This page has a step by step savings rate calculator, which will help you easily compute your savings rate to compare to your own benchmarks, to future savings goals, and to the results of others. By following the steps in the calculator, you'll have a normalized rate for both a strict savings rate - that is through your purchases and accumulation of assets - and a regular savings rate, which also includes principal pay-downs of your debt. The calculator will give you results for both gross and net savings.
Savings Rate Calculator
Just enter your information into the calculator before. All fields have to be a number (do not include commas!), but feel free to add or skip the 'cents' part, depending on how accurate you want to be.
A privacy note: we do not save any of the information you volunteer on this page. The savings rate calculator will run in your browser - it also means there is no 'save' button, so be sure you write down the results somewhere.
What Should I Do Once I Know My Savings Rate?
The best comparison for your savings rate is with your own past performance. If you know your savings rate for various years, you can see how you are doing over time - and determine if you are improving your financial situation at a sufficient pace. You can see an example on our own site by reading about our past savings rates, if you're so inclined. We tend to use the strict savings rate, but the more expansive definition including the paydown of debt is more accurate for determining how much you could save if your debt didn't exist (which presumably it will not as you get closer to financial independence).
Even calculating your savings rate for just one year is useful. With just a savings rate over a long enough period (a year is usually okay), a prediction for investment returns, and your current net worth, you can get an idea of how long it'll be before you are financially independent or can retire. We have a calculator for determining financial independence versus savings rates.
And, of course, humans are a social species! If you do decide you want to compare yourself to others, we have calculators which allow that:
- Savings Rate by Age Calculator (America, 2013 Data)
- Savings Rate by Income Calculator (America, 2013 Data)
We hope this helps you remember all of your sources of income and gives you more insight into your own finances. Now you're prepared to argue over whether gross or net savings is the proper way to measure your rate... but, it's net (of course), right?
Enjoy the savings rate calculator!