Your savings rate — the share of income you keep — is the strongest predictor of how fast you reach financial independence. Enter income and spending to see yours.
The relationship is dramatic: at a 10% savings rate, retirement is ~50 working years away; at 50%, roughly 17; at 70%, under 10. Raising the rate cuts from both ends — more saved and less lifestyle to fund.
The relationship is steep because the rate moves both terms at once. Saving half your income means each year of work funds a year of not working before any investment return is counted — and it also means the life being funded costs half as much. Neither effect alone would produce those numbers.
The projection assumes spending in retirement matches spending now and that the return holds. Both are assumptions rather than facts, and the second matters most early: a poor first decade forces either a longer working life or a smaller withdrawal, which is the risk the headline year count does not show.
How the rate is defined also changes the answer, so it is worth being consistent. Measuring against gross income gives a lower number than measuring against net; counting employer pension contributions raises it again. Any of these is defensible, but comparing your figure against somebody else’s only means something if both were computed the same way.
Frequently asked questions
How do I calculate my savings rate?
Everything you keep — savings, investments, extra debt repayments — divided by net income. Someone netting €2,500 and setting aside €500 a month has a 20% savings rate.
What savings rate do I need to retire early?
The relationship is dramatic: at 10% you are ~50 working years from independence, at 50% roughly 17, at 70% under 10. The rate matters far more than investment returns.
Do pension contributions count in my savings rate?
Yes — count everything that builds net worth, including employer pension contributions and principal repaid on debts. Just be consistent about whether income is gross or net.