Cost of Living Calculator
Instantly calculate your monthly cost of living, budget surplus or deficit, and savings potential. Free, accurate tool for UK household budgeting.
Evaluate Your Monthly Budget
Enter your net income and typical monthly expenses to get an instant, personalised evaluation of your financial health and savings potential.
Budget Details
Enter your monthly figures in GBP (£) to calculate your budget health
Budget Evaluation
Calculated surplus/deficit and savings rate
The 50/30/20 Budget Rule
A popular and simple budgeting framework to help you allocate your net income effectively.
| Category | Recommended Allocation | Examples |
|---|---|---|
| Needs | 50% of Net Income | Rent/mortgage, utilities, groceries, minimum debt payments, basic transport. |
| Wants | 30% of Net Income | Dining out, entertainment, hobbies, premium subscriptions, holidays. |
| Savings & Debt | 20% of Net Income | Emergency fund, retirement contributions, extra debt repayments, investments. |
Cost of Living FAQ
Everything you need to know about managing your household budget and reducing expenses.
A cost of living calculator is a financial tool that helps you estimate your total monthly expenses (such as rent, utilities, groceries, and transport) and compares them against your net income to determine your budget surplus, deficit, and potential savings rate.
The 50/30/20 rule is a popular budgeting guideline that suggests allocating 50% of your net income to needs (rent, utilities, groceries), 30% to wants (dining out, entertainment), and 20% to savings and debt repayment.
You can reduce your cost of living by auditing and cancelling unused subscriptions, switching to cheaper utility providers, meal planning to reduce grocery bills, using public transport, and considering refinancing high-interest debt.
Financial experts generally recommend saving at least 20% of your net monthly income. This helps build a 3–6 month emergency fund, contributes to retirement, and provides a buffer for unexpected expenses.