Monthly Budget Planner

Budget Calculator UK 2025

The only free UK budget calculator with irregular income support, sinking funds, a method switcher, and a savings goal timeline. No sign-up. No ads.

50/30/20 · Zero-Based · Pay Yourself FirstIrregular income modeSinking fundsSavings goal countdownLive pie chart

Budgeting Method

Income Type

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💰 Sinking Funds — Annual Expenses

Enter the yearly total — we convert to monthly automatically

£/yr
£/yr
£/yr

➕ Custom Expenses

Savings Goal

— we'll tell you when you'll hit it
£

The 50/30/20 Budget Rule

50%

Needs

  • Rent / mortgage
  • Council tax
  • Utilities
  • Groceries
  • Insurance
  • Minimum debt payments
  • Childcare

30%

Wants

  • Dining out
  • Entertainment
  • Holidays
  • Gym
  • Subscriptions
  • Clothing
  • Hobbies

20%

Savings & Debt

  • Emergency fund
  • ISA / pension
  • Investments
  • Extra debt payments
  • House deposit
  • Future goals

Important: The 50/30/20 rule uses after-tax take-home pay as the base — not gross salary. If you live in London or another high cost-of-living area, your needs may legitimately exceed 50%. That's fine — adjust the percentages to what works for your situation. The framework is a guide, not a rule.

Zero-Based Budgeting

Zero-based budgeting means every pound of income is allocated to a specific category before the month begins — including savings. Income minus all allocations = exactly zero. It's the most rigorous budgeting method and is particularly powerful for people paying off debt, as it forces intentional decision-making about every pound.

Forces you to decide where every pound goes before you spend it

Excellent for aggressive debt payoff — every surplus is pre-allocated

Eliminates 'mystery spending' at the end of the month

Requires a complete budget re-do each month as income/expenses change

More time-intensive than simpler methods

Difficult to implement with genuinely irregular income

Budgeting With Irregular Income

Freelancers, contractors, commission earners, and seasonal workers face a budgeting challenge that no mainstream calculator addresses: your income varies every month. Here's the framework that works.

01

Budget from your worst month

Identify your lowest income month over the past year. Build your essential expenses budget around that figure. If you can't cover essentials on your worst month, you need to either reduce expenses or build a larger buffer first.

02

Build an income buffer first

Before aggressively saving or investing, build a 2–3 month income buffer in a separate account. This smooths out the feast-and-famine cycle. Think of it as your operating capital, not your emergency fund.

03

Use sinking funds for irregular expenses

Annual costs (car MOT, insurance renewals, Christmas, holidays) feel manageable when you divide them by 12 and save monthly. Our sinking funds section above handles this automatically.

04

Allocate surplus months intentionally

In higher-income months, follow a waterfall: (1) top up your income buffer, (2) max out tax-efficient savings (ISA, pension), (3) prepay known future expenses, (4) invest the remainder.

What Are Sinking Funds?

A sinking fund is money you set aside each month for a known future expense. Instead of being blindsided by a £600 car service or a £1,200 holiday, you save £50 or £100 per month throughout the year. The "shock" disappears.

Holiday

£100/mo

= £1,200/yr

Christmas / Gifts

£50/mo

= £600/yr

Car MOT/Service

£30/mo

= £360/yr

Home Maintenance

£100/mo

= £1,200/yr

Clothing & Shoes

£40/mo

= £480/yr

Pet Vet Bills

£50/mo

= £600/yr

Annual Insurance

£70/mo

= £840/yr

Tech / Devices

£30/mo

= £360/yr

5 Rules That Actually Work

01

Pay yourself first

Set up a standing order on payday to move savings before you can spend them. Savings you never see, you never miss.

02

Track for 30 days before setting targets

Budgets built on assumptions fail. One month of honest tracking reveals where money actually goes — usually not where you think.

03

Audit subscriptions quarterly

Most people have £50–£150/month in subscriptions they've forgotten. Review bank statements every 3 months and cancel anything unused.

04

Round up debt payments

If your minimum is £47, pay £50 or £60. Small round-ups dramatically accelerate payoff and require almost no willpower.

05

Review and adjust every month

A budget isn't a set-and-forget document. Life changes — income, expenses, goals. A 15-minute monthly review keeps you on track.

MD

M Singh CeMAP DipFA · 25+ Years UK Financial Services

Important Information

This calculator is for informational purposes only and does not constitute financial advice or a personal recommendation.

Results are estimates based on the information you provide and may not reflect your actual financial position.

You should consider seeking independent professional advice tailored to your specific circumstances before making any financial decision.