The process of deriving saving curve may be described as under :
1. CC is a straight line consumption curve.
2. Now we shall draw income curve from the point of origin which is 45° angled curve.
Income (Y) = Consumption (C) + Saving (S)
3. At zero level of income, there is an autonomous consumption of OC. The corresponding saving at this income level is (-)OC. The saving curve starts at (- )C.
4. At the income level OB, where the 45° reference line intersects the consumption curve, C = Y. At this income level, saving is equal to zero. Thus, we get point B on the v-axis of the saving curve.
5. By connecting (-)C and B, we get the saving curve.
Following diagram shows the derivation of saving curve from straight line consumption curve :