Divide what you save by what you earn to get the savings rate that determines your time to independence.
The savings rate is the share of net income per month that amount saved per month represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small. Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where higher is better.
Savings Rate
Savings Rate = Amount saved per month ÷ Net income per month × 100
Savings Rate = Amount saved per month ÷ Net income per month × 100 The savings rate is the share of net income per month that amount saved per month represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small.
Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where higher is better.
This calculator takes 2 inputs: Amount saved per month, Net income per month. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.