Definition
Savings rate
Your savings rate is the share of your income you keep rather than spend, usually expressed per month. It is the single number that determines how fast a financial cushion, a deposit or a debt payoff goal is reached.
A rise in income only improves your position if the savings rate rises with it. Otherwise the extra money is absorbed by spending and the timeline does not move.
Tools that use this term
Budget Calculator
Split your take-home pay into needs, wants and savings with the 50/30/20 guideline.
Savings Goal Calculator
How many months it takes to reach a savings target, with monthly deposits and interest.
Emergency Fund Calculator
How many months of expenses your emergency fund covers, and what to target next.