See what share of your income you actually keep.
Savings rate is the clearest single number in a personal budget. It is the portion of income you do not spend, and it drives every long-term projection more than investment selection does.
Interactive calculator coming soon
The interactive savings rate calculator is in development. The formulas below are what it will use, and the retirement savings calculator covers the target side of the same plan.
How the estimate works
- Gross savings rate equals total annual savings divided by gross income, including employer retirement contributions.
- Net savings rate equals total annual savings divided by take-home pay after taxes and payroll deductions.
- Annual spending equals income minus savings, using the same gross or net basis.
- A rough independence horizon compares projected portfolio growth against 25 times that annual spending figure.
Pick one basis and stay with it
Gross and net savings rates are both valid, but mixing them produces misleading comparisons. Employer matches, pre-tax contributions, and debt paydown should be classified the same way every time you measure. Results are estimates only and are not financial advice.
Frequently asked questions
What is a good savings rate?
Saving 15% to 20% of gross income is a widely used benchmark for a conventional retirement timeline. Higher rates shorten the timeline substantially, and any consistent rate above zero beats an inconsistent one.
How does savings rate affect financial independence?
Your savings rate sets both how fast the portfolio grows and how little you need it to cover, so it moves the timeline from both directions. Raising a savings rate from 10% to 25% can cut decades off an estimated financial-independence date.
What is the FIRE savings rate?
People pursuing financial independence and early retirement commonly target savings rates of 40% to 70% of take-home pay. At those rates, a portfolio of roughly 25 times annual spending can be reached in about 10 to 20 years, depending on returns.