What Is a Savings Rate?
A savings rate is the percentage of income that is saved rather than spent over a period. It is commonly calculated as amount saved ÷ income × 100, using either gross or net income, which should be stated for comparisons. Economists also track a national personal saving rate across households.
Example
Saving 800 a month out of take-home pay of 4,000 is a 20% savings rate on net income.
Why It Is Tracked
In long-term planning, the savings rate largely determines how quickly a savings target, such as a FIRE number, can be reached.
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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.