Enter monthly income and expense details
Formula used
How to use this calculator
- Enter your monthly income sources using net amounts.
- Add fixed costs first, then variable spending estimates.
- Include debt payments and your planned saving target.
- Add annual costs like repairs, tuition, or travel.
- Set optional tax and safety reserves for stability.
- Press calculate, then export results to compare scenarios.
Example data table
| Scenario | Income | Outflows | Surplus | Surplus Rate |
|---|---|---|---|---|
| Balanced Budget | ₨300,000.00 PKR | ₨265,000.00 PKR | ₨35,000.00 PKR | 11.67% |
| Higher Savings Goal | ₨300,000.00 PKR | ₨285,000.00 PKR | ₨15,000.00 PKR | 5.00% |
| Deficit Month | ₨260,000.00 PKR | ₨275,000.00 PKR | −₨15,000.00 PKR | -5.77% |
Monthly surplus benchmarks
A practical target is a surplus rate between 10% and 20% of income. For example, on 300,000 in income, that range equals 30,000 to 60,000 after planned outflows. If your surplus is below 10%, one unexpected bill can erase the month. If it is above 20%, you can accelerate savings or debt payoff while keeping lifestyle spending stable.
Income and reserve planning
This calculator separates earnings from reserves so your plan stays realistic. A tax reserve of 5% on 300,000 sets aside 15,000 before spending. A safety buffer of 3% on 265,000 outflows adds 7,950. These lines reduce stress because they fund obligations and surprises. When income varies, use your lower, repeatable month as the baseline and treat peaks as bonuses.
Fixed and variable controls
Fixed costs usually include rent, utilities, insurance, and subscriptions. Many households aim to keep fixed expenses near 40% to 55% of income, because these costs are hard to cut quickly. Variable spending—groceries, transport, dining, and health—should be tracked weekly. A 5,000 reduction in dining and a 3,000 reduction in subscriptions creates 8,000 more surplus without changing needs, and the effect compounds monthly.
Debt and savings targets
Debt payments and planned saving are treated as intentional outflows. If debt consumes 15% of income, try increasing payments by 2% to shorten payoff time, then redirect freed cash flow into savings. Many budgets use a 50/30/20 split as a reference, but your plan can be customized: a 25% saving line is achievable when fixed costs are controlled and buffers are funded first.
Scenario testing and review
Run at least three scenarios: current spending, a conservative month, and an improvement plan. Compare how a 10,000 income change or a 12,000 annual irregular expense shifts the final surplus. Recheck your numbers monthly, and quarterly review subscriptions, insurance, and debt rates. Export CSV for tracking, and keep the PDF report as a snapshot for goals, lender discussions, or household planning meetings. Consistency beats perfection in monthly budgeting practice.
FAQs
What does monthly surplus mean?
Monthly surplus is the amount left after all planned outflows are deducted from total monthly income. A positive value means you can save or invest; a negative value signals your plan needs adjustments.
Why include annual irregular expenses?
Annual costs like repairs, school fees, gifts, or travel can surprise a monthly budget. Converting them to a monthly amount (annual ÷ 12) smooths your plan and reduces sudden deficit months.
Should I enter gross or net income?
Use net, spendable income: salary after taxes and mandatory deductions. If you use gross income, set an appropriate tax reserve so the surplus reflects money you can actually allocate.
How do tax reserve and safety buffer work?
Tax reserve sets aside a percentage of income for expected taxes. Safety buffer adds a cushion based on outflows to cover price increases or small emergencies. Both help prevent overspending.
What surplus rate is considered healthy?
Many households aim for a 10%–20% surplus rate as a starting benchmark. Higher may be possible if fixed costs are low. If your rate is under 10%, focus on trimming variable spending.
How can I improve a deficit quickly?
Start with the biggest controllable category: dining, subscriptions, and transport. Pause nonessential purchases for one month, renegotiate fixed bills, and review debt terms. Even small cuts repeated monthly can restore a surplus.