Retirement Calculator
Project your retirement savings and monthly income.
Results update as you type.
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How it works
A retirement calculator projects the nest egg you will accumulate between now and your target retirement date, then shows what that balance could sustainably provide as monthly income. It combines two components: the growth of your existing savings at the expected annual return compounded monthly, and the future value of the steady contributions you add each month across the working years remaining. The result is your projected balance, plus an inflation-adjusted figure that reveals the purchasing power of that amount when you actually retire. The monthly income estimate uses the widely-cited 4% rule, which financial researchers determined lets a diversified portfolio sustain withdrawals for at least 30 years without depleting the principal in most historical market scenarios. Understanding the gap between your projected savings and your income goal is the central purpose of retirement planning. If the monthly income falls short of your target, this retirement calculator reveals how much additional contribution or a few extra working years would close the gap. Remember that Social Security income, pensions, and part-time work can supplement the portfolio withdrawal, and a financial advisor can tailor a sequence-of-returns strategy for your specific situation.
FV = PV×(1+r)^n + PMT×[((1+r)^n − 1)/r]; Monthly income = FV × 0.04 / 12
PV is your current savings, PMT the monthly contribution, r the monthly rate (annual ÷ 12) and n the total months until retirement. The first term compounds existing savings over the full period. The second term sums each contribution's independent compounding from the month it is made to retirement. Dividing by the monthly rate converts the geometric series of contribution payments into a single future-value figure.
Source:U.S. SEC — Investor.gov
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter current age, retirement age, current savings, monthly contribution and expected annual return.
- 2
Adjust the options
Adjust inflation rate if they apply — sensible defaults are already set.
- 3
Read your result
Projected savings updates instantly as you type — no button to press.
Frequently asked questions
How much do I need to retire comfortably?
A common benchmark is 25 times your planned annual spending — derived from the 4% rule, which suggests a 30-year retirement requires a portfolio large enough that withdrawing 4% per year covers your lifestyle. For $60,000 per year in retirement spending that implies a $1.5 million portfolio. Your actual number depends on your Social Security benefit, any pension, healthcare costs, desired lifestyle, and how long you plan to draw down the portfolio.
What is the 4% withdrawal rule?
The 4% rule, derived from the 1994 Bengen study and refined by the Trinity Study, states that withdrawing 4% of your portfolio balance in year one — then adjusting for inflation each subsequent year — historically sustained a 30-year retirement across nearly every historical market cycle, including the Great Depression. The rule assumes a roughly 60/40 stock-bond allocation. Some planners now suggest 3.3% to 3.5% for longer retirements or low-return environments, while others argue 4% remains sound for those with flexible spending.
How does inflation reduce my retirement purchasing power?
Inflation erodes what a dollar buys over time. At 3% annual inflation over 30 years, a dollar today is worth only about 41 cents in future purchasing power — meaning $1 million in projected savings has the purchasing power of roughly $410,000 in today's terms. This is why the inflation-adjusted figure matters more than the nominal projected balance. Holding growth assets like equities in your portfolio is the primary hedge against inflation over long horizons.
Should I use a Roth IRA or traditional 401k?
Both provide tax-advantaged compounding, but the timing of the tax benefit differs. Traditional 401k contributions reduce taxable income now and are taxed on withdrawal. Roth contributions are made with after-tax dollars and withdrawn tax-free in retirement. If you expect a higher tax rate in retirement than today, Roth wins; if you expect a lower rate, traditional wins. Many financial planners suggest diversifying across both to give yourself flexibility around which account to draw from depending on your tax situation in any given retirement year.
What annual return is realistic to assume?
Over long periods, the US stock market has returned roughly 10% nominally and 7% after inflation. A diversified 60/40 stock-bond portfolio has historically returned closer to 7–8% nominally. For planning purposes, most financial advisors suggest using 6–7% for a diversified portfolio to stay conservative, since sequence-of-returns risk — a bad market early in retirement — can permanently impair a portfolio even when long-run averages hold. Lower assumptions build in a safety margin that leaves you pleasantly surprised rather than short.