Your savings rate is the percentage of income you don’t spend. In this calculator, it’s calculated as (income − spending) ÷ income. It’s a simple way to measure how much of your monthly cash flow you’re keeping for goals like an emergency fund, investing, or debt payoff.

For a practical budget view, use take-home income (after taxes and payroll deductions) because it reflects the money you can actually allocate. Some people also calculate a “gross savings rate,” but it’s less useful for month-to-month planning.

Include essentials and discretionary spending: housing, utilities, groceries, transportation, insurance, subscriptions, dining out, and entertainment. Exclude transfers to savings/investing accounts so you don’t count savings as spending.

A negative savings rate means spending is higher than income for the month. That can happen because of irregular bills, one-time purchases, or relying on credit. If this repeats, look for expense cuts, income increases, or a plan to reduce reliance on debt.

There isn’t one perfect number—goals and costs vary—but many people aim for steady progress (even 5–10%), then build toward higher rates over time. The best savings rate is one you can maintain while still covering essentials and meeting your priorities.