📊 Savings Plan Calculator
Create and calculate your savings plan
OR use savings rate below
Percentage of income to save
How to Use This Calculator
Enter Your Monthly Income
Input your total monthly income from all sources. This is your starting point for the savings plan.
Set Your Savings Plan
Either enter your monthly expenses (calculator finds savings) OR enter your savings rate as a percentage of income. The 50/30/20 rule suggests saving 20% of income.
Set Investment Parameters
Enter your expected annual return rate (default 7%) and the number of years you'll follow this plan. These determine how much your savings will grow.
Review Your Plan
See your projected future savings, total contributions, and interest earned. Use this to adjust your savings rate or timeline to meet your goals.
Formula
Future Value = PMT × [((1 + r)ⁿ - 1) / r]
Where:
• PMT = Monthly Payment (Monthly Savings)
• r = Monthly Interest Rate (Annual Rate ÷ 12)
• n = Number of Months (Years × 12)
Example Calculation:
If monthly income is $5,000, savings rate is 20%, annual return 7%, for 30 years:
• Monthly savings = $5,000 × 0.20 = $1,000
• Monthly rate = 7% ÷ 12 = 0.5833%
• Months = 30 × 12 = 360
• Future value = $1,000 × [((1.005833)³⁶⁰ - 1) / 0.005833] = $1,219,971
• Total contributions = $1,000 × 360 = $360,000
• Interest earned = $1,219,971 - $360,000 = $859,971
About Savings Plan Calculator
A savings plan calculator helps you create and visualize a comprehensive savings plan based on your income, expenses, and savings goals. It shows you how much you'll save over time with regular contributions and compound interest, helping you understand the long-term impact of your savings strategy. Whether you're following the 50/30/20 rule, saving a specific percentage, or planning based on expenses, this calculator helps you see where your savings plan will take you.
When to Use This Calculator
- Financial Planning: Create a comprehensive savings plan
- Budget Creation: Build a budget with savings goals
- Retirement Planning: Plan long-term retirement savings
- Goal Setting: Set and track savings goals
- Strategy Comparison: Compare different savings rates and strategies
Savings Rate Guidelines
- Emergency Fund: Save 3-6 months of expenses first
- 50/30/20 Rule: 50% needs, 30% wants, 20% savings
- Retirement: Save 15-20% of income for retirement
- Aggressive Savings: Some aim for 30-50% savings rate
- FIRE Movement: Often requires 50%+ savings rate
Why Use Our Calculator?
- ✅ Comprehensive Planning: See complete picture of your savings plan
- ✅ Flexible Inputs: Use expenses OR savings rate
- ✅ Compound Interest: See long-term growth potential
- ✅ Goal Visualization: See where your plan leads
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What's a good savings rate?
A good savings rate depends on your goals. The 50/30/20 rule suggests saving 20% of income. For retirement, aim for 15-20%. For early retirement (FIRE), you may need 50%+. Start with what you can afford and increase over time. The key is consistency.
Should I use monthly expenses or savings rate?
Either works! If you know your exact expenses, use that. If you prefer to think in terms of percentage of income (like the 50/30/20 rule), use savings rate. The calculator works with both approaches.
How do I increase my savings rate?
To increase your savings rate: reduce expenses (cut unnecessary spending), increase income (side hustles, raises, new job), automate savings (pay yourself first), and review your plan regularly to find more savings opportunities.
What if I can't save 20%?
Start with what you can afford, even if it's 5-10%. The important thing is to start and be consistent. As your income grows or expenses decrease, increase your savings rate. Compound interest works best over long periods, so starting early is valuable even with smaller amounts.