Savings

Savings rate calculator

Calculate what percentage of your income you're saving each month, and see how many years it would take, at that pace, to reach financial independence — the point where your investments could cover your expenses.

Net monthly income

Monthly expenses

Current savings and investments

What you've already built up toward this goal

Expected real annual return

From your investments, already net of inflation

Resets these values back to their defaults.

Your savings rate

30%

$750

You save per month

$9,000

You save per year

Years to financial independence

24 years and 5 months

Using the 25x rule: you'd need a net worth of $525,000

Years to financial independence by savings rate

Your current savings rate determines how many years you need to work before your investments can cover your expenses. Small increases now have a bigger long-term effect than they seem to.

Why your savings rate matters more than your salary

Two people can earn the same and end up with completely different financial futures, depending on what percentage they save — not how much they earn in absolute terms. Earning more helps, but if expenses rise at the same pace as income, the savings rate doesn't improve. It's the percentage, not the amount, that determines how many years you need to work before you can rely on your savings instead of your salary.

What financial independence is, and the 4% rule

Financial independence is the point where your investments generate enough to cover your expenses without needing to work. A common way to estimate it is the "4% rule": withdrawing 4% of your invested net worth each year is historically unlikely to deplete it over the long run. That works out to needing roughly 25 times your annual expenses — the target this calculator uses.

Why the chart changes so much between rates

The effect isn't linear: going from a 10% to a 20% savings rate doesn't cut the years in half — it cuts them by much more, because you're saving more each month while still spending (and therefore needing) the same amount. That's why small increases in your savings rate have an outsized effect on how long you need to work.

This calculator's assumptions

We assume a constant real return (already adjusted for inflation) for the whole period, which never happens exactly like that in practice — markets go up and down. Treat this as a long-term, directional estimate rather than an exact prediction, and revisit it occasionally as your income, expenses or savings change.

Frequently asked questions

Should I use gross or net income?

Use your net income — what you actually receive after taxes — since that's the real money you decide how to spend or save.

Should pension or retirement-plan contributions count as savings?

Yes, if that money is invested and you also include it as part of "what you already have saved". If you don't include it there, don't count it in your monthly savings either, so it isn't double-counted or left out entirely.

What return rate should I use?

A common figure for a diversified, long-term portfolio, net of inflation, is roughly 4-7% real annually, but it's an assumption, not a guarantee. Try a few different values to see how the result changes rather than relying on a single number.

Why does my result say I'd never reach financial independence?

If your monthly savings are 0 or negative, there's no way to build wealth with your current numbers, regardless of the return rate. Check your expenses first — our family budget calculator can help you see where the money is going.

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