Pay Yourself First Rule Calculation 2026
📑 In this guide
The Core Formula
Savings = income × 20% taken off top before spending.
All figures use 2026 published baselines: federal standard deduction $16,100 (single) / $32,200 (married filing jointly), Social Security wage base $184,500, and the FLSA 40-hour workweek (2,080 hours/year). For state-specific rates, see the State Money Data hub.
Step-by-Step: Running the Math Yourself
- Auto-transfer 20% at payday.
- Live on remainder.
- Raise % with raises.
- Compound over time.
$4,000/mo → $800 auto-saved before bills.
Frequently Asked Questions
Q: What %?
Start 10%, aim 20%.
Q: Before or after tax?
From net, right at payday.
Related Calculators
- Savings Goal Calculator — free calculator
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- Envelope Budgeting System Modern Digital Version
- Sinking Fund Categories List Monthly Save Targets
Educational estimate only — not financial, tax, or legal advice. Verify with a CPA, tax professional, or state labor agency before acting. Data retrieved 2026-08-29.
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Sources & compliance. Work-hours and overtime calculators comply with official FLSA standards published by the U.S. Department of Labor, including the 40-hour workweek overtime threshold, 1.5× time-and-a-half pay, state-specific overtime regulations, and exempt/non-exempt employee criteria (29 CFR Part 541, effective May 15, 2026). All results are for educational estimation only and are not professional financial, legal, or tax advice. Updated 2026-08-29 by AllMoneyCalc Editorial.