Guide

How to Build a Budget in Google Sheets (Step by Step)

Build a working budget in Google Sheets from a blank sheet, the formulas included. A clear, copy-and-paste step-by-step guide for beginners.

Google Sheets is one of the best places to budget: it is free, it works on any device, it lives in your own Google account, and it never asks to connect to your bank. This guide walks you through building a simple, working budget from a blank sheet, the formulas included. At the end, if you would rather skip the build, we will point you to a ready-made one.

Why Google Sheets for budgeting

  • Free and everywhere. Any phone, tablet or computer with a browser, plus a proper mobile app.
  • Private and yours. The file sits in your own Google Drive. No third party reads your accounts, and there is nothing to subscribe to.
  • Flexible. You decide the categories and the layout. It is your budget, built your way.

The only catch is you have to set it up. So let us do that.

Step 1: Create the sheet and a simple layout

Open sheets.google.com and start a blank spreadsheet. Give it a name like "My Budget 2026". A clean starting layout:

  • Column A: Category
  • Column B: Planned (what you intend to spend or save)
  • Column C: Actual (what really happened)
  • Column D: Difference (Planned minus Actual)

Leave a few rows at the top for your income, then a block for expenses below.

Step 2: Add your income

In the first rows, list your take-home pay (and any other money in). For example, put Income in A2 and your monthly figure in B2. If you have more than one source, list each on its own row and total them:

=SUM(B2:B4)

Use your take-home pay, the amount that actually arrives after tax.

Step 3: List your expense categories

Below income, list where money goes. A solid starter set:

  • Needs: Rent or mortgage, Council tax, Utilities, Groceries, Transport, Insurance, Minimum debt payments
  • Wants: Eating out, Subscriptions, Hobbies, Shopping, Treats
  • Savings and goals: Emergency fund, Sinking funds, Pension or investments, Extra debt payments

Not sure how much to put against each? The 50/30/20 rule is a quick way to set sensible targets: roughly half on needs, a third on wants, a fifth on savings and debt.

Step 4: Add the formulas that do the work

This is what turns a list into a budget.

Total planned expenses (say your expense rows run 8 to 20):

=SUM(B8:B20)

Money left to budget (income minus planned spending):

=B2-SUM(B8:B20)

Aim to get this to zero, every pound assigned a job. That is the idea behind zero-based budgeting.

Difference per category (in D8, then copy down):

=B8-C8

A positive number means you came in under plan, negative means over.

Total actually spent:

=SUM(C8:C20)

With these four formulas you have a real budget: planned versus actual, what is left, and where you drifted.

Step 5: Make it readable

A few finishing touches make a budget you will actually open:

  • Bold your headings and totals.
  • Conditional formatting on the Difference column: green for under, red for over (Format, then Conditional formatting).
  • Freeze the top row so headings stay visible as you scroll (View, then Freeze).
  • Format the money columns as currency (Format, then Number, then Currency).

Step 6: Use it every payday

A budget only works if you return to it. Each payday, fill in the Actual column, check the difference, and adjust next month's plan. If you are not paid monthly, set it up around your pay cycle instead, our guide to budgeting by payday covers weekly and fortnightly pay.

Or skip the build

Building your own is a great way to learn, but it has limits: one tab, manual formulas, no charts, no debt or sinking-fund engine, and it breaks the moment a formula gets deleted. If you would rather have it all done properly, our All-in-One Budget Planner is a Google Sheets planner with budgeting, bills, sinking funds, debt payoff and net worth already built and automated, plus seven colour themes and an optional AI coach. It lives in your own Google account, never connects to your bank, and is a one-time purchase with no subscription. You get the privacy and ownership of a spreadsheet, without spending an evening building one.

General information only, not financial advice. For decisions about your circumstances, consider a qualified adviser.

Frequently asked questions

Is Google Sheets good for budgeting?+

Yes. It is free, works on any device, keeps your data in your own account, and never connects to your bank. The only effort is setting it up, which this guide covers.

Do I need to know spreadsheet formulas?+

Only a few. =SUM() to total a range, and simple subtraction for differences. Everything in this guide is copy-and-paste.

Is a Google Sheets budget private?+

Very. The file sits in your own Google Drive, readable only by you unless you choose to share it. There is no third-party app reading your transactions.

Should I build my own or buy a template?+

Build your own to learn the basics. Buy a ready-made planner if you want charts, multiple linked tools (bills, debt, savings) and automation without the setup work and the risk of breaking your own formulas.