Savings Rate Calculator
Your most important number on the path to financial independence
Your savings rate is the single most important factor determining when you can achieve financial independence. This calculator analyzes your income, expenses, and savings to show you exactly where you stand. See the famous "Shockingly Simple Math" chart, compare calculation methods, and benchmark against FIRE community targets.
Open Source & Transparent
All calculations are open source and verifiable on GitHub. We believe in transparency and welcome contributions to improve our tools.
Your Savings Rate
Serious Saver23.0 years
39.8%
Annual Savings
$35,850
Monthly Savings
$2,988
FIRE Number
$1.1M
FI Age
53
Income & Expenses
Monthly: $8,333
After taxes • Monthly: $6,250
What you spend to live • Monthly: $3,750
401(k), IRA, brokerage, etc.
Where Are You Saving?
Enter your annual contributions by account type for accurate savings rate calculation.
Pre-Tax Retirement
Post-Tax Retirement
Other Savings
Free Money & Other
Serious Saver
39.8%
Savings Rate
Next Tier: FIRE Seeker
Savings Breakdown
FIRE Community Benchmarks
See how your savings rate compares to FIRE community targets and the famous "Shockingly Simple Math" chart.
Getting started - better than most Americans!
Solid foundation for building wealth
Ahead of schedule for traditional retirement
On the path to early retirement
The classic FIRE target - retire in ~17 years!
Accelerated path to financial freedom
Living lean, retiring soon!
Elite savings rate - FI in under a decade
Remarkable discipline - FI in ~5 years
Key Insights
Savings Rate by Calculation Method
Different methods produce different rates. The FIRE community typically uses the "post-tax-adjusted" method.
35.9%
Savings as percentage of gross (pre-tax) income
Total Savings ÷ Gross Income
47.8%
Savings as percentage of net (after-tax) income
Total Savings ÷ Net Income
39.8%
FIRE community standard - accounts for pre-tax contributions correctly
Total Savings ÷ (Net Income + Pre-Tax Contributions)
Why Savings Rate Is Your Most Important Number
Your savings rate is the percentage of your income that you save rather than spend. Unlike income level, which matters less than most people think, your savings rate directly determines how many years until you achieve financial independence—the point where your investments can cover your living expenses indefinitely.
The math is elegant: someone earning $50,000 who saves 50% reaches financial independence in the same number of years as someone earning $500,000 who saves 50%. Your income determines how much you can save in absolute terms, but your rate determines your timeline to freedom.
The "Shockingly Simple Math" of Early Retirement
This famous concept, popularized by Mr. Money Mustache, shows the relationship between savings rate and years to retirement:
51
Years
@ 10% rate
25
Years
@ 30% rate
17
Years
@ 50% rate
7
Years
@ 75% rate
Assumptions: Starting from $0, 5% real (inflation-adjusted) investment returns, 4% safe withdrawal rate.
How to Calculate Savings Rate
There are several valid ways to calculate your savings rate. The FIRE community has debated this extensively, and different methods serve different purposes:
Gross Income Method
Savings Rate = Total Savings ÷ Gross Income
The simplest method, using pre-tax income. Easy to calculate but doesn't account for taxes, which you can't actually spend.
Net Income Method
Savings Rate = Total Savings ÷ Net (Take-Home) Income
Uses after-tax income. More reflective of what you actually have to work with, but may undercount if you have significant pre-tax retirement contributions.
FIRE Community Standard
Recommended Savings Rate = Total Savings ÷ (Net Income + Pre-Tax Savings)
This method adds pre-tax retirement contributions back to net income before calculating. It's the most accurate for FIRE planning because it treats all savings equally, whether they come from pre-tax or post-tax sources.
FIRE Community Benchmarks
The FIRE (Financial Independence, Retire Early) community has established informal tiers based on savings rates:
| Tier | Savings Rate | Years to FI | Description |
|---|---|---|---|
| Starting | 5-15% | 43-66 years | Better than average American, but traditional retirement age |
| Solid | 15-30% | 25-43 years | On track for comfortable retirement |
| Great | 30-50% | 17-25 years | Early retirement is achievable |
| Excellent | 50-65% | 10-17 years | Serious FIRE territory |
| Exceptional | 65-75% | 7-10 years | Very aggressive, FIRE in under a decade |
| Legendary | 75%+ | <7 years | Extreme optimization, single-digit years to FI |
Note: Years to FI assumes starting from $0 with 5% real returns and 4% withdrawal rate. Your existing savings will accelerate this timeline.
