Expense Calculator



 
 

Expenses Calculator

Use this expense calculator to total your living expenses and show them as a percentage of your household income. It shows you:

  • How much you spend for each category (food, clothing, etc.).
  • What percent of your income goes to each category.
  • Your total expenses relative to income.
  • What percent of income is left for savings.
  • How to apply the envelope strategy.
  • Works for any time period (monthly, annually).

Just enter the income for the period you will be entering expenses for (monthly, annual) along with the name and amount for each expense category. The calculator does the rest.

This works great in tandem with the budget calculator to show how your spending compares with national averages and recommended percentages.

Finally, if this calculator helped you then please let your friends know with a like, tweet, or +1. Thanks for your support!

Enter your income for whatever time-period you will be entering expense amounts for:
Expense Category Name Periodic Amount Percentage
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Totals:
If you are using the "Envelope System" to manage your money, enter an amount of cash below to disperse to your envelopes and the calculator will determine how much cash to place in each of the above expense envelopes.
Disbursement Amount:

Managing Monthly Living Expenses

Budgeting for monthly living expenses is a simple input-output equation.

A certain amount of money comes in – that’s your income. The amount you spend every month is your living expenses or outflow. Plug these expenses into a calculator to determine if net savings results because money is left over or debt because you have more month than money.

This expense calculator just makes this process easier by organizing your household expenses into categories and expressing them as a percentage of the monthly total.

Your objective is to plan your spending on a weekly or monthly basis so that you can stay within budget and build wealth through saving instead of building debt through spending.

Plan Your Living Expenses

The first step for managing your expenses is creating a proper plan for your estimated regular expenses. It’s important to put things down on paper or a digital planner to keep track of what you will spend your money on.

Second, make a list of your actual expenses so you will know where your money is going. The reason people have so much trouble handling their expenses is because they have no idea what their expenses really are. If you are conscious of how you’re spending your money, you will see clearly how much money is going toward things you can do without and which expenses can be easily cut back.

Lastly, allocate money for every expense. Some people use the envelope method for allocating money for each expense and some maintain separate accounts for drawing expenses. No matter how you do it, it’s important to find a system that works for you and stick to it.

Cut Your Monthly Expenses

If you find yourself with more month than money there are really only two solutions. You must either increase your income or reduce expenses until your budget balances. While both options are possible, most people find the latter is the quickest and easiest path to a balanced budget.

Start by organizing your expenses using this calculator. Identify which expenses are necessary and which ones you can live without. Then rank your expenses according to priority. It’s very important to prioritize your expenses from top priority to medium priority and then low priority. Top priority expenses are necessities like rent, utilities, and food. Optional expenses are entertainment, magazine subscriptions, and anything unnecessary.

Get creative when looking to cut expenses. Look for ways to get greater value from your money rather than just trying to live without. For example, you can borrow a book from the library rather than buying it. This gives you the same value without paying a dime. Eat whole foods which are cheaper and more nutritious than processed foods. A characteristic of wealth builders is they learn how to maximize the value they get from their actual expenses.

Sometimes the biggest budget impact can be made from changing just a few large-ticket living expenses. For example, do you really need your own 2 bedroom apartment or could you find happiness sharing a place? Do you need your own car or would public transportation be just fine? Just a few changes to the largest monthly expenses can have a huge impact on how your budget calculates out.

Financial Self-Discipline

If this expenses calculator is showing your budget problem is in all the small details then don’t despair. One favorite strategy is to make a shopping list before you go to the store and stick to it. This is especially helpful to impulse buyers. A shopping list gives you a clear idea of what you truly need and eliminates unnecessary purchases. Without self-discipline, you can be tempted to buy things on credit and get into debt.

Again, just look at the expenses calculator to and find your problem areas so you can identify better ways to control your budget. Expense planning is not rocket science, but you need to discipline yourself to obtain financial freedom.

Expense Calculator Term Definitions

  • Income: The amount of money you bring in weekly/monthly/annually.
  • Expense: The cost you spend every month for your needs.
  • Periodic Amount: The amount you spend each period for each type of expense.
  • Expense Percentage: The percentage of the specific expense when compared to your total income

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