What the ratio tells you
The ratio is total spending divided by take-home pay. It gives one number you can track month to month. If it rises, look at the category that grew. If it is above 100 percent, you are spending more than you earn that month.
How to use it
Calculate the ratio at the end of each month and compare it with the last few months. Set a small target to lower it by a few points, then check the category totals to see where to start.
Questions people ask
What is a good expense ratio?
There is no single right figure. A lower ratio leaves more room for savings. Compare it with your own past months rather than a fixed number.
Should I include EMIs and bills?
Yes. Include all spending so the ratio shows the true share of your salary.
Does it store my numbers?
No. It runs in your browser and nothing is saved.