1. What is the Savings Calculator?

The Personal Savings Calculator helps you determine how much money you're saving by calculating the difference between your income and expenses. It provides a simple way to track your financial health.

2. How Does the Calculator Work?

The calculator uses the basic savings formula:

Where:

• \( Income \) — Your total income in USD
• \( Expenses \) — Your total expenses in USD

Explanation: The formula simply subtracts your expenses from your income to show how much you're saving.

3. Importance of Savings Calculation

Details: Regularly calculating your savings helps with budgeting, financial planning, and achieving financial goals. It's a key metric for financial health.

4. Using the Calculator

Tips: Enter your total income and expenses in USD. Both values must be positive numbers. The calculator will show your net savings.

5. Frequently Asked Questions (FAQ)

Q1: What counts as income?
A: Include all sources of income - salary, bonuses, investments, side gigs, etc.

Q2: What should be included in expenses?
A: Include all regular expenses - rent/mortgage, utilities, food, transportation, entertainment, etc.

Q3: How often should I calculate my savings?
A: Monthly calculations are most common, but you can do it weekly or quarterly depending on your needs.

Q4: What's a good savings amount?
A: Financial experts often recommend saving at least 20% of your income, but this varies by individual circumstances.

Q5: Should I include taxes in expenses?
A: Yes, if your income is pre-tax. If your income is after taxes, don't include taxes in expenses.