Pay Yourself First Calculator
See how much to set aside the moment you get paid, what is left for bills and guilt-free spending, and how your pay-yourself-first savings grow over the years with compound returns.
How it works
Monthly saving S = income × rate · left to live on = income − S · free to spend = income − S − fixed bills · balance after n months = S × [(1 + i)ⁿ − 1] ÷ i, with i = annual return ÷ 12
“Pay yourself first” means moving a fixed share of every paycheck into savings or investments before paying bills or spending anything, ideally by automatic transfer on payday. Because saving happens first, it does not depend on what is left at the end of the month. The growth projection uses the standard future value of a monthly annuity (deposits at the end of each month, compounded monthly), the same method as the SEC’s Investor.gov compound interest calculator.
Worked example
On 4,000 a month, paying yourself 15% first is 600.00 a month (7,200.00 a year). That leaves 3,400.00; after 2,500 of fixed bills you still have 900.00 of guilt-free spending money. Invested at 6% a year for 20 years, the 144,000.00 you put in grows to about 277,224.54, of which 133,224.54 is investment growth.
Sources: Investor.gov (SEC) — Compound interest calculator · CFPB — Your Money, Your Goals toolkit (saving and budgeting modules)
Frequently asked questions
How much should I pay myself first?
A common target is 10% to 20% of take-home pay. Start with what you can sustain — even 5% — and raise it by 1 percentage point every few months or whenever you get a raise.
Where should the money go?
First an emergency fund in a high-yield savings account, then retirement accounts (especially if your employer matches) and other goals. Automate the transfer for payday so you never see the money in your spending account.
What if my bills are higher than what is left?
Lower the rate for now, cut a fixed cost (housing, car, subscriptions) or raise income. The calculator flags it when fixed bills exceed what is left after saving.
Does retirement saving from my paycheck count?
Yes. Contributions taken from your salary before it reaches you are the purest form of paying yourself first; add them to the rate.
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Educational estimate, not financial advice. Your income, prices, taxes and returns will differ — use it to plan, then check the numbers against your own bank statements and, for big decisions, a qualified adviser.