How to Make a Budget in Excel or Google Sheets Step by Step

To make a budget in Excel or Google Sheets, create columns for each category, planned amount, actual amount, and difference; add income and expense totals; then use formulas to calculate how much remains. You will need a spreadsheet, a month of income and expense estimates, and a few minutes to enter them. The result is a reusable monthly plan that makes it easier to spot overspending and adjust upcoming expenses.

What You’ll Need

Microsoft Excel for Microsoft 365 on Windows, or Google Sheets in a web browser. The formulas below work in both.
A list of expected income and spending categories. Recent bills or account statements can help you estimate amounts, but enter only the information you need.
Your preferred currency and a month to budget for. You can make a copy of the finished sheet for each new month.

Step-by-Step

Create a new spreadsheet and label it. In Excel, open a blank workbook; in Google Sheets, create a blank spreadsheet. Name it something easy to recognize, such as Monthly Budget. In cell A1, enter the month and year you are planning for. Keeping one month per sheet or tab makes it straightforward to compare plans over time.
Set up the columns. In row 3, enter Category in A3, Planned in B3, Actual in C3, and Difference in D3. Planned means what you intend to earn or spend; Actual is what you eventually receive or pay. Difference will show Actual minus Planned, so a positive expense difference means spending exceeded the plan. Make the headers bold so they stand out. In Google Sheets use Format > Bold; in Excel use Home > Bold.
Enter income categories and a total row. Put income sources in A4:A6, such as Paycheck, Other income, and Reimbursement. Enter expected amounts in B4:B6, and leave the actual column blank until money arrives. Use row 7 for Total income. You can add or remove income rows, but update the formulas so they cover the rows you use. For a simple example, planned income is 3,200 from a paycheck and 300 from other income, while actual income is 3,150 and 280.
Add expense categories and a total row. Use row 8 as a visual divider if you like. Enter expense categories in A9:A17, such as Housing, Utilities, Groceries, Transport, Insurance, Debt payment, Savings transfer, Subscriptions, and Other. Put planned amounts in B9:B17 and leave C9:C17 blank until you have actual figures. Put Total expenses in A18. Separate savings as a planned allocation if you want to track it alongside spending; make clear to yourself whether the figure means a transfer you intend to make or money already transferred.
Calculate the difference for an individual category. With Planned in column B and Actual in column C, and the first category on row 4, enter this in D4: =C4-B4. If B4 is 3200 and C4 is 3150, the result is -50, meaning actual income is 50 below plan. Copy the formula down the Difference column for the rows you want to track. In Excel, select D4 and drag the small fill handle at its lower-right corner down the column. In Sheets, use the same fill handle or copy and paste D4 into the other cells; the row references adjust automatically.
Total planned and actual income. With income amounts in B4:B6 and C4:C6 and the totals on row 7, enter this in B7: =SUM(B4:B6). The example returns 3500 from 3200 + 300 + 0. Enter this in C7: =SUM(C4:C6). With actual income of 3150, 280, and 0, it returns 3430. In D7, enter =C7-B7; the result is -70, showing actual income is 70 below the plan. The SUM function adds the amounts in the stated range.
Total planned and actual expenses. With expense amounts in B9:B17 and C9:C17 and the totals on row 18, enter =SUM(B9:B17) in B18. For the example planned amounts of 1400, 220, 500, 250, 180, 200, 300, 60, and 150, the result is 3260. Enter =SUM(C9:C17) in C18. If the corresponding actual amounts are 1400, 235, 540, 230, 180, 200, 300, 60, and 175, the result is 3320. In D18, enter =C18-B18; the result is 60, meaning expenses are 60 above the planned total. These formulas assume the category rows and total row are as described.
Show what remains after expenses. Label A20 Remaining. With total income on row 7 and total expenses on row 18, enter =B7-B18 in B20. The planned remainder is 3500 – 3260, or 240. Enter =C7-C18 in C20; the actual remainder is 3430 – 3320, or 110. Enter =C20-B20 in D20; the result is -130, because the actual remainder is 130 less than planned. A negative remainder means the entered income and allocations exceed income; check the figures and categories before relying on it.
Format the amounts as currency. Select the amount cells in columns B:D, including the total rows. In Google Sheets, choose Format > Number > Currency. In Excel for Windows, use Home > Number and select a currency format from the number-format list. Choose the correct currency symbol and decimal display for your needs. Formatting changes how a value appears, not the underlying calculation.
Make the sheet easier to review. Bold total rows and use a border or fill color to distinguish them from categories. To keep the headings visible while scrolling, in Sheets choose View > Freeze > 3 rows. In Excel for Windows choose View > Freeze Panes > Freeze Panes while a cell in row 4 is selected; this keeps the first three rows visible. You can also widen columns A:D by dragging the boundary between the column letters. Save the workbook or let Sheets save changes, then make a copy before starting the next month.

