Personal Savings Rate Calculator
Calculate how much of your after-tax income you are actually keeping.
Your Monthly Savings:
$0.00
Your Savings Rate:
0.00%
Understanding Your Personal Savings Rate
Your personal savings rate is one of the most important metrics in personal finance. It represents the percentage of your disposable (after-tax) income that you save or invest rather than spend on consumption.
The Formula
Savings Rate = [(Monthly After-Tax Income – Monthly Expenses) / Monthly After-Tax Income] x 100
Why Your Savings Rate Matters
Unlike your net worth or your salary, your savings rate tells you how efficiently you are living relative to your means. A high savings rate accelerates the path to financial independence because it does two things simultaneously:
- It increases the amount of capital you have available to invest.
- It proves you can live comfortably on a smaller portion of your income, reducing the amount you'll need to sustain yourself in retirement.
Benchmark Examples
| Category | Rate | Financial Health |
|---|---|---|
| Minimum Target | 10% – 15% | Standard for traditional retirement |
| Aggressive | 20% – 35% | Strong wealth building |
| FIRE Path | 50%+ | Early retirement possible in <15 years |
Practical Example
If you take home $4,000 a month after taxes and your total expenses (rent, food, utilities, entertainment) equal $3,200, your math looks like this:
$4,000 – $3,200 = $800 saved.
($800 / $4,000) * 100 = 20% Savings Rate.