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

Your savings rate, the percentage of your income you actually save or invest each year, is one of the most powerful numbers in personal finance, because it works on both sides at once: saving more builds your investments faster and means you need less to live on, so financial independence arrives sooner. This calculator works out that percentage from your own numbers. Enter your take-home income and the amount you save or invest each year, then tell it whether your KiwiSaver contributions are already included or need to be added separately as a combined employee and employer amount. It returns your savings rate as a percentage, along with how much you save each year, how much you spend, and what an extra five percentage points on your rate would be worth in dollars, so you can see the real effect of a small lift. The worked example on this page shows a $65,000 income with $9,750 saved, a 15% rate, and how pushing that to 20% frees up an extra $3,250 a year. Use the result to benchmark where you stand, whether you are aiming for a comfortable 10 to 20%, or a much higher rate to reach financial independence sooner, and to see how trimming spending or lifting income shifts the number that matters most. This is general information, not financial advice.

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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.

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Compound Interest Calculator: growth over time.
Budget Calculator: find more to save.

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