Savings Rate Calculator (and years until financial independence)

How it works

Savings rate = monthly saving ÷ take-home pay. Spending = take-home pay − saving, and the target nest egg = yearly spending ÷ withdrawal rate (25 × spending at 4%). Years to reach it solve T = P(1 + r)ⁿ + C((1 + r)ⁿ − 1) ÷ r, so n = ln((T·r + C) ÷ (P·r + C)) ÷ ln(1 + r), with P your current savings, C the yearly saving added at the end of each year and r the real return. Because a higher savings rate both adds to C and lowers T, it shortens the time much more than a raise you spend.

⚠ Estimates for information only — not financial advice.

FAQ

What savings rate is good?

There is no single answer, but the maths is clear: at a 5% real return and a 4% withdrawal rate, saving 10% of take-home pay takes about 51 years, 25% about 32 years and 50% about 17 years from zero.

Is the 4% rule safe?

It comes from US historical data for 30-year retirements. Longer retirements, high fees or a poor start in the markets may need a lower rate such as 3–3.5%. Treat the result as a rough guide, not a guarantee.

Checked 11 Nov 2026. Withdrawal rate: W. P. Bengen, “Determining Withdrawal Rates Using Historical Data”, Journal of Financial Planning 7(4), 1994; P. Cooley, C. Hubbard & D. Walz, “Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable”, AAII Journal, 1998. Annuity future-value formula for the years.