What’s your savings rate?
Use this calculator for an estimate of your yearly savings rate.
| Amount | Frequency | Total | |
|---|---|---|---|
| Net Income | |||
| Pre-tax Savings | |||
| Rental Income | |||
| Other Income | |||
| Total Income | |||
| RRSP Savings | |||
| TFSA Savings | |||
| Pre-tax Savings | |||
| Mortgage Principle Payments | |||
| Loan/Debt Payments | |||
| Total Savings | |||
What to Include in Income
Net Income – Your take home pay after taxes, deductions, and fees. If you are a salaried employee, this part is simple. If you have fluctuating monthly income, make an estimate of your yearly income after taxes.
Pre-tax Savings – if you have a company pension or stock purchase program, enter the sum of both your employer and employee contributions. Since this is pre-tax, this will be included in both your income and savings for the calculation.
Rental Income – I include my gross rental income. I don’t subtract rental fixed costs (mortgage, taxes) and maintenance costs. You could instead use your rental net income but this way lower my savings rate and provide a more conservative estimate.
Other Income – Other income not listed. This could be money received from family members, inheritance, etc.
What to Include in Savings
Investment Savings – Any contributions to your RRSP, TFSA, or non-registered accounts that are for long term. Do not include short-term savings for emergency fund or sinking funds. For example, I use my EQ TFSA account to store cash savings. I do not include this in my savings rate calculation.
Pre-tax Savings – See above. Pre-tax savings increase both your “net income” and “savings” so is therefore included in the numerator and denominator of the calculation.
Mortgage Principle Payments – Include only the principle reduction of your principle and interest mortgage payments. I include the principle pay down for both my home and rental mortgage. This is not your mortgage payment, as a portion goes towards interest.
Loan/Debt Payments – Any payments to loans or lines of credit. For loans that are both a principle and interest payment (like a mortgage payment), be sure to include only the principle portion. This does not include credit card payments.