How to Make a Budget in Excel (Step by Step)
Last updated June 2026
Quick answer
To make a budget in Excel, list monthly income in one section and expenses in another, each with Planned and Actual columns. Total each section with =SUM, then subtract total expenses from total income to see what's left. The structure takes about ten minutes to build — the steps below walk through every cell, or download our free template with the formulas already in place.
How do you build a budget in Excel?
Set up the income section
In a new workbook, type Income in cell
A1. In row 2, add the headers Item, Planned, Actual inA2:C2. List each income source in rows 3–6 (Paycheck 1, Paycheck 2, Side income), with amounts under Planned.Total your income
In
A7type Total income. InB7, sum the Planned column, then drag the fill handle right to copy it toC7.Set up the expenses section
Leave row 8 blank. Type Expenses in
A9, then headers Item, Planned, Actual, Difference inA10:D10. List one expense per row starting at row 11 — rent, groceries, utilities, subscriptions.Add the Difference formula
In
D11, subtract Actual from Planned, then copy the formula down the column. A positive result means that line is under budget.Total your expenses
Below your last expense (say row 20), type Total expenses in
A21and sum each column:=SUM(B11:B20)inB21, copied across toC21.Calculate what's left
In
A23type Left over. The formula subtracts actual expenses from actual income — this is the number your whole budget exists to show.Format the numbers as currency
Select the amount cells, then press
Ctrl+Shift+$(or choose Currency from the Number dropdown on the Home tab).Make overspending impossible to miss
Select the Difference column, then go to Home → Conditional Formatting → Highlight Cells Rules → Less Than, enter
0, and keep the red fill. Over-budget rows now flag themselves.
| What it does | Formula | Where it lives |
|---|---|---|
| Totals a section | =SUM(B3:B6) | Total row of income and expenses |
| Shows over/under per line | =B11-C11 | Each Difference cell |
| Shows what's left over | =C7-C21 | Below the expense section |
Budget against Actual, not Planned. Plans drift; the Left over formula uses column C because the only money you can save is money you actually didn't spend.
Frequently asked questions
- Does Excel have a built-in budget template?
- Yes — go to File → New and search "budget" to see Microsoft's gallery. They're attractive but harder to customize; building your own (or starting from our monthly budget template) keeps every formula visible and editable.
- How do I reuse the budget next month?
- Right-click the sheet tab, choose Move or Copy, tick Create a copy, and rename it for the new month. Clear the Actual column on the copy and you're ready to go.
- What's the 50/30/20 rule and can Excel track it?
- It's a guideline that puts 50% of after-tax income toward needs, 30% toward wants, and 20% toward savings. Add a Category column, then use
=SUMIF(E11:E20,"Needs",C11:C20)to total each category's Actual spend and compare the split against those targets. - Should I budget with gross or take-home pay?
- Take-home pay. Your budget allocates money that actually lands in your account; taxes and payroll deductions are already gone before the budget starts.