What is an expense calculator?

An expense calculator is an online tool you can use to build your monthly expenses into a budget. 

Having a budget that includes your expenses can give you a sense of how much money is coming in and going out each month. Understanding your financial situation helps you make better decisions and save money for the future.

When it comes to those student loans, you’ll eventually have to pay — know how to budget is a big deal.

What information do you need for an expense calculator?

A Google search will lead to several expense calculators, each with its own format and way of calculating your expenses. 

In general, they all have a few things in common. They include:

  • Your monthly salary
  • Mortgage or rent payment
  • Credit card payments
  • Personal Loans
  • Auto expenses
  • Household supplies
  • Insurance
  • Food
  • Entertainment
  • Additional miscellaneous expenses

How do I use an expense calculator?

First, you’ll want to take note of all your monthly expenses. The best way to do this is to log into your bank account and take a look at all of your recurring transactions. That will give you a sense of what you’re spending monthly. 

Some banks will also allow you to see how much you’re spending in those miscellaneous areas like entertainment, restaurants, and shopping. 

Once you have all that information, you’ll input the figures into the expense calculator. It will calculate your expenses against your salary to give you an idea of what you’re spending each month. 

You don’t need an expense calculator to create a budget, but it’s a great way to get into the zone to finally complete one. You can find various expense calculators here and here

Budgeting now is a great way to prepare yourself for all those real-world experiences that come after you graduate college. Using an expense calculator is just one way to help you get prepared.