How much should I save each month?

Financial experts recommend saving at least 20% of your monthly income. However, the exact amount depends on your income, expenses, and financial goals. Use our savings calculator to determine a realistic savings target based on your situation.

What is a good savings rate?

A good savings rate is 20% or higher. Excellent savers typically save 30-50% of their income. The FIRE (Financial Independence, Retire Early) community often targets 50%+ savings rates. Even 10-15% is a solid start if you're just beginning.

How can I increase my savings rate?

To increase your savings rate, focus on both sides: reduce expenses (cancel unused subscriptions, cook at home, negotiate bills) and increase income (side hustles, promotions, skill development). Automate your savings by setting up automatic transfers on payday.

What if my expenses exceed my income?

If expenses exceed income, prioritize reducing unnecessary spending first. Track all expenses for a month, identify areas to cut (entertainment, dining out, subscriptions), and create a realistic budget. Consider increasing income through a side job or selling unused items.

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Savings Calculator

Calculate how much you can save per month based on your income and expenses

Your Information

Monthly Income

Monthly Expenses

💡 Savings Tips

• Aim to save at least 20% of your income
• Track all expenses to identify savings opportunities
• Automate savings transfers on payday
• Review subscriptions monthly for unnecessary spending

Your Savings Potential

Monthly Savings

$1,500

Savings Rate

30.0%

Annual Savings

$18,000

In 5 Years

$90,000

In 10 Years

$180,000

📊 Assessment

Excellent! You're saving above the recommended 20% rate.

How the Savings Calculator Works

This calculator helps you determine how much you can save each month based on your income and expenses.

Formula:

• Monthly Savings = Monthly Income - Monthly Expenses
• Savings Rate = (Monthly Savings / Monthly Income) × 100%
• Annual Savings = Monthly Savings × 12

Financial experts recommend saving at least 20% of your income. Use this calculator to track your progress and set realistic savings goals.

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