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Retirement Calculator

Project your retirement savings growth and check if you're on track to meet your goals.

Project your retirement nest egg

See if your current savings rate puts you on track—and what it takes to reach your target.

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4% is the Trinity Study safe withdrawal rate.

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Used to estimate required nest egg. Assumes expenses stay similar in retirement.

"/> How to use this calculator

  1. Enter your current age and target retirement age—the years between them is your savings window.
  2. Input your current retirement savings across 401(k), IRA, and other investment accounts.
  3. Enter your monthly contribution—include employer match for a complete picture.
  4. Set expected annual returns—use 6–8% pre-retirement and 4–5% in retirement for conservative planning.
  5. Adjust inflation—3% is the long-term US average; use 2.5–3.5% for planning.
  6. Choose your withdrawal rate—4% is the classic safe rate; 3.5% adds extra safety margin.
  7. Enter current annual expenses—the calculator inflates this to retirement-year dollars.
  8. Click Project to see if you're on track and get a suggested monthly contribution if you're behind.
HOW IT WORKS

How retirement projections work

Retirement planning combines three moving pieces: accumulation (growing your savings during working years), inflation (which erodes purchasing power over decades), and withdrawal (drawing down your nest egg sustainably in retirement). A good retirement calculator models all three simultaneously and shows whether your current trajectory will support your target lifestyle.

Phase 1: Accumulation

During your working years, your nest egg grows through two engines: your existing savings compound at the expected return rate, and your ongoing monthly contributions both compound and add new principal. The future value of your current savings follows the compound interest formula A = P(1 + r)^t, where r is the annual return and t is years to retirement. The future value of monthly contributions follows the future value of an annuity: FV = PMT × [((1 + r/12)^(12t) − 1) / (r/12)]. Adding both gives your projected nest egg at retirement.

Phase 2: Inflation

A dollar today buys more than a dollar in 30 years. At 3% inflation, expenses double every 24 years. Your current $60,000 lifestyle will cost roughly $145,000/year in 30 years. Your projected nest egg must be measured against these inflated expenses, not today's prices. This is why retirement calculators show "future dollars"—the inflation-adjusted amount you'll actually need.

Phase 3: The 4% rule and safe withdrawal

The 4% rule, from the 1998 Trinity Study, suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting that dollar amount for inflation each subsequent year. Historically, this gave a 95%+ probability of a portfolio lasting 30 years across a mix of stocks and bonds. The math implies your required nest egg = annual expenses ÷ withdrawal rate. At 4%, $60,000/year in retirement requires $1.5 million. At 3.5%, it requires $1.71 million—a 14% larger target for added safety.

Why withdrawal rate matters so much

The withdrawal rate is the single most sensitive variable in retirement planning. A 1% change (from 4% to 3%, or 4% to 5%) shifts your required nest egg by 25% or more. Lower withdrawal rates are safer but require more savings; higher rates risk running out of money in a market downturn early in retirement (the dreaded "sequence of returns risk"). Conservative planners now recommend 3.5% as the new safe rate given today's lower bond yields and longer lifespans.

Variables that move the needle

Three factors dominate your retirement outcome: starting early (compounding needs time—an investor who saves $5K/year from age 25–35 and stops often outperforms one who saves $5K/year from age 35–65); savings rate (15% of gross income is the standard recommendation, including employer match); and investment fees (a 1% annual fee over 30 years consumes roughly 28% of total returns—use low-cost index funds). You can't control market returns, but you control all three of these.

"/> Worked example

Scenario: Daniel, age 35, wants to retire at 65. He has $75,000 saved, contributes $800/month, expects 7% pre-retirement and 5% post-retirement returns, with 3% inflation and a 4% withdrawal rate. His current annual expenses are $60,000.

  • Years to retirement: 30
  • Future value of $75,000 at 7% for 30 years: $75,000 × (1.07)^30 = $571,286
  • Future value of $800/month at 7% for 30 years: $800 × [((1.00583)^360 − 1) / 0.00583] = $976,086
  • Projected nest egg: $571,286 + $976,086 = $1,547,372
  • Future annual expenses (inflation-adjusted): $60,000 × (1.03)^30 = $145,641
  • Nest egg needed: $145,641 ÷ 0.04 = $3,641,025
  • Annual retirement income at 4% withdrawal: $1,547,372 × 0.04 = $61,895

Verdict: Daniel is behind—his projected nest egg covers only about 42% of his target. To close the gap, he'd need to contribute roughly $2,580/month instead of $800, or retire later, or reduce retirement expenses. This is the kind of insight that makes retirement calculators indispensable: small adjustments now compound into massive differences later.

"/> Glossary

Nest Egg
The total savings and investments accumulated by retirement, used to fund living expenses after you stop working.
4% Rule
A guideline from the Trinity Study suggesting you can safely withdraw 4% of your portfolio in year one of retirement, adjusted for inflation thereafter, with low risk of running out over 30 years.
Sequence of Returns Risk
The danger that market downturns early in retirement disproportionately damage your portfolio, since withdrawals lock in losses. Mitigated by lower withdrawal rates and cash buffers.
Real Return
Investment return minus inflation. A 7% nominal return with 3% inflation equals a 4% real return—what actually grows your purchasing power.
FIRE
Financial Independence, Retire Early—a movement emphasizing 50%+ savings rates to retire decades earlier than the traditional age 65.
Asset Allocation
The mix of stocks, bonds, and cash in your portfolio. Higher equity allocations offer growth; higher bond allocations reduce volatility—critical as you approach retirement.
FAQ

Frequently asked questions

Quick answers to the most common questions about retirement calculator.

How much do I need to retire?
A common rule is 25x your annual expenses (the 4% rule), meaning if you spend $60,000/year, you need $1.5M saved. However, the right number depends on your expected lifespan, lifestyle, healthcare costs, inflation, Social Security, and whether you'll have a pension. Many planners now recommend 30x for added safety.
What is the 4% rule?
The 4% rule, from the Trinity Study, suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation annually. Historically, this gave a high probability of a portfolio lasting 30 years. Some recent research suggests 3.5% may be safer given today's lower bond yields.
How much should I save for retirement each month?
Most experts recommend saving 15% of gross income (including employer match) starting in your 20s. If you start later, you'll need to save more—20%+ in your 30s, 30%+ in your 40s. Our calculator shows exactly how monthly savings impact your projected retirement balance.
Should I use pre-tax or Roth contributions?
Pre-tax contributions (Traditional 401k/IRA) lower current taxes but are taxed on withdrawal. Roth contributions are taxed now but grow tax-free. If you expect to be in a higher tax bracket in retirement, Roth wins; if lower, pre-tax wins. Many savers benefit from diversifying across both.
When can I retire?
Your retirement date depends on your savings rate, expenses, investment returns, and target nest egg. Our calculator projects when your savings will reach your target. Many FIRE (Financial Independence, Retire Early) practitioners retire in their 40s or 50s by saving 50%+ of income.

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This calculator is provided for informational and educational purposes only and does not constitute financial, legal, tax, or professional advice. Results are estimates based on the inputs you provide and standard assumptions. Actual figures may vary. Please consult a qualified professional before making financial decisions. Read our full disclaimer.