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How to Create an Excel Budget

Here is a guide on how to make a budget in Excel. Making a budget is a useful aid to get a solid overview of your personal finances, or the finances of a company.

A budget consists mainly of the quite simple arithmetic operations addition and subtraction. This is something a spreadsheet can do for you with ease.

Excel Instruction

Making a Budget Spreadsheet

1.
Divide your different income and expenses into separate categories. These categories will depend on your sources of income (or the company’s). Do the same with your expenses.
2.
Enter the amounts for each category.
3.
Sum your income, and then your expenses.
4.
Lastly, calculate the projected surplus or deficit by subtracting expenses from income.

Example 1

Erica Clementine is making an overview of all the income and expenses she expects in a certain month. She needs your help to use Excel to create a budget.

1.
Below you have categorized Erica Clementine’s various income sources and expenses.





Income

Amount

Expenses

Amount





Bookstore (part time)

$240

Bus card

$68





Dog sitting

$80

Phone subscription

$39.90





Monthly allowance

$50

Food and snacks

$100





Clothes and shoes

$50





Entertainment

$35





Other

$50





2.
Enter these numbers into Excel:

Spreadsheet in Excel presenting income and expenses

3.
Eventually, sum all the income and expenses, and find Erica Clementine’s surplus/deficit:

Spreadsheet in Excel summarizing income and expenses

Here are the formulas used for each cell.

Spreadsheet in Excel presenting formulas used for summarizing

Note! Notice that Erica Clementine’s budget had a surplus because the number in cell  B11 is positive. You should always set up budgets with a surplus.

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How to Create an Accounting Spreadsheet in Excel