Retirement Calculator
Estimate your retirement savings at any age. See your projected balance, whether you're on track using the 25x rule, and how much your investments will grow — with a full guide to retirement planning benchmarks, the 4% rule, and the power of compound interest.
Retirement Projection
How to Use This Tool
- Enter your current age and your planned retirement age.
- Enter your current retirement savings balance and your monthly contribution amount.
- Enter your expected annual return rate (a diversified stock portfolio historically averages around 7% after inflation).
- Enter your desired annual income in retirement (in today's dollars) and your expected inflation rate.
- Read the Projected Balance and compare it to the Savings Target (25x rule) to see your On Track / Shortfall status.
- Check "Est. Years Savings Will Last" to see how long your projected balance would cover your inflation-adjusted income needs.
Formula & How It Works
Projected Savings at Retirement (Future Value of Savings + Contributions)
FV = Current Savings × (1+r)^n + Monthly Contribution × ((1+r)^n − 1) ÷ rr is the monthly return rate (annual return ÷ 12), and n is the total number of months until retirement. The first term grows your existing balance; the second term grows your ongoing monthly contributions.
Inflation-Adjusted Income Target
Future Income Needed = Desired Annual Income × (1 + Inflation Rate)^Years to RetirementProjects today's desired retirement income forward so it reflects what that lifestyle will actually cost in future dollars.
Savings Target (25x / 4% Rule)
Savings Needed = Inflation-Adjusted Income × 25Based on the 4% safe withdrawal rule — