What is a savings rate?

Your savings rate is the share of your take-home income that you save or invest, as a percentage. It is one of the most powerful numbers in personal finance, because a higher rate both grows your savings faster and lowers the spending you need to fund.

What is a good savings rate?

There is no single right number, but lifting your rate even a few percentage points makes a big difference over time. Many people aim for 10% to 20%, and those pursuing financial independence aim much higher.

Why does the savings rate matter so much?

It works on both sides at once: saving more builds your fund faster and means you live on less, so you need a smaller fund. That double effect is why it matters more than almost any other number.

Savings Rate Calculator

This calculator works out what percentage of your income you actually save, the single most powerful number in personal finance, and shows how lifting it brings forward your goals. You enter your income and savings, and it shows your savings rate and how changes accelerate your progress toward financial independence.

Take-home income (per year)

Amount saved or invested (per year)

Include KiwiSaver contributions?

Annual KiwiSaver (yours plus employer)

of your income that you save

Saved per year$0

Spent per year$0

If you lifted it 5 points$0

A higher savings rate works on both sides: it builds your fund faster and means you live on less, so you need a smaller fund. Even a few extra percentage points compound into years off your timeline. General information, not financial advice.

How it works

The calculator divides what you save by your income to give your savings rate as a percentage, optionally including your KiwiSaver contributions. It shows what you save and spend each year, and how much more you would save by lifting your rate five percentage points. Because the rate drives both how fast your fund grows and how little you need to live on, it is the lever with the biggest effect on reaching financial independence.

Worked example

Saving $9,750 of a $65,000 take-home income is a 15% savings rate. Lifting that to 20% would save an extra $3,250 a year, which both grows your investments faster and trims the spending you need to fund, bringing your goals noticeably closer.

Related calculators

FIRE Number Calculator: your independence number.
Coast FIRE Calculator: when you can coast.
Compound Interest Calculator: growth over time.
Budget Calculator: find more to save.

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