Required Savings Rate Calculator
Calculate the savings rate you need to reach your retirement goals. This tool shows how your required savings changes based on retirement age, spending level, and other income sources like Social Security.
Your Situation
Other Retirement Income (Monthly)
Assumptions
Required Savings Rate
$70/month
You have a comfortable path to your retirement goals.
Retirement Income Breakdown
| Annual spending goal | $50,000 |
| Social Security + Pension | - $24,000 |
| Needed from portfolio | $26,000 |
| At 4% withdrawal rate | = $650,000 portfolio |
Savings Rate by Retirement Age
| Retire At | Years Left | Savings Rate | Monthly |
|---|---|---|---|
| Age 55 | 25 years | 7.5% | $499 |
| Age 60 | 30 years | 3.6% | $238 |
| Age 65 | 35 years | 1.1% | $70 |
| Age 70 | 40 years | 0.0% | $0 |
Savings Rate by Spending Level
| Annual Spending | Target Portfolio | Savings Rate |
|---|---|---|
| $30,000 | $150,000 | 0.0% |
| $40,000 | $400,000 | 0.0% |
| $50,000 | $650,000 | 1.1% |
| $60,000 | $900,000 | 3.3% |
| $80,000 | $1,400,000 | 7.8% |
| $100,000 | $1,900,000 | 12.4% |
Savings Rate Benchmarks
Understanding Savings Rates
Why Savings Rate Matters
Your savings rate is the most important factor in building wealth. A higher rate means faster wealth accumulation AND lower expenses to fund in retirement—a double benefit.
The Math of Early Retirement
At a 10% savings rate, you need ~40 years to retire. At 50%, only ~17 years. At 75%, just ~7 years. The relationship is non-linear— each percentage point matters more as you go higher.
How to Increase Your Rate
Focus on the big three: housing, transportation, and food. Automate savings before spending. Increase savings with every raise. Track spending to find leaks.
Frequently Asked Questions
What is a good savings rate?
The "right" savings rate depends on your goals:
- 10-15%: Minimum for traditional retirement at 65
- 15-20%: Recommended by most financial advisors
- 25-30%: For early retirement in your 50s
- 50%+: For FIRE (retire in your 40s or earlier)
How do I calculate my savings rate?
Savings Rate = (Annual Savings ÷ Annual Gross Income) × 100
Include all retirement savings:
- 401(k) contributions (including employer match)
- IRA contributions
- Taxable investment account contributions
- HSA contributions (if used for retirement)
Does employer 401k match count?
Yes! Employer matching contributions should be included in your savings rate. If you contribute 6% and your employer matches 3%, your effective savings rate from that account is 9%. This is real money being saved for your retirement.
How does savings rate affect retirement timeline?
| Savings Rate | Years to Retirement* |
|---|---|
| 10% | ~40 years |
| 20% | ~32 years |
| 30% | ~25 years |
| 50% | ~17 years |
| 75% | ~7 years |
*Assuming 7% real returns and 4% withdrawal rate, starting from zero