How to use the Savings Rate Calculator
Enter your monthly income and your monthly spending. The result is the share of your income that you keep.
Worked example
If you bring home $4,000 a month and spend $3,200, you save $800, a savings rate of 20%. Cutting spending by $200 lifts it to 25%. Small changes add up: an extra 5% saved every month is about two and a half weeks of income set aside each year.
What counts as saving
Money moved to savings accounts, investments and extra debt repayments counts as saved. If retirement contributions come out of your pay before it reaches you, add them back to both income and savings for a fuller picture. The trend over several months matters more than any single month.
The formula
Savings rate = (income − spending) ÷ income × 100
Examples
- Income 5,000, spending 3,800
Savings rate: 24%
- Income 7,200, spending 4,100
Savings rate: 43.06%
- Income 3,200, spending 3,050
Savings rate: 4.69%
Limitations and assumptions
Uses the income and spending you enter. Decide whether you use take-home or gross income and stay consistent from month to month.
Frequently asked questions
How do I calculate my savings rate?
(Income − spending) ÷ income × 100.
What is a good savings rate?
Many planners suggest 15 to 20 percent, though your goals set the real target.
Should I use gross or net income?
Either works if you stay consistent; take-home pay is common.
Do retirement contributions count?
Yes, count them as savings.