🇺🇸 United States · USD

US savings rate, decoded.

Enter your US income, what you actually save each month into your 401(k), Roth IRA, HSA, or brokerage, and your expenses. See your savings rate, years to FI, and how the US tax system affects what you can realistically save.

Your inputs

All figures in USD. Enter take-home after federal, state, and FICA taxes.
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Results

Your savings rate
Effective tax rate (incl. FICA)
Years to FI
Implied retirement age

Savings rate benchmark table

Based on starting from zero net worth, 7% annual return, 4% safe withdrawal rate. Your nearest rate row is highlighted.

Worked example — United States

A $100,000 gross salary in the US yields roughly $70,000 take-home after federal income tax, FICA (7.65%), and estimated state tax. Saving $2,917/month ($35,000/year — maxing a Roth 401(k) + Roth IRA + HSA) with $2,917/month expenses gives a 50% savings rate. At 7% return, FI is reached in roughly 17 years — with all growth entirely tax-free inside Roth accounts.

How this works — US context.

Your savings rate is the single most powerful lever on your path to financial independence. In the US, federal income tax, FICA (Social Security + Medicare), and state income tax typically take 25–35% of gross pay, limiting the savings rate achievable from a given gross salary.

Savings rate = monthly savings ÷ (take-home ÷ 12) × 100

US tax-advantaged advantage: Maxing a Roth 401(k) ($24,500), Roth IRA ($7,500), and HSA ($4,300 individual / $8,550 family) shelters $36,350–$37,550 per year from future taxes. Roth accounts mean the nominal return this calculator shows is also your real after-tax take-home return at retirement.

The US FIRE community has popularised the concept that savings rate — not income — is the primary driver of financial independence timelines. The non-linear relationship between savings rate and years to FI is why a jump from 25% to 50% cuts the timeline roughly in half.

Important: figures are nominal (pre-inflation). To see real after-inflation growth, subtract roughly 2–3% from your return assumption.

Frequently asked.

What is savings rate?

Savings rate is the percentage of your take-home (post-tax, post-FICA) income that you save or invest each month — including 401(k), Roth IRA, HSA, and taxable brokerage contributions.

Why does savings rate matter more than income?

A higher income without a higher savings rate just inflates your FI target. In the US, federal tax + FICA takes a significant chunk, so tracking savings rate from take-home pay is the honest way to measure progress.

What is a good savings rate for US FIRE?

At 50% of take-home you can reach FI in roughly 17 years. The US FIRE community (FatFIRE, LeanFIRE, BaristaFIRE) typically targets 25–70%. Maxing Roth accounts provides tax-free compounding.

How does savings rate relate to financial independence?

Your savings rate determines both your annual investment and your spending level (FI target = 25× annual expenses at 4% SWR). The higher the rate, the faster the portfolio grows and the lower the target.

How does US tax treatment affect the achievable savings rate?

Inside Roth 401(k) or Roth IRA, all growth and qualified withdrawals are tax-free. Traditional 401(k) defers taxes to withdrawal. HSA is triple tax-advantaged for medical expenses. In a taxable brokerage, long-term capital gains (0–20%) apply — model with a return rate 1–2% lower.

Turn your US savings rate into a living 10-year forecast.

ProFinanceCast tracks your savings rate, 401(k) contributions, and Roth IRA balances over time — and shows which change moves your FI date most. Free forever for the core forecast.

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