Home / Zero-based budget
Zero-based budget calculator
Income minus every job you give your money should equal zero. Add jobs until the meter is full — not over, not under.
Every dollar assigned?
$960
still has no job. Unassigned money tends to get spent without a decision.
How zero-based budgeting works
Percentage rules tell you roughly where money should go. A zero-based budget makes you decide exactly. You start with this month's take-home pay and hand out every dollar to a job — rent, food, a sinking fund for car repairs, savings — until nothing is left unassigned.
- List your income for the month. If it varies, use the lowest likely amount.
- Fund the essentials first: housing, food, utilities, transport, minimum debt payments.
- Add sinking funds for irregular costs you know are coming — divide the yearly cost by 12.
- Choose goals: emergency fund, extra debt payment, a holiday.
- Spend what's left on purpose as fun money until the meter hits zero.
Zero-based suits anyone who feels money “disappears”. If that is too much detail, try the 50/30/20 rule or envelope budgeting, which uses the same idea with fewer categories.
Questions people ask
What makes a budget a zero-based budget?
Income minus every planned expense, saving and debt payment equals exactly zero. It does not mean spending everything — savings are one of the jobs a dollar can have.
Is zero-based budgeting hard?
It takes longer to set up than a percentage rule because you plan every category, but it gives the most control. Most people spend 20–30 minutes at the start of each month.
What is a sinking fund?
Money set aside each month for a known irregular cost — car repairs, annual insurance, birthdays. It stops predictable expenses from feeling like emergencies.
What if I have money left over at the end of the month?
Give it a job straight away: top up the emergency fund, pay extra on debt or move it to next month’s budget.