Should I use gross or net income?

Use net/take-home for realistic budgeting. Gross can inflate the apparent savings rate.

Do extra debt payments count as saving?

Yes—extra principal reduces debt and increases net worth, so you can treat it as saving.

What’s a good savings rate?

Many aim for 15–20%+, but it depends on your goals, income stability, and debt load.

Should I include employer retirement match?

You can, but this calculator keeps it simple and focuses on your contributions.

How often should I revisit this?

Monthly or after raises/bonuses to keep savings aligned with your goals.

finance calculator

Savings Rate Calculator

Find your monthly savings rate and annualized savings from income and savings.

Results

Savings rate: 20.00%
Annual savings: $14,400 USD

How to use this calculator

Enter your monthly income and monthly savings.
Review your savings rate percentage and annualized savings.
Adjust savings to see how the rate and annual total change.

Inputs explained

Monthly income: Your take-home or budgeting income per month.
Monthly savings: Amount you set aside monthly across cash, investments, or extra debt payoff.

How it works

Savings rate = monthly savings ÷ monthly income.

Annual savings = monthly savings × 12.

Formula

Savings rate = Savings / Income
Annual savings = Savings × 12

When to use it

Checking if you hit a target savings rate (e.g., 20%+).
Planning increases after a raise or bonus.
Balancing savings with debt payoff by treating extra debt payments as “saving.”

Tips & cautions

Use net income for realistic budgeting; gross can overstate the rate.
Treat extra principal payments on debt as saving toward net worth.
Increase savings rate annually or after raises to maintain momentum.
Simple snapshot; does not model taxes or employer contributions.
Assumes consistent monthly amounts; real cash flow may vary.

Worked examples

$6,000 income, $1,200 saved

Savings rate = 20%
Annual savings = $14,400

$8,500 income, $2,000 saved

Savings rate ≈ 23.5%
Annual savings = $24,000

Deep dive

This savings rate calculator shows what percent of your income you save each month and annualizes it. Enter income and savings to see if you’re hitting targets like 15–20%+.

Use it to plan increases after raises, balance savings with debt payoff, and track progress toward financial goals.

FAQs

Should I use gross or net income?: Use net/take-home for realistic budgeting. Gross can inflate the apparent savings rate.
Do extra debt payments count as saving?: Yes—extra principal reduces debt and increases net worth, so you can treat it as saving.
What’s a good savings rate?: Many aim for 15–20%+, but it depends on your goals, income stability, and debt load.
Should I include employer retirement match?: You can, but this calculator keeps it simple and focuses on your contributions.
How often should I revisit this?: Monthly or after raises/bonuses to keep savings aligned with your goals.

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