Retirement Calculator
Estimate your retirement savings and projected monthly income based on your current savings, contributions, and expected investment returns.
How to use this calculator
- Enter your current age and target retirement age.
- Input your existing retirement savings balance.
- Set how much you plan to contribute each month.
- Choose an expected annual return rate (7% is a common long-term average for stocks).
How it works
Your current savings grow using the compound interest formula FV = PV(1+r)^n. Monthly contributions accumulate as a future value of annuity. The monthly retirement income estimate uses the 4% safe withdrawal rule, which suggests you can withdraw 4% of your portfolio annually with low risk of running out over a 30-year retirement.
What Is a Retirement Calculator?
A retirement calculator estimates how much money you'll have saved by the time you retire, based on your current savings, monthly contributions, and expected investment returns. It then uses that total to project how much monthly income you can safely withdraw during retirement.
This calculator uses the widely-referenced 4% rule, which suggests that you can withdraw 4% of your portfolio in the first year of retirement and adjust for inflation each year after that, with a low probability of running out of money over a 30-year retirement. While no rule is perfect, it provides a reasonable starting point for planning.
The key insight from running these numbers is that time matters more than amount. Starting to save at age 25 versus 35 can result in hundreds of thousands of dollars more at retirement, even with the same monthly contribution. This calculator makes that difference tangible so you can plan accordingly.
Frequently Asked Questions
How much do I need to retire?
A common target is 25 times your expected annual expenses in retirement (the inverse of the 4% rule). If you plan to spend $50,000 per year, you'd need about $1.25 million saved. Your actual number depends on your lifestyle, healthcare costs, Social Security benefits, and other income sources.
What is the 4% rule?
The 4% rule comes from the Trinity Study, which found that withdrawing 4% of a diversified portfolio in the first year of retirement (and adjusting for inflation each year) has historically sustained the portfolio for at least 30 years. It's a guideline, not a guarantee, and some financial planners now suggest 3.5% for added safety.
What rate of return should I assume?
The historical average return for a diversified stock portfolio is about 10% before inflation, or roughly 7% after inflation. If you have a more conservative portfolio with bonds, 5-6% may be more appropriate. Use a rate that reflects your actual investment mix.
Does this include Social Security?
No, this calculator only projects your personal savings and investments. Social Security, pensions, or other income sources would be in addition to the amounts shown. You can check your estimated Social Security benefit at ssa.gov to get the full picture.
What if I want to retire early?
Early retirement (before age 59 1/2) may limit access to certain retirement accounts without penalties. You'll also need your savings to last longer, which means you may want to use a lower withdrawal rate like 3-3.5%. Set your retirement age in this calculator to see how much more you need to save.
Example Calculation
A 30-year-old with $50,000 in current savings contributes $1,000 per month and expects a 7% annual return, planning to retire at 65. Here are the projections:
- Years until retirement: 35
- Total contributions: $470,000 ($50,000 + $420,000 in monthly deposits)
- Investment growth: approximately $1,390,000
- Total retirement savings: approximately $1,860,000
- Estimated monthly income (4% rule): approximately $6,200
That $1,000 per month turns into nearly $1.9 million thanks to 35 years of compound growth. If this same person waited until age 40 to start, the total would drop to roughly $920,000 — less than half — even with the same monthly contribution and rate of return.