Understand Savings Rate, Total Savings Rate, and Investment Rate

Learn how actual deposits, withdrawals, debt paydown, and income produce Hugo’s three saving metrics.

Written by the Hugo team
Updated July 29, 2026 · 1 min read

These metrics use real account activity over the trailing 12 months, not a budgeted surplus.

Savings Rate

net deposits into cash/savings and investment accounts ÷ annual income × 100

Net deposits equal deposits minus withdrawals. Only accounts with flow tracking and appropriate asset classes contribute. Entering income without recording account flows is not enough.

Total Savings Rate

(net deposits + reduction in liability balances) ÷ annual income × 100

Paying down debt builds wealth, so a decline in liability balances is added. If total debt grew instead, the negative paydown lowers the rate.

Investment Rate

net deposits into Investments-class accounts ÷ annual income × 100

This excludes ordinary cash and savings. It shows how much annual income was directed specifically into investments.

Improve accuracy

Record deposits and withdrawals on investment and savings products, keep recurring income current, and maintain liability history. Transfers between your own tracked accounts need careful treatment so the same movement does not look like new saving twice.

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