A simple budget spreadsheet needs just two things: a log where you record every expense with a date, category and amount, and a summary that totals each category and compares it with a planned amount. Google Sheets can do both with a handful of formulas, mainly SUMIFS, and you can set it up in under an hour.
This is general information about spreadsheets, not financial advice.
Plan the layout before you type
The most common reason budget sheets fall apart is mixing data entry and reporting in one cluttered grid. Keep them apart. We suggest three tabs:
- Expenses, a plain list where one row equals one transaction.
- Budget, the summary that compares planned and actual amounts per category.
- Lists, a small tab holding your category names and any other options.
This separation means you only ever add rows in one place, and the summary updates itself.
Set up the Expenses tab
In row 1 of the Expenses tab, add the headers Date, Description, Category and Amount in columns A to D. Freeze the header row from the View menu so it stays visible as you scroll. Format column A as a date and column D as currency, using the Format menu.
Add a category drop-down
Typos are the enemy of totals, because “Groceries” and “Grocery” will be counted separately. On the Lists tab, type your categories down column A, such as Rent, Groceries, Transport, Software, Insurance and Savings. Back on Expenses, select column C from row 2 down, choose Data, then Data validation, add a rule, and set the criteria to Drop-down (from a range) pointing at Lists!A2:A. Now every entry is picked from your list.
Keep amounts consistent
Decide whether expenses are positive numbers or negative ones and stick to it. Positive amounts for spending are easier for beginners. If you also track income, give it its own category and subtract it when you build the summary, or keep it on a separate tab.
Summarize your simple budget spreadsheet with SUMIFS
On the Budget tab, list the same categories down column A. Put a month in cell B1, typed as the first day of the month and formatted as Month and year. The headers could be Category in A, Planned in B, Actual in C and Remaining in D.
In the Actual column, use SUMIFS, which adds amounts that meet several conditions:
=SUMIFS(Expenses!$D:$D, Expenses!$C:$C, $A3, Expenses!$A:$A, ">="&$B$1, Expenses!$A:$A, "<"&EDATE($B$1, 1))
Read it from left to right: add the amounts in column D, where the category in column C matches this row, and the date is on or after the first of the month and before the first of the next month. EDATE adds one month to a date. Copy the formula down for every category. Changing the month in B1 then updates the whole sheet.
In Remaining, use =B3-C3 for each row. Add a total row at the bottom with =SUM(B3:B10) and the same for the other columns. If you want to review how these functions fit together, see our beginner formulas guide.
Make it easier to read
Color should carry meaning. Select the Remaining column, choose Format, then Conditional formatting, and set a rule so negative numbers turn red. That way an overspent category is visible at a glance. You can also add a simple bar chart of Planned against Actual through Insert, then Chart.
A progress cell is a nice touch. In a spare cell, =IFERROR(C3/B3, 0) shows the share of the plan used for a category. Format it as a percentage, and you can see how far through a category you are.
Plan amounts that match real life
A budget only helps if the planned amounts are realistic. Look at your last two or three months of spending before filling in the Planned column, and be honest about irregular costs such as annual subscriptions, taxes or repairs. A simple approach is to divide those yearly costs by twelve and include them as a monthly line, so they do not arrive as a surprise.
If you are self-employed, keep business and personal categories distinct, and consider a category for money set aside for tax. Check the rules that apply where you live or ask an accountant, since this sheet cannot tell you what you owe.
Keep the habit going
A spreadsheet is only as good as its data, so set a regular time to update it. Once a week, spend ten minutes adding receipts and card transactions to the Expenses tab. Many banks let you download transactions as a CSV file, which you can paste into the Expenses tab. If you do, check dates and amounts are recognized properly, and use the steps in our guide to cleaning messy data when they are not.
Once the basics work, you can extend the sheet. A pivot table, found under Insert, can summarize spending by month and category with no formulas, and a QUERY formula can produce custom reports. If you track clients or invoices as well, the approach in our simple CRM in Google Sheets uses the same one-row-per-record idea. You can find more in our spreadsheets category.
Where to start
Create the three tabs, add six categories and enter this week’s expenses by hand. Add the SUMIFS formula for just one category and check it against a manual total. Once you trust one row, copy it down. A small sheet you use every week beats a detailed one you abandon after a fortnight.
Frequently asked questions
What formula should I use for budget totals by category?
SUMIFS works well because it adds amounts that match a category and a date range. SUMIF is enough if you only need category totals.
Should I use one sheet per month?
Usually one Expenses tab with a date column is easier. Your summary can then filter by month using SUMIFS, so you do not copy tabs.
How do I stop category typos from breaking my totals?
Use Data validation with a drop-down list of categories on the Expenses tab so every entry matches exactly.
Can I import bank transactions into the sheet?
Many banks offer CSV downloads that you can paste or import into Sheets. Check dates and amounts after importing, and clean anything that did not convert.
