Savings Rate & Years-to-Target Calculator
Calculate your savings rate from income and expenses, then estimate how many years of investing your monthly savings (at an assumed return) would take to reach a target amount. Educational estimate, not financial advice.
Two calculations, one page
The rate is a simple share of income. The years figure inverts the monthly annuity formula to ask how long a stream of deposits takes to reach the target:
monthly savings = income - expenses
savings rate = monthly savings / income × 100
r = annual return / 100 / 12
months = ln(1 + target × r / savings) / ln(1 + r)With the defaults - $6,000 in, $4,000 out - you save $2,000 a month, a rate of 33.3%. Against a $200,000 target at 7%, r is 0.0058333 and the log ratio comes to 79 months, so the page shows 6.6 years.
What moves the answer
Saving more does double duty: it raises the numerator and cuts the expenses you eventually have to fund. Holding income at $6,000 and the target at $200,000:
| Saved each month | Savings rate | Years to target |
|---|---|---|
| $1,000 | 16.7% | 11.1 |
| $2,000 | 33.3% | 6.6 |
| $3,000 | 50.0% | 4.7 |
| $4,000 | 66.7% | 3.7 |
Frequently asked questions
Should I use gross or take-home pay?
Either, as long as you stay consistent. Take-home gives a rate you can act on month to month; gross income produces a lower number but is the one to use if you also count pension contributions you never see.
What savings rate do I need to retire early?
The higher the rate, the shorter the wait, and it compounds twice over: a 50% rate both fills the pot faster and halves the spending it has to cover. FIRE plans commonly run at 40% to 70%, well above the mid single digits typical of household saving.
Why does the tool say N/A for years to target?
Because your expenses match or exceed your income, so there is nothing to invest. The savings rate still displays, as zero or negative.