Financial Calculators
Savings Rate Calculator
The share of income you keep sets the date you stop needing it.
Your savings rate
50%
₹75,000 saved every month
- Independence number (expenses / 4%)
- ₹2,25,00,000
- Years to get there
- 9.7 yrs (9 years 8 months)
The savings rate, not the salary, sets the timeline: it decides both how fast the corpus grows and how little it needs to be. Expenses are held at today's level; inflation is assumed to be matched by income growth. For an inflation-adjusted target, use the FIRE calculator.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
The one ratio that sets the timeline
Financial independence arrives when investments can pay for expenses indefinitely. Two things decide how fast you get there, and both are set by the same number: a higher savings rate grows the corpus faster and, because expenses are lower, shrinks the corpus you need. Someone saving half their income reaches independence in well under twenty years at ordinary returns; someone saving a tenth takes a working lifetime.
The calculator holds expenses at today's level and assumes income growth keeps pace with inflation, which keeps the arithmetic clean. For an inflation-adjusted target date, the FIRE calculator does the harder version.
Savings rate, target, timeline
Savings rate = (income - expenses) / income\nTarget = yearly expenses / safe withdrawal rate\nYears = months until corpus + monthly savings at r reaches the targetWorked example: on Rs 1,50,000 take-home and Rs 75,000 of expenses the savings rate is 50%. The independence number at a 4% withdrawal rate is Rs 2,25,00,000; with Rs 20,00,000 already invested and Rs 75,000 a month at 12%, it is reached in 116 months, 9.7 years.
Frequently asked questions
What withdrawal rate is safe in India?
The 4% rule comes from US data; with higher Indian inflation, 3-3.5% is more cautious. Lowering the rate raises the target and lengthens the timeline, which is the point.
Should I count the pension?
If a pension will cover part of your expenses, enter only the expenses it will not cover. That can cut the target dramatically for defence and government personnel.
What counts as investments so far?
Anything that will fund retirement: mutual funds, PPF, EPF or DSOP, NPS, shares. Exclude your home and the emergency fund.
Is 12% a fair return to assume?
For a mostly-equity portfolio over a decade or more, it is in the historical range. Use 9-10% for a balanced portfolio and lower still for one weighted to debt.
Move the rate, move the date.
We help clients raise the savings rate painlessly and invest it in a portfolio built for the timeline.