How is the savings rate calculated?

The savings rate is calculated by dividing the amount saved by your total income over a specific period and then multiplying by 100 to get a percentage. Following is a step-by-step breakdown:

• Total Savings: Sum up all the money you have set aside, including contributions to savings accounts, retirement funds, and investments.
• Total Income: Add up all your sources of income, such as salary, bonuses, investment returns and other sources of income.
• Divide and Multiply: Divide your total savings by your total income. Multiply the result by 100 to convert it into a percentage.

For example, if you saved ₹50,000 and your total income was ₹2,50,000 in a year, your savings rate would be (₹50,000 / ₹2,50,000) * 100 = 20%.