How much of my income should I save for retirement?

It depends on your age, current savings, and goal. This calculator solves for the exact rate; a common rule of thumb is 15% of income, but starting later requires considerably more.

Why does the required rate rise so fast if I start late?

Compounding rewards time. With fewer years to grow, contributions do less of the work, so a much larger share of income is needed to reach the same target.

What does a rate above 100% mean?

It means the target is not reachable from income alone in the years remaining. You would need to retire later, lower the replacement goal, or rely on other income such as Social Security.

Should I include Social Security?

This tool counts only your own savings. If you expect Social Security or a pension, lower your replacement target to reflect the income those will provide.

Savings Rate to Retire Calculator

Find the share of your income you need to save each year to hit your retirement target by your chosen age.

By AbraCalc Retirement Desk · Reviewed by AbraCalc Retirement Desk · Last reviewed: 2026-06-25

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How to use this tool

Enter your current age and the age you want to retire.
Add your current retirement savings and your annual income.
Set the share of income you want to replace and an expected return.
Read the required savings rate and annual savings to hit your target.

What percentage of your paycheck do you need to save to retire on time? Enter your details to find the required savings rate for your target.

Formula

Nest egg needed = Income × (Replacement ÷ 100) × 25 — the 25× rule applied to the income you want to replace.

Required annual savings = (Needed − Current × (1 + r)ⁿ) ÷ A, where A = [(1 + r)ⁿ − 1] ÷ r is the annuity factor (A = n when r = 0) and n = retirement age − current age.

Required savings rate = Required annual savings ÷ Income × 100. A rate above 100% means the target is not reachable on income alone in the time available.

How it works

Your savings rate — the share of income you set aside each year — is the single biggest lever you control over when you can retire. This calculator works backward from a goal: it sizes the nest egg you need to replace a chosen share of your income, then solves for the level annual saving that, together with your current balance, grows to that target by your retirement age.

The target uses the 25× rule (the inverse of a 4% withdrawal rate) applied to the income you want to replace. The solver compounds your existing savings forward and divides the remaining gap by the future-value annuity factor, giving the steady yearly contribution required. Expressed as a percentage of income, that is your required savings rate.

Work in today's dollars with a real return so the replacement target and the result stay consistent. The model assumes level saving and a constant return and excludes Social Security, pensions, and taxes — so a rate above what feels feasible is a signal to start earlier, retire later, lower the replacement target, or count other income. Reviewed by the AbraCalc Retirement Desk against standard goal-based saving methods. This calculator provides general information, not financial advice; consult a qualified professional for decisions about your own situation.

Worked example

Age 30, retire at 65, $50k saved, $80k income, 80% replacement, 7%

Nest egg needed = $80,000 × 80% × 25 = $1,600,000.
Years n = 65 − 30 = 35; growth g = (1.07)³⁵ = 10.676581.
Current grows to $50,000 × 10.676581 = $533,829.06.
Annuity factor A = (10.676581 − 1) ÷ 0.07 = 138.236872.
Required annual savings = ($1,600,000 − $533,829.06) ÷ 138.236872 = $7,712.64.
Savings rate = $7,712.64 ÷ $80,000 = 9.64%.

Required savings rate: 9.64% — about $7,712.64 per year toward a $1,600,000 nest egg.

Required savings rate by starting age ($80k income, 80% replacement, $50k saved, 7%)

Start age	Years to 65	Required savings rate
25	40	5.33%
30	35	9.64%
35	30	16.14%
40	25	26.26%
45	20	42.89%
50	15	72.73%

Key terms

Savings rate: The percentage of your income you save each year; the strongest determinant of how soon you can retire.
Income replacement: The share of your pre-retirement income you aim to reproduce from savings in retirement, often 70–85%.
25x rule: The guideline that you need roughly 25 times your annual spending invested to retire, the inverse of a 4% withdrawal rate.
Annuity factor: The multiplier [(1+r)^n − 1] ÷ r that converts a stream of yearly savings into its future value.

Frequently asked questions

How much of my income should I save for retirement?: It depends on your age, current savings, and goal. This calculator solves for the exact rate; a common rule of thumb is 15% of income, but starting later requires considerably more.
Why does the required rate rise so fast if I start late?: Compounding rewards time. With fewer years to grow, contributions do less of the work, so a much larger share of income is needed to reach the same target.
What does a rate above 100% mean?: It means the target is not reachable from income alone in the years remaining. You would need to retire later, lower the replacement goal, or rely on other income such as Social Security.
Should I include Social Security?: This tool counts only your own savings. If you expect Social Security or a pension, lower your replacement target to reflect the income those will provide.