## Key Takeaways

- To calculate your savings rate, divide your savings by your income and multiply by 100 to get a percentage.
- Determine your total income, including all sources such as salary, bonuses, and investment income.
- Calculate your total savings, including contributions to retirement accounts, emergency fund, and other savings goals.
- Divide your total savings by your total income to get a decimal number.
- Multiply the decimal number by 100 to get your savings rate as a percentage.
- Choose a method that works for you and is consistent over time to track your progress towards financial goals.

## Calculating Your Savings Rate

To calculate your savings rate, you need to follow a few simple steps. By understanding these steps, you can gain a better understanding of your financial situation and make informed decisions about your savings goals.

### Step 1: Determine Your Total Income

The first step in calculating your savings rate is to determine your total income. This includes all sources of income, such as your salary, bonuses, and investment income. Make sure to consider all sources to get an accurate picture of your financial situation.

### Step 2: Calculate Your Total Savings

Next, calculate your total savings. This includes all the money you save, such as contributions to your retirement accounts, emergency fund, and other savings goals. Consider all your savings efforts to get an accurate measure of your savings rate.

### Step 3: Divide Your Total Savings by Your Total Income

Once you have determined your total income and total savings, divide your total savings by your total income. This will give you a decimal number that represents the proportion of your income that you are saving.

### Step 4: Multiply the Decimal Number by 100

To express your savings rate as a percentage, multiply the decimal number by 100. This will give you your savings rate as a percentage, which is a more easily understandable measure of your savings efforts.

For example, if your total income is $50,000 and your total savings is $10,000, your savings rate would be:

$10,000 / $50,000 x 100 = 20%

It is fundamental to note that there are different methods to calculate savings rate, and some people may include or exclude certain expenses or income sources. Choose a method that works for you and is consistent over time so you can track your progress towards your financial goals.

## Calculating Savings Rate in Portugal

In Portugal, the savings rate is calculated as a percentage of gross domestic product (GDP) and reflects the part of disposable income that is not spent as final consumption expenditure. To calculate the savings rate in Portugal, you need to determine the difference between disposable income and final consumption expenditure.

The formula to calculate the savings rate in Portugal is:

Savings rate = (Disposable income - Final consumption expenditure) / Disposable income

The result is then multiplied by 100 to express it as a percentage.

## Calculating Savings Rate with Specific Time Period

To calculate the savings rate with a specific time period, you need to divide the amount of money saved by the total income earned during that period. The formula is:

Savings rate = (Money saved / Total income) x 100%

For example, if you earned $5,000 in a month and saved $1,000, your savings rate would be:

Savings rate = (1,000 / 5,000) x 100% = 20%

This means that you saved 20% of your income for that month. It is fundamental to note that the savings rate can vary depending on the time period you choose to calculate it for, such as a month, a year, or several years.

Additionally, the savings rate can be affected by factors such as expenses, debt, and changes in income over time.

Note: Please keep in mind that the estimate in this article is based on information available when it was written. It's just for informational purposes and shouldn't be taken as a promise of how much things will cost.

Prices and fees can change because of things like market changes, changes in regional costs, inflation, and other unforeseen circumstances.

## Links and references

My article on the topic:

In this article I explain what a savings rate is and why it is important for your financial future:

Frequently asked questions about savings rate

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In this article I explain the reasons behind the low savings rates in today's economy and how it affects your financial future:

Why are savings rates so low in today's economy?

In this article I explain how the personal savings rate is calculated and what factors can affect it:

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