How This Calculation Works
The calculator divides your total gift budget across recipients using a weighted allocation formula. You designate some recipients as "priority" (close family, partner) who receive a multiple of the regular amount.
The formula calculates the base share so that all allocations — regular and priority — add up exactly to your total budget. This prevents the common problem of overspending on a few people early in the year and having nothing left for December.
Common Mistakes to Avoid
- Forgetting occasions. Not including all occasions throughout the year — birthdays, holidays, graduations, weddings
- Hidden costs. Not budgeting for wrapping, shipping, and cards — these can add 15-20% to gift costs
- Last-minute shopping. Last-minute shopping leading to overspending out of desperation
- Priority multiplier too high. Setting the priority multiplier too high, which leaves too little for everyone else
Worked Example
Scenario: $500 annual budget, 8 total recipients, 2 priority at 2x multiplier.
Step 1: Weighted total: 6 regular + (2 x 2) = 10 shares. Per share: $500 / 10 = $50.
Step 2: Regular recipients: $50 each (6 x $50 = $300). Priority recipients: $100 each (2 x $100 = $200).
Step 3: Total: $300 + $200 = $500. Budget balanced.