What does this tool do?
Savings rate is the portion of income kept rather than spent. Including debt principal shows the full amount building your net worth.
The Formula
Savings rate = (Savings + Debt principal) ÷ Gross income × 100Frequently Asked Questions
What is a good savings rate?
Common targets range from 15% to 25% of gross income, depending on age and goals. A higher rate shortens the time needed to reach a target.
Should I include employer contributions?
Yes, if you want to measure total retirement saving. Keep the income figure consistent with what you include.