investing = $682.50, saving = $455 per month.
Frequently Asked Questions
How is 75/15/10 different from 50/30/20?
The 50/30/20 rule separates needs (50%) from wants (30%) and directs 20% at savings and debt. The 75/15/10 rule doesn’t police the needs/wants line – all spending shares one 75% bucket – but it commits more of your income (25%) to wealth-building and explicitly splits it between investing and cash saving. It suits people who want a simpler spending rule with a more aggressive future-focus.
What goes in the 15% investing bucket?
Long-horizon assets: 401(k) or 403(b) contributions, IRAs, HSA investments, and taxable brokerage funds. If your employer matches contributions, capturing the full match should be the first move – it’s an instant return no other allocation can beat.
What if I can’t live on 75%?
Start where you are and ratchet: perhaps 85/8/7 today, moving a percentage point from spending to the other buckets every few months. High fixed costs – usually housing or a car payment – are what make 75% infeasible, and those respond to structural changes, not willpower.
