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Savings Rate Calculator
Enter your monthly income after tax and how much of it you save. You get your savings rate and how long that rate takes to reach financial independence.
| Savings rate | Years to financial independence |
|---|---|
| 10% | 51.0 years |
| 20% | 36.4 years |
| 30% | 27.7 years |
| 40% | 21.4 years |
| 50% | 16.4 years |
| 60% | 12.3 years |
| 70% | 8.7 years |
Example
Saving $1,000 of a $5,000 monthly income is a savings rate of 20%. Starting from nothing, with a 5% return after inflation and a 4% withdrawal rate, that reaches financial independence in 36.4 years.
How the savings rate calculator works
Your savings rate is the share of take-home pay you keep: savings rate = savings / income after tax.
The time to financial independence depends only on that rate and on investment returns, not on how much you earn. A higher rate means more invested each year and a smaller target, because the target is based on what you spend.
The table assumes you start with nothing and keep the same rate throughout. Existing savings shorten the time.
Common questions
What is a good savings rate?
Common guidance is 15% to 20% of income for a traditional retirement age. People aiming to retire early often save 40% or more.
Do pension contributions count?
Yes. Add your own and your employer’s contributions to both savings and income for the most accurate rate.
Why does a small change in rate matter so much?
Because it works on both sides. Moving from 10% to 20% doubles what you invest and also cuts the spending your investments must replace, which removes many years from the wait.