Your Savings Rate is calculated on a monthly basis by dividing the money you’ve saved by your total income.

Savings Rate = (Saved in budget + Pre-tax saved) / (Income + Pre-tax saved)

Saved Money

Money can be saved in two ways:

  • Budgeted towards a savings category
  • Money set aside as a pre-tax saved item

Your total savings for the month will include both of these. To make sure a category is a savings category, you can click on it and see how it is defined.

Total Income

Total income is basically the same as the income you record, except we add pre-tax savings back in.

We add this money back in because if you hadn’t saved it as a pre-tax item, it would likely show up in your paycheck anyway. And from there it would show up in your budget. If you hadn’t saved it as a pre-tax item, you would still be responsible for figuring out how much of it to save.

Related Help Articles