The 4% Rule & Your FIRE Number
The 4% rule (also called the "safe withdrawal rate") comes from the Trinity Study. It found that withdrawing 4% of your portfolio in year one, then adjusting for inflation each year, historically survived 30+ year retirements in most market conditions.
Calculating Your FIRE Number
FIRE Number = Annual Expenses × 25
If you spend $40,000/year, your FIRE number is $1,000,000 (because $1M × 4% = $40K)
Adjusting for Your Risk Tolerance
- • 3%: More conservative (33× expenses)
- • 4%: Standard rule (25× expenses)
- • 5%: More aggressive (20× expenses)
Tip: Our calculator uses the 4% rule by default but lets you adjust the withdrawal rate to see how it affects your timeline.
What Counts Toward Your Savings Rate?
Pre-Tax Retirement Accounts
401(k), 403(b), Traditional IRA, SEP-IRA, SIMPLE IRA. Your contributions reduce taxable income now.
Post-Tax Retirement Accounts
Roth IRA, Roth 401(k), Mega Backdoor Roth. Contributions are after-tax but grow tax-free.
Tax-Advantaged Accounts
HSA (Health Savings Account). Triple tax-advantaged: deductible, grows tax-free, tax-free withdrawals for medical.
Taxable Brokerage Accounts
Regular investment accounts, index funds, individual stocks. No contribution limits but no tax advantages.
Employer Contributions
401(k) matching, profit sharing, employer HSA contributions. Count this as savings—it's free money toward your goal!
What doesn't count: Mortgage principal payments (you can't easily access home equity), savings for near-term goals (emergency fund, car fund, vacation), paying down debt (though that's still valuable).
Frequently Asked Questions
What is a good savings rate for financial independence? ▼
A 15-20% savings rate is considered good for traditional retirement at 65. For early retirement (FIRE), aim for 50% or higher. At a 50% savings rate with 5% real returns, you can reach FI in about 17 years. At 75%, you can reach FI in under 7 years. Our calculator shows exactly how your savings rate affects your timeline.
How do you calculate savings rate? ▼
There are multiple methods: Gross Income Method (savings ÷ gross income), Net Income Method (savings ÷ take-home pay), and the FIRE Community Standard (adjusted for taxes on contributions). The FIRE standard adds pre-tax savings to net income before calculating. Our calculator shows all three methods so you can compare.
What is the "Shockingly Simple Math" chart? ▼
The "Shockingly Simple Math" chart, popularized by Mr. Money Mustache, shows how your savings rate is the primary factor determining years to financial independence, regardless of income level. It demonstrates that someone earning $50K saving 50% reaches FI at the same time as someone earning $200K saving 50%. Our calculator includes this famous chart.
Should I include employer 401k match in my savings rate? ▼
Yes, employer match is definitely part of your savings and should be included when calculating your savings rate. It's "free money" that goes toward your retirement. Our calculator tracks employer match separately and includes it in your total annual savings.
What's the 4% rule and how does it relate to savings rate? ▼
The 4% rule suggests you can safely withdraw 4% of your portfolio annually in retirement (adjusting for inflation). This means your "FIRE number" is 25x your annual expenses. Your savings rate determines how quickly you reach this number. Our calculator uses 4% as the default withdrawal rate but lets you customize it.
How do I increase my savings rate? ▼
There are two levers: increase income or decrease expenses. Most FIRE practitioners focus on both—earning more through career advancement or side income, while reducing spending on housing, transportation, and lifestyle inflation. Even small improvements compound: going from 30% to 40% savings cuts years off your FI timeline.
How to Increase Your Savings Rate
Increase Income
- Negotiate raises or switch jobs strategically
- Develop high-income skills
- Start a side business or freelance
- Maximize employer benefits (match, HSA)
Decrease Expenses
- Optimize the "big three": housing, transport, food
- Avoid lifestyle inflation when income increases
- Cut subscriptions and recurring expenses
- Track spending to find leaks
The power move: When you get a raise, save 50%+ of it instead of increasing lifestyle. This keeps expenses low while accelerating savings growth.
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