Savings Rate Calculator
Your savings rate is the most powerful lever for early retirement. See exactly how each percentage point accelerates your freedom.
Why Savings Rate Is Everything
Most financial advice focuses on investment returns. But for those pursuing FIRE, your savings rate matters far more than your returns. Here's why:
Double Effect
Higher savings = more invested AND lower expenses. Your FI number drops while your portfolio grows.
You Control It
You can't control the market. You CAN control your spending. Focus on what's in your power.
Exponential Impact
Going from 20% to 30% saves you 7+ years. Going from 50% to 60% saves another 5 years.
The Math of Savings Rate
If you save 50% of your income, you're living on half your earnings. That means you only need 12.5 years of expenses saved (at 4% withdrawal) to retire - and you're saving that amount every year. The math works in your favor from both directions.
This is why extreme savers can retire in under 10 years, while average savers work 40+ years.
Savings Rate Benchmarks
Where does your savings rate fall? Here's what each level means for your timeline:
Assumes 7% returns, 4% withdrawal rate, starting from $0
Frequently Asked Questions
What is a savings rate?
Your savings rate is the percentage of your income that you save and invest. If you earn $100,000 and save $25,000, your savings rate is 25%. This is the single most important factor in determining how quickly you can reach financial independence.
What savings rate do I need for FIRE?
The standard American savings rate is about 7%. To retire in 30 years, you need about 25%. For early retirement in 15-20 years, aim for 40-50%. Extreme early retirement (10 years) requires 60-70%+.
How does savings rate affect retirement timing?
Savings rate has a double effect: 1) You accumulate wealth faster, and 2) Lower expenses mean a lower FI number. A 50% savings rate is powerful because you need 12.5x expenses (not 25x income) to retire.
Should I focus on earning more or spending less?
Both help, but spending less has a double benefit: it directly increases your savings rate AND lowers your FI target. Earning more only helps if you save the extra income, not lifestyle inflate.
What about taxes in this calculation?
This calculator uses gross income for simplicity. For a more accurate picture, use your after-tax income. Your effective savings rate may be higher due to tax-advantaged accounts (401k, IRA).
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Not financial advice. This calculator is for educational purposes only and does not constitute financial, tax, or investment advice. Results are estimates based on the inputs you provide and historical data. Consult a qualified financial advisor for personalized guidance. Read our editorial guidelines.