Comprehensive Calculator Guide
The 70/20/10 calculator splits your monthly take-home pay three ways: 70% for living, 20% for saving and investing, and 10% for giving or paying off debt faster. On SAR 12,000 that’s 8,400 to live on, 2,400 saved and 1,200 for giving or debt — SAR 28,800 saved a year. A simple budget for anyone who wants one without much detail.
The three parts, and 50/30/20
70% covers all spending — housing, food, transport, bills, school, fun. 20% builds an emergency fund of 3–6 months, then goes into Sharia-compliant investments. 10% goes to charity, or to clearing debt if you have any.
50/30/20 separates needs from wants; 70/20/10 lumps them together and adds a line for giving or debt. Obligatory zakat stays a separate calculation on savings above the nisab.
How to Use
- Enter your monthly take-home pay.
- Include a spouse’s income if you budget together.
- Press “Split my income” to see each part and your yearly savings.
Formula Used
Living = 70% | Saving and investing = 20% | Giving or debt = 10% of take-home pay
Practical Examples
- Example 1
- SAR 12,000: 8,400 / 2,400 / 1,200; SAR 28,800 saved a year.
- Example 2
- SAR 7,500: 5,250 / 1,500 / 750; SAR 18,000 saved a year.
Important Tips
- Move the savings share automatically on payday.
Common Mistakes to Avoid
- Saving whatever is left at month-end instead of first.
Frequently Asked Questions
- What is the 70/20/10 rule?
- 70% living, 20% saving and investing, 10% giving or debt, of take-home pay.
- How much should I save from SAR 10,000?
- SAR 2,000 a month, 24,000 a year.
- 50/30/20 or 70/20/10?
- Both save 20%; the first controls wants, the second is simpler with a giving line.