What Is a Savings Rate and How Should You Calculate It?
A clear explanation of savings rates, including what to count and how to make the number useful.
Saving guide
Savings Rates & Goals
Set realistic savings rates, measure progress, and connect monthly transfers to a defined goal.
All Savings Rates & Goals
3 stories in this guide.
How to Calculate Your Monthly Savings Rate
A savings rate measures how much of your income you are setting aside rather than spending. It can be a useful way to evaluate progress because the percentage accounts for changes in income that a raw savings amount may hide. The basic calculation is simple:...
How to Set a Realistic Savings Rate
A savings rate is simply the portion of income you choose to set aside rather than spend. The concept sounds straightforward, but choosing a realistic target is more useful than copying a percentage from someone else's financial plan. Start by defining the income figure you...