Family budget calculator
This tool adds monthly household income and six spending categories entered by the user, then works out whether the month ends in a surplus or a shortfall. On the example figures shown, the household finishes with an estimated £300 left after £3,300 of outgoings against £3,600 of income. Every result depends entirely on the inputs entered, not any external benchmark.
How does the budget calculation work?
The tool adds up the six spending categories entered and takes the total off household take-home income.
A positive result is a surplus, money that could be saved or used to reduce debt.
A negative result is a shortfall, meaning the month costs more than the income entered.
The percentage shown is the share of income left once every category is paid.
Categories are kept broad so the form stays quick to fill in, and any category not relevant to a household can be left at zero.
What would this look like for an example household?
Take a household with take-home income of £3,600 a month.
| Category | Amount |
|---|---|
| Housing | £1,200 |
| Food | £550 |
| Childcare | £600 |
| Transport | £300 |
| Bills | £400 |
| Other | £250 |
That is £3,300 of total spending, leaving an estimated £300, about 8.3% of income.
Housing and childcare are the two largest categories in this example, so a change to either moves the result more than a change to a smaller category.
Common questions
What should a family budget include?
Start with take-home income for the whole household, then the big fixed costs: housing, food, childcare, transport and bills. A catch-all "other" category covers clothing, subscriptions, days out and anything irregular. The aim is that every pound of income is accounted for.
Should I use gross or take-home pay?
Take-home. Budget from the money that actually reaches your account after tax, National Insurance and any pension or student loan deductions, because that is what you have to spend. If you only know your gross salary, work out the net figure first.
What is a healthy amount to have left over?
There is no single number, but many guides suggest trying to keep around 10% of take-home income for savings and unexpected costs. A small surplus is a buffer. If the tool shows a shortfall, the categories need trimming or income needs to rise.
How do I handle costs that are not monthly?
Spread them across the year. Take an annual cost like car insurance or Christmas, divide by twelve, and add that to the relevant category. Budgeting monthly for yearly bills stops them landing as a shock.
Why does childcare take such a big share?
Full-time nursery is one of the largest costs for families with young children and can rival housing. Check whether you qualify for Tax-Free Childcare or the free hours, which can cut the bill substantially before it reaches the budget.
How does the budget calculation work?
The tool totals the six spending categories entered and subtracts that from household take-home income. A positive result is an estimated surplus and a negative result is an estimated shortfall. The percentage shown is the share of income left once every category is accounted for. Categories are kept broad, and any that do not apply to a household can be left at zero.
What would this look like for an example household?
On take-home income of £3,600 a month, with housing at £1,200, food at £550, childcare at £600, transport at £300, bills at £400 and other spending at £250, total outgoings are £3,300. That leaves an estimated £300, about 8.3% of income, once every category in this example is paid.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.