The example is only a way to check the arithmetic, not a recommended spending plan. Budget totals are estimates, and this guide is not financial, tax, investment, or legal advice. Check actual account terms with your bank or lender, and consult a qualified professional for advice about your circumstances.

Common Mistakes

Mixing planned and actual figures. Keep the two amounts in separate columns and update Actual when a transaction happens. Replacing a planned number with an actual one hides whether the plan was realistic.

Leaving out irregular costs. Annual renewals, seasonal bills, car repairs, and gifts can make a month look unexpectedly expensive. Add a category for these costs and plan an appropriate monthly amount, or record them in the month they are due.

Counting the same money twice. If you record a transfer to savings as an expense, do not also count that same transfer as a separate purchase. Choose a consistent method and label the category so you can interpret the totals later.

Using a total that misses new rows. If you insert an expense outside rows 9 through 17, the example total formula may not include it. Add categories inside the stated range or revise the SUM range to cover all expense rows.

Assuming a positive difference always means good news. The Difference column is Actual minus Planned. For an expense, a positive result means you spent more; for income, it means you received more. Read the category and the sign together.

Tips

Start with categories that are useful to you rather than trying to make a perfect chart. A short list is easier to maintain; you can split a broad category such as Other later if it regularly contains several different kinds of spending. Use consistent names month to month so comparisons remain meaningful.

Enter planned amounts before the month begins, then update actual amounts on a regular schedule, such as once a week. Waiting until the end of the month can make receipts and small purchases harder to recall. If you use imported transaction data, check for duplicates and confirm that refunds or reimbursements are represented consistently.

Keep an untouched template tab or file. Duplicate it for the next month instead of deleting formulas and rebuilding totals. If you want a quick visual warning for unusually large differences, Google Sheets offers Format > Conditional formatting; Excel for Windows offers Home > Conditional Formatting. Set a rule for the Difference cells and choose a visible format, but do not let color replace reading the number and its meaning.

Troubleshooting

A formula displays as text. Check whether the cell is formatted as plain text or whether an apostrophe or space appears before the equals sign. Set the cell to a number or automatic format, then re-enter the formula beginning with =. In Excel, press F2 and then Enter to re-commit a selected formula. On a Mac, use Control+U to edit the selected cell, then Return.

The total is too low or too high. Select the total cell and inspect the range inside SUM. For this layout, the planned expense total should include B9:B17 and no unrelated rows. Check that amounts are numbers rather than text; currency formatting alone does not convert text into numeric values. Re-enter a problem value as a number if needed.

The difference is backwards. The guide uses Actual minus Planned. If a value shows +60 for an expense, that means spending is 60 over plan, not under. Check that the formula references column C first and column B second. Avoid changing the sign convention in only some rows.

A formula copied down still points to the wrong cells. When using the fill handle, relative references should adjust by row. Compare the formula in D5 with D4; it should refer to row 5. If you pasted a fixed or manually edited reference, replace it with the row-appropriate formula and fill down again.

Amounts show no currency symbol or too many decimals. Apply the currency format again to the selected cells and check the chosen locale or symbol. This is a display issue if the underlying number and totals are correct. If the totals are also wrong, investigate whether any amount was entered as text.

Frequently Asked Questions

Can I use the same budget formulas in Excel and Google Sheets?
Yes. The SUM formulas and basic cell references in this guide work in both programs. Menu names and some display controls differ, so follow the instructions for your chosen app.

Should I make a new sheet for every month?
Either keep one tab per month in a workbook or make a fresh copy of a monthly template. A separate tab preserves past figures for comparisons, while a separate file may be simpler if you prefer to keep months apart.

What should I do if my income changes during the month?
Update the actual income cell when the money arrives and leave the planned figure unchanged if you want to see the difference from your original estimate. If you revise the plan, note the change so you can distinguish the original budget from the updated one.

How do I budget when income is irregular?
List the income sources you expect and record actual amounts as they arrive. You can use a conservative estimate based on your own records, but avoid treating uncertain income as guaranteed. Revisit planned expenses when the actual amount becomes clearer.

Can I share a Google Sheets budget?
Yes. Use the Share button in the upper-right corner and choose access for the people who need it. Review their permission level before sending a link, especially if the sheet contains personal financial details.

Is this a financial recommendation?
No. It is a spreadsheet setup guide and an illustrative arithmetic example, not individualized financial, tax, investment, or legal advice. Confirm real lender terms directly with the lender and seek a qualified professional for advice about your situation.

Try it: the Date Difference Calculator: days, months, years and weekdays between two dates, with the DATEDIF formulas.

More in How-to basics

Sources: Function behaviour and menu paths: Microsoft Support documentation for Excel. Method & sources

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