Measuring your savings rate
Your savings rate is the share of your income that you keep instead of spend. To make it comparable over time, this calculator adds retirement contributions taken from your paycheck back onto take-home pay, so the rate reflects everything you save. Someone taking home $5,500, with $500 going to a 401(k) and another $600 saved, has a savings rate of about 18%.
Savings rate = (retirement contributions + other saving) ÷ (take-home pay + retirement contributions)
Common guidelines suggest saving at least 15% of income for retirement, and the US personal saving rate published by the Bureau of Economic Analysis has typically been in the mid single digits in recent years.
Why savings rate decides your timeline
Your savings rate does two things at once: it adds to your investments, and it shows how little you need to live on. Someone saving 50% of their income is building savings fast and also proving they can live on the other half. That is why the bars show the number of working years to financial independence falling steeply as the savings rate climbs. At 10% it is about 50 years; at 50% it is about 16.
Common questions
What is a good savings rate?
15% or more is a common target for retirement. FIRE savers often aim for 40% to 70%.
Should I use gross or net income?
Either works if you are consistent. This calculator uses take-home pay plus paycheck retirement contributions, which is how many FIRE writers measure it.
Does paying off debt count as saving?
Extra principal payments raise your net worth, so many people count them. Minimum payments are spending.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.