Want to understand the full power of your savings rate? Read my complete guide: Why Your Savings Rate Matters More Than Investment Returns
Savings Rate Calculator #
Savings Rate Calculator
Calculate what percentage of your income you're actually saving
Include all sources of income after taxes
Include rent, food, entertainment, everything
Your Savings Rate
Note: Years to FIRE assumes 7% annual returns and 4% safe withdrawal rate (25x expenses). This is a rough estimate - actual timelines vary based on market performance, taxes, life changes, and personal circumstances.
How Do You Compare?
How to Use This Calculator #
Step 1: Enter your monthly take-home income #
This is what you actually receive after taxes. Include:
| Income Type | Include? |
|---|---|
| Salary (after tax) | ✅ Yes |
| Any side hustle income | ✅ Yes |
| Rental income | ✅ Yes |
| Investment dividends | ✅ Yes |
| Pre-tax amounts | ❌ No |
| Money you never see | ❌ No |
Step 2: Enter your monthly spending #
Be honest here. Include everything you spend:
| Category | Examples |
|---|---|
| Housing | Rent, mortgage, utilities |
| Food | Groceries, dining out |
| Transportation | Car payment, insurance, gas, transit |
| Subscriptions | Streaming, gym, software |
| Entertainment | Hobbies, travel, fun |
| Everything else | If money left your account, count it |
Step 3: Review your results #
The calculator instantly shows you:
| Result | What It Means |
|---|---|
| Savings Rate % | Percentage of income you’re keeping |
| Monthly Savings | Dollar amount saved per month |
| Annual Savings | Yearly total |
| Years to FIRE | Estimated time to financial independence |
Understanding Your Results #
The visual breakdown #
The progress bar shows exactly how your income splits between savings (green) and spending (red). If that green bar is tiny, you know what needs to change.
Benchmark comparison #
Most people save around 14%
This is the typical savings rate. It’s fine for basic retirement at 65, but won’t get you to early retirement.
Above average savers
You’re doing better than most. At this rate, you could potentially retire 5-10 years early.
Serious early retirement territory
People pursuing FIRE often hit 50% or higher. At this rate, financial independence becomes possible in 15-17 years.
Years to FIRE estimate #
This calculation assumes:
- The 4% withdrawal rule (you need 25× annual expenses saved)
- 7% annual investment returns
- Your current savings rate stays constant
It’s just an estimate, not a guarantee.
Example Calculation #
Sample Calculation:
| Input | Amount |
|---|---|
| Monthly income (after tax) | $5,000 |
| Monthly spending | $3,500 |
| Monthly savings | $1,500 |
Savings Rate: ($1,500 ÷ $5,000) × 100 = 30%
Annual Savings: $1,500 × 12 = $18,000
At 30%, you’d hit financial independence in roughly 28 years (assuming 7% returns).
What If My Number Is Low? #
Don’t panic. Most people don’t even know their savings rate exists as a metric. Just calculating it puts you ahead.
If you’re below 10%, focus on these three things:
- Track your spending for one month (awareness alone helps)
- Cut one big expense (not lattes—find a real expense like unused subscriptions or a cheaper phone plan)
- Automate savings (save before you can spend it)
Why This Calculator Matters #
Your savings rate is the single biggest lever you control on your path to financial independence.
- You can’t control the stock market
- You can’t force your boss to give you a raise. But if you get it, it usually barely covers inflation.
- But you can control how much of your income you keep
Questions or feedback? Leave a comment below—I’d love to hear about your savings rate journey!