Best way to calculate % to savings

[Zaga]

So I was wondering how mustachians calculate the percent they save each month.  I'll give my approximate numbers so you can see my confusion.

Between 401-K withholdings and the company match we put away just over $2K a month.
Our debt reduction is another just over $1K a month on average, probably higher next year.
Our take home pay averaged over the past year almost exactly $6K, that's what's actually in our paychecks.
Our gross income is about $10K a month.

So is our saving percentage about 50%, because debt reduction plus 401-K divided by take home pay is that?  Or some other calculation based on gross income?

Thanks for any suggestions, I just want a consistent barometer to go by.

[chucklesmcgee]

So I was wondering how mustachians calculate the percent they save each month.  I'll give my approximate numbers so you can see my confusion.

Between 401-K withholdings and the company match we put away just over $2K a month.
Our debt reduction is another just over $1K a month on average, probably higher next year.
Our take home pay averaged over the past year almost exactly $6K, that's what's actually in our paychecks.
Our gross income is about $10K a month.

So is our saving percentage about 50%, because debt reduction plus 401-K divided by take home pay is that?  Or some other calculation based on gross income?

Thanks for any suggestions, I just want a consistent barometer to go by.

I think you're right. (Amount put towards increasing net worth)/(takehome pay)=savings percent.

[Zaga]

But I haven't included the 401-K portion as a part of the denominator in that calculation, and maybe I should?

[arebelspy]

There is no "best" way - it will depend on personal preference as well as why you are trying to calculate it.

Here are some links to previous discussions.

https://forum.mrmoneymustache.com/ask-a-mustachian/probably-answered-already-but-i-can't-find-it-calculating-your-savings-rate/

https://forum.mrmoneymustache.com/ask-a-mustachian/calculating-savings-rate/

https://forum.mrmoneymustache.com/antimustachian-wall-of-shame-and-comedy/how-do-you-calculate-your-savings-rate/

LONG discussion of calculating savings rate based on net or gross (and a few other issues), here:
https://forum.mrmoneymustache.com/ask-a-mustachian/saving-50-of-gross-or-net/

[Zaga]

Thanks Rebel, I obviously didn't spend time searching for what I was looking for.

Previous to this I have used the formula:  total savings counting the company match / total gross income.  That's not terribly useful I'm finding since we spend less than half of our gross, and a significant part of that is because of taxes.  Counting federal, state, local, property, sales, and both sides of payroll taxes we are at over 40% of gross to various taxes.  This will certainly go down in retirement except for sales and property taxes.