Author Topic: How do you factor in loans when calculating savings rate?  (Read 1158 times)

KidneyMD

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How do you factor in loans when calculating savings rate?
« on: December 30, 2014, 09:54:00 PM »
This is the first year I'll truly be calculating a savings rate for myself as a percentage of net income. However, a portion of my net income went towards paying down loan interest and principal from medical school debt and I'm not sure how exactly to factor it into an equation for calculating my savings rate. What do other people do who have loans they are still paying off?

MDM

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Re: How do you factor in loans when calculating savings rate?
« Reply #1 on: December 31, 2014, 01:05:35 AM »
Probably need to understand why you want to calculate a savings rate.  If it's "just because," then any approach is defensible.

If you are looking to calculate time to FI, see http://forum.mrmoneymustache.com/ask-a-mustachian/simplify-the-shockingly-simple-math/msg485772/#msg485772 (and other posts in that thread) for some background and choose according to you situation.