How to Calculate Your Monthly Recurring Expenses

This post was updated on June 10, 2026

Recurring expenses are also known as fixed expenses. I prefer the term ‘recurring’ vs. ‘fixed,’ as you do have some control over the ‘fixed’ amount you pay each month. Once you have set up your payroll deductions to maximize your pre-tax benefit accounts, the next step is to calculate all your recurring expenses.

Think About All The Recurring Bills You Pay Every Month Or At Other Intervals

For most individuals, these include mortgage or rent payments, real estate taxes, homeowners’ insurance, utilities, car payments, car insurance, professional fees, and student loans.

• How to budget when you get paid weekly
• How to budget when you get paid bi-weekly 

Make A List Of All Your Fixed Monthly Recurring Expenses

These are bills that are paid monthly, typically for the same amount. These are items like your mortgage or rent payment, cell phone, Internet/Cable TV, and subscription services.

How To Account for Variable Recurring Expenses

The chart above shows that most recurring expenses are the same amount each month and are paid monthly. However, utility bills can vary each month based on the season. So, electric costs would be higher in the summer, and natural gas costs would be higher in the winter months. To make the funding process easier, I suggest you go back to the last calendar year and calculate the total amount you paid for each utility. The chart below shows that the annual cost of electricity is $900, and the annual cost of natural gas is also $900. Therefore, the monthly blended amount for electricity and heat is $75.00.

• How my cash flow system began over 20 years ago
• How I reconcile my recurring expenses account 

How To Account for Periodic Expenses

Periodic expenses are constant but are not paid monthly. Examples are real estate taxes, homeowner’s insurance, life insurance, and car insurance. Let’s say your car insurance is due every 6 months. So, for car insurance, your monthly budget amount is $100 ($600/6 months). The car insurance company would be happy to set up a monthly payment plan and charge you a $5.00 fee for doing so. I prefer to keep my money in the bank, make 2 payments a year vs. 12, and not pay them $60 a year in payment fees.

Monthly Debt Payments, excluding your Mortgage

Recurring expenses also include your monthly debt payments. These payments are typically car loans/leases, student loans, home equity loans, and credit card payments. Note: exclude your mortgage payment, as we included that above as a periodic expense.

Calculate Your Total Monthly Recurring Expenses

Total your monthly amount for fixed, variable, and periodic expenses. Now add your monthly debt payment total to this amount. Let’s assume the total monthly amount to cover all your recurring expenses is $1,900

Calculate Your Recurring Expenses Per Paycheck

Now we need to calculate your recurring expenses per paycheck. If you are paid weekly, then the amount of recurring expenses per pay is $475 ($1,900/4). If you are paid twice a month on the 15th and 31st or paid every other week, then the amount of your recurring expenses per pay is $950 ($1,900/2).

For those paid weekly and bi-weekly, you will have months when you get an extra paycheck. Think of these extra pay months as a margin of safety, just in case you go off plan. If you receive any bonuses, they should also be treated as a margin of safety.

Now that you know your recurring expenses per paycheck, you are ready to move to Step #3.