How to Create a Budget Calculator

Create a calculator to track your budget needs.

While you can usually find computer software to figure personal finances, making your own calculator online allows you to be creative and versatile in developing a budget suited for your specific needs. You can design your own categories, add tags and set up calculations that offer you the best financial picture for your budget. With online software sometimes being limiting and difficult to choose from, it is relatively easy to create your own budget calculator to describe your individual financial situation.

Things You'll Need

• Computer
• Internet access
• Document template
• Income records
• Expense records

Instructions

1. Open a new page template in your spreadsheet software program. If you do not have this type of software application, you can sign up for an account with Google docs, provided you have internet access, and open a new document there.

2. Title your new document Budget Calculator, Budget Planner or another name of your choosing.

3. Create three column headings listed as "Month/ Year," "Budget Goal" and "Budget Actual" in order from left at the top of your calculator.

4. Title the top row of your calculator "Income," starting at the left below your column headings, and list all forms of income you receive during your budget period. Include tags such as salary, commissions and bonuses, as well as other outside forms of income like business, real estate or investment earnings.

5. Make a heading titled "Other" to add any unexpected earnings to your category and finish your category with a row heading listed as "Subtotal" to calculate your total earnings.

6. Divide your expenses into categories that reflect your budget goals and payment priorities. For instance, group your expenses into categories such as home, auto and entertainment for detailed expenditures, or prioritize by must pays, family needs and discretionary income for simple budget tracking.

7. List all your expenditures on a separate sheet and then group each one under an appropriate expense category. Complete your expense categories with headings titled "Other" and "Subtotal," just as before, to allow for additional expenses and calculate your totals.

8. Create headings for "Total Income," "Total Expenses" and "Balance" at the bottom of your budget calculator.

9. Type in your estimated income and expense amounts under your "Budget Goal" column first, then use your "Budget Actual" column for recording your true numbers for tracking purposes to allow for adjustments.

10. Click the "Sum Function" at the top of your document tools and choose "Add." Follow the instructions to set formulas to add amounts in both columns to get totals for each subcategory and then set a formula to add those together to get your overall income and expense totals. Set your final formula to subtract your total expenses from your total income to calculate an overall balance for your budget.

Tips & Warnings

• Round your dollar amounts up for expenses and down for income to allow for easier monitoring and to keep you from overextending your budget.

• Design your categories around financial goals you set for yourself and place the ones you prioritize most at the top to ensure you are focusing on achieving those goals.

References

• "Personal Finance at your Fingertips"; Ken Little; 2007