Budget & income
The one percentage that predicts financial progress
A savings rate calculator: households enter take-home income and annual savings to see their savings rate, annual spending and a financial independence target of 25 times spending.
Included on every plan, even the free Practitioner plan. No card needed.
How do I calculate my savings rate?
Divide annual savings by annual take-home income. Saving $15,000 from $75,000 is a 20% savings rate, with $60,000 spent. The FI number of 25 times spending ($1.5 million here) comes from the 4% withdrawal guideline, which is a rule of thumb, not a guarantee.
Start of the year
Clients measuring progress want a single number. Savings rate is easier to influence than investment returns, which makes it motivating.
What the client types into a search box
“am I saving enough”
How a client works through it
Enter take-home income
Annual net income.
Enter annual savings
Everything saved or invested.
See the rate
Savings rate and annual spending.
See the FI number
25 times annual spending.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
Income and savings show capacity and habits. Low rates suggest budgeting help; high rates suggest investment and early-retirement planning.
Savings rate and FI number
Savings Rate is the share of take-home pay saved. Annual Spending is the rest. FI Number (25x Spending) is a long-run target based on the 4% guideline.
Lower spending raises the savings rate and lowers the target at the same time.
Results shown: Savings Rate · Annual Spending · FI Number (25x Spending) · Annual Savings.
Why planners like the savings rate
It connects budget, goals and retirement in one figure. Prospects who calculate it are engaged and ready to plan.
CPA firms can show how pre-tax savings raise the rate at lower cost.
Follow-ups this request opens
- Set a savings target tied to goals
- Use pre-tax accounts to save more efficiently
- Build an investment plan for savings
- Model financial independence timing
What this calculator leaves out
- 4% rule is a guideline only.
- Uses take-home income.
- Employer contributions only if included.
- No return or inflation modeling.
Platform disclaimer shown under the calculator: Estimates only. The 25× rule (4% withdrawal) is a guideline, not a guarantee. Returns and spending vary.
Compliance note for firms
Present FI targets as rules of thumb. Retirement income advice should consider taxes, Social Security and longevity, which this tool does not.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Savings rate
- The share of your income that you save: annual savings divided by annual take-home income. Saving $20,000 from $80,000 is a 25% savings rate. This calculator measures it against after-tax income; some people use gross income instead, which gives a lower percentage for the same habits, so compare like with like.
- FI number
- The nest egg estimated to support your current spending indefinitely, figured here as 25 times annual spending. It comes from the 4% withdrawal guideline, since 4% of a balance 25 times your spending equals one year of spending. It is a planning guideline, not a guarantee, and ignores taxes and changes in spending.
- Annual spending
- Take-home income minus annual savings: what you actually live on each year. It is the figure your savings must eventually replace, so lowering it works twice, since it raises your savings rate and shrinks the FI number at the same time. Irregular costs such as car replacement or travel belong in it.
- 4% withdrawal guideline
- A rule of thumb that withdrawing about 4% of a portfolio in the first year, then adjusting for inflation, has historically lasted through a long retirement. This calculator uses it only to set the 25× FI number. It is a guideline based on past market history, not a guarantee, and results depend on returns, fees and the length of retirement.
- Take-home income
- Your income after taxes and payroll deductions, the amount that actually reaches your bank account. If part of your saving happens through pre-tax payroll deductions, such as a 401(k), add those contributions to both take-home income and savings so the savings rate reflects everything you set aside.
- Financial independence
- The point at which your investments can cover your living costs without income from work. In this calculator it is reached when savings equal the FI number. The higher your savings rate, the faster you get there, because you are both investing more and needing less to live on.
In our glossary: Withdrawal rate
Savings Rate calculator: questions from firms and clients
What's a good savings rate?
Many planners suggest 15% or more for retirement; higher rates shorten the path.
Should 401(k) contributions count?
Yes, including employer match if you add it to income consistently.
What is the FI number?
25 times annual spending, based on the 4% guideline.
Is the 4% rule safe?
It's a historical guideline, not a guarantee.
Gross or net income?
This calculator uses take-home income.
How do I raise my rate?
Spend less, earn more or automate savings.
How long until FI?
See the FIRE calculator.
Which plan includes it?
Every plan, including the free Practitioner plan, which runs up to 5 calculators at once alongside the other household planning tools. Firm (up to 50) and Network (no cap) add webhooks and white-label. See pricing.
No question matches that filter. Clear it to see them all, search the whole site, or ask us directly; we reply within one business day.
Next entry
Answer the January question before the client calls
Embed the Savings Rate calculator on your firm's site in an afternoon and receive requests with the numbers already filled in.
Firm and Network plans include a 14-day trial. Cancel before it ends and you pay nothing.