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Savings Rate Calculator

Find what percent of income you save.

How it is calculated

The savings rate is the share of income you keep: rate = savings ÷ income × 100. Both savings and income must be in the same currency and cover the same period, for example one month. The tool shows the answer as a percentage with two decimals. It needs an income above zero, otherwise it shows no result. It does not check that savings is smaller than income, and a negative savings figure gives a negative rate. Whether income means gross or net is your choice, but keep it the same each time you compare.

Worked example

Suppose you earn 3000 a month and put 600 aside. Divide savings by income: 600 ÷ 3000 = 0.2. Multiply by 100 to get a percentage: 0.2 × 100 = 20.00%. In other words, one currency unit in every five goes to savings.

Try this example →

Common mistakes

  • Mixing periods, such as yearly savings against monthly income. The ratio then comes out twelve times too large.
  • Switching between gross and net income from one month to the next, which makes the trend meaningless.
  • Counting debt repayments or spending on a car as savings. Only money you actually set aside belongs in the savings field.
  • Leaving out employer pension contributions in one calculation but including them in another.

Sources

About this calculator

This calculator divides the amount you save by your total income and expresses it as a percentage — savings rate = savings / income × 100 — the single number personal finance experts (like proponents of the FIRE movement) use to measure how aggressively someone is building wealth, independent of how much they actually earn.

It's used to compare progress against common benchmarks (many advisors suggest 15–20% as healthy, while FIRE-focused savers often target 50%+), to see the effect of a raise or a cut in expenses on your rate, and to set a concrete savings goal rather than an abstract dollar figure. Because it's a ratio, it makes someone earning $40,000 and saving 20% directly comparable to someone earning $200,000 and saving 20%, which raw savings amounts can't do.

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  • Editorial team

    Decide before you start what counts as savings and which income you divide by, then keep the same rule every month. Whether pension contributions, an employer match or loan principal repayments are included, and whether income is before or after tax, changes the percentage a lot, and targets you read elsewhere may be defined differently. What do you count as savings in your own budget?

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