📖 Overview
Use this tool to track your savings rate and benchmark your financial health.
⚙️ How It Works
Expresses monthly savings as a percentage of monthly gross income.
The Formula
Savings Rate = (Monthly Savings ÷ Monthly Income) × 100
💡The FIRE (Financial Independence, Retire Early) community targets 50–70% savings rates. Financial advisors commonly recommend 15–20% as a baseline.
Quick Reference
| Savings Rate | Years to Financial Independence (approx.) |
|---|---|
| 10% | ~40 years |
| 20% | ~37 years |
| 30% | ~28 years |
| 50% | ~17 years |
| 70% | ~9 years |
Practical Tips
💡 Automate savings first, then spend the remainder.
💡 Even increasing savings rate by 5% meaningfully shortens your work timeline.
Frequently Asked Questions
❓ Should savings rate use gross or net income?
Either is fine — just be consistent when comparing over time.
❓ Does 401k/pension count as savings?
Yes, employer-matched contributions are part of your effective savings rate.