How to Calculate Savings Rate

by Contributing Writer; Updated September 26, 2017

Your rate of savings in a given year is the rate at which you are saving money. This rate can be a negative number, if you are spending money out of your savings. The rate can be a large positive number, if you are saving money hand over fist.

How to Calculate Savings Rate

Step 1

Determine the amount of money you saved during a given year. It is easiest for most people to compute the savings rate on an annual basis, because most people take a good hard look at finances annually opposed to monthly or quarterly. Your savings amount should include any money in checking and savings accounts, retirement funds and any other miscellaneous accounts that you contributed to during the year.

Step 2

Write down the amount of money you had as income during that same year. This amount should include any earned and non-earned income.

Step 3

Verify this information. You want to make sure you have true data here, so you may do comparisons with other years if you so desire. Check your information with your balance books and tax returns.

Step 4

Divide the amount of money you saved during the year by the amount of money you had as income during the year. This will give you your total rate of savings. You can compute the percentage of income you saved during a year by multiplying that number by 100. This will tell you how much of your total income during the year you put away.

Step 5

Compare this information with previous years, if you'd like. This can put your savings success during the year in question into perspective for you. This can also help you plan for future savings rates.