How to calculate your savings rate in Australia

Your savings rate is one number that shows how much of your income you keep. It is easy to calculate, but there is more than one way to do it, and the answer changes with the choices you make. This guide sets out the common versions, shows them side by side on one example, and explains how to keep the figure consistent so it is useful over time.

What is a savings rate?

A savings rate is the share of your income that you keep rather than spend. The formula is:

Savings rate = (income minus spending) divided by income, as a percentage

If you take home $5,000 in a month and spend $4,000, you keep $1,000, so your savings rate is 1,000 divided by 5,000, which is 20%.

Moneysmart, the consumer site run by ASIC, describes a budget as showing what money comes in and what goes out, which helps you see what you can save each week or month. That difference between money in and money out is the top line of the formula above.

Should you use gross income or take-home pay?

Use whichever you can measure reliably, and use the same one every time. The two answer slightly different questions.

• Take-home pay (after tax) shows how much of the money you actually receive you keep. It is easy to check, because it is the amount that lands in your account.
• Gross pay (before tax) shows how much of your whole pay packet ends up saved. The same dollars saved give a lower percentage, because tax is counted in the income figure but cannot be saved.

Neither is more correct. Problems start when you compare a take-home rate from one month with a gross rate from another, or with a figure someone else quotes without saying which they used.

Does super count towards your savings rate?

It can, and it is your choice, as long as you treat it the same way on both sides of the formula. If you add your employer’s super contributions to your savings, add them to your income as well.

The ATO sets the minimum employer contribution, called the super guarantee. From 1 July 2025 it is 12% of an employee’s ordinary time earnings for the quarter. Ordinary time earnings are a subset of an employee’s salary and wages. The ATO also notes that an employer may pay a higher rate under an award or agreement, and that once an employee’s earnings for the quarter pass the maximum contribution base, super guarantee is not required on the excess.

Super is usually locked away until you meet a condition of release. That is why many people track two numbers: a rate without super, which reflects the money they can use, and a rate with super, which reflects everything they are building.

Which version should you use?

Pick the version that matches the question you are asking, and write down which it is.

Version	Savings counted	Income counted	Good for
Take-home, without super	What you save from your pay	Pay after tax	A simple monthly check, and the money you can reach now
Gross	What you save from your pay	Pay before tax	Comparing with figures quoted on gross pay
Gross, with super	Saved pay plus employer super	Gross pay plus employer super	A fuller picture of what you are building

What does a savings rate calculation look like?

In this fictional example, Alex earns a salary of $90,000 a year and takes home $5,500 a month after tax. Alex spends $4,400 a month. The figures are made up and rounded, and the take-home amount is an assumption for the example, not a tax calculation.

Alex also receives employer super. To keep the example simple, assume the whole salary counts as ordinary time earnings and is below the maximum contribution base, so super is 12% of $90,000, which is $10,800 a year, paid on top of the $90,000 salary.

Step	Per year
Take-home pay ($5,500 x 12)	$66,000
Spending ($4,400 x 12)	$52,800
Saved from pay ($66,000 minus $52,800)	$13,200
Employer super (12% of $90,000, paid on top of the $90,000 salary)	$10,800

Now the three versions:

Version	Calculation	Savings rate
Take-home, without super	$13,200 divided by $66,000	20.0%
Gross, without super	$13,200 divided by $90,000	14.7%
Gross, with super	($13,200 plus $10,800) divided by ($90,000 plus $10,800)	23.8%

The same year of behaviour produces 14.7%, 20.0% or 23.8%. None is wrong. They measure different things, which is why the label on the number matters more than the number.

Notice what Alex did not do: add super to the savings but leave it out of the income. That would give $24,000 divided by $90,000, or 26.7%, and it overstates the rate because the super was never part of the income figure.

What counts as savings and what counts as spending?

Decide this once and write it down. The usual questions are:

• Money moved to a savings account or investments: usually counted as saved.
• Debt repayments: some people count only the extra principal they repay as saving, others treat all repayments as spending. Either is fine if you are consistent.
• Irregular costs such as rego, insurance or gifts: count them as spending in the month you pay, or spread them evenly through the year. Spreading gives a steadier monthly rate.
• Transfers between your own accounts: these are neither saving nor spending, so leave them out or they will distort both sides.

How does your savings rate compare with the national figure?

The Australian Bureau of Statistics reported that the household saving to income ratio rose to 6.5% in the June quarter 2026, up from 6.4% in the March quarter. The ABS said growth in gross disposable income outpaced growth in nominal household spending.

Treat this as a reference point, not a target. It covers all households together and is built from national accounts, so it is calculated differently from the version you work out from your own statements. The sources we checked for this guide do not set a recommended personal savings rate. A rate that suits you depends on your goals, costs and stage of life.

How often should you calculate it?

Monthly is a good rhythm for most people, with a look at the trailing 12 months to smooth out irregular costs. A single month can be skewed by a big bill or a bonus. The direction over several months usually says more than any one reading.

Moneysmart suggests tracking your progress with your bank’s app, a simple spreadsheet or its budget planner. If you import your bank statements into a tool such as Finsplore, which sorts transactions into categories, the totals you need for the formula (income, spending and what moved to savings) come from the same data each month. Finsplore shows information about your own numbers. It is general information, not financial advice.

What are the limits of a savings rate?

A savings rate says nothing about how your savings are held, how much debt you carry, or whether your goals are on track. Pair it with your net worth and your emergency fund target for a fuller picture. This guide is general information only and does not take your personal circumstances into account.