Savings Rate Calculator
Calculate your savings rate and discover how many years until you could retire — based on your income, spending, and investment return assumptions.
Why Savings Rate Is More Powerful Than Income
Your savings rate — the percentage of take-home income you save and invest — determines how quickly you can reach financial independence, regardless of your income level. Someone earning £30,000 and saving 50% will achieve independence faster than someone earning £100,000 and saving 10%. The savings rate determines two things simultaneously: how quickly you accumulate wealth (more saving = faster accumulation) and how much you need to accumulate (lower spending = smaller target). Doubling your i
The 25× Rule and 4% Withdrawal
The financial independence number is typically calculated as annual expenses × 25 — derived from the 4% safe withdrawal rate. At 4% withdrawal, a £750,000 portfolio generates £30,000 per year. Research (the 1994 Trinity Study, updated several times) found that a 4% withdrawal rate from a diversified portfolio historically survived 30 years across most market conditions. For very early retirement (30+ years), some FI planners use 3–3.5%. The UK state pension (£11,502/year) meaningfully reduces th
Savings Rate Benchmarks
UK average savings rate: approximately 8–10% of disposable income (ONS data). FIRE community targets: Lean FIRE (minimal lifestyle): 60–80%+ savings rate. Regular FIRE: 40–60%. Slow or Flexible FIRE: 20–30%. The relationship is non-linear — going from 10% to 30% savings rate is more impactful than going from 50% to 70%. At 10% savings rate: ~43 years to FI. At 25%: ~32 years. At 50%: ~17 years. At 75%: ~7 years. This assumes 7% real investment returns and 4% withdrawal rate.
Reducing Expenses vs Increasing Income
Both approaches increase savings rate, but they have different long-term impacts. Reducing expenses permanently lowers your FI number (you need 25× of lower annual spending). Increasing income with the same spending accelerates accumulation without lowering the target. The most powerful approach combines both: invest in earning more while being intentional about spending. Lifestyle inflation — spending more as income rises — is the primary reason high earners remain financially vulnerable. Track
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