Salary Growth Flow
Understand how gross income translates to net salary, savings, and wealth growth over time.
Get a 12-month savings roadmap from your net income.
Why this flow matters
Most people know their gross salary but cannot answer the only question that matters: when does this turn into financial independence? This flow connects net income, savings rate, and compounding into a single clear timeline so you can see the impact of a raise or a higher savings rate immediately.
Your diagnosis
On track - target hit in 10.2 years.
- LaterCapture every employer match - it lifts effective savings without lifestyle cost
Your inputs
Edit any value - the diagnosis above updates instantly.
How the math works
The exact rules and formulas this flow applies - no black box.
- 1.Net monthly income = gross x (1 - effective tax rate). Keeps it simple - no payroll-level deductions.
- 2.Monthly savings = net x savings rate. Compounded monthly with annual return / 12.
- 3.Annual raise compounds the contribution itself once per year, mirroring real career income paths.
- 4.Time-to-target uses month-by-month simulation capped at 600 months (50 years).
How to read your result
- Months-to-target > 240 (20 years): savings rate is too low or target too aggressive. Raise rate by 5% steps.
- 12-month projected savings vs your target: if the gap is large early, the goal needs adjustment, not effort.
- Effective tax rate under 20% is uncommon in high-tax countries - if yours feels low, double-check brackets and surcharges.
Common questions
Why use net income, not gross?
You cannot save money the government already took. All savings math has to start from take-home pay.
What savings rate should I target?
20% is the classic floor for retirement-on-time. 30%+ buys real flexibility (career breaks, FIRE). Below 10% means almost no compounding.
Should I include 401k / employer match?
Yes - count employer match as part of your effective savings rate. Skipping it leaves free money on the table.