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Savings Rate Calculator

Calculate your savings rate and see roughly how many years of work it could buy back.

The estimated time to financial independence assumes you start from zero, earn a 5% return after inflation, and can live on 4% of your portfolio. It is an illustration, not a prediction.

Your savings rate

40%

You save $2,000 per month.

Est. years to FI

22 years

Saved per year

$24,000

About the savings rate calculator

Your savings rate — the share of take-home pay you save and invest — is widely considered the single most important factor in how quickly you can reach financial independence, because it lowers your spending and raises your investing at the same time.

The estimated time to financial independence assumes you start from zero, earn a 5% return after inflation and can safely withdraw 4% of your portfolio. It depends almost entirely on your savings rate, not your income.

This calculator is provided for educational purposes only and does not constitute financial advice. Results are estimates based on the assumptions you enter.

Frequently asked questions

What is a good savings rate?

There is no single answer, but higher is faster. Traditional advice suggests 15–20%, while many in the FIRE community aim for 40–60% or more to retire decades early.

Why doesn't income change the years-to-FI estimate?

Because financial independence is about the gap between what you earn and what you spend. Two people with very different incomes but the same savings rate reach independence in a similar number of years.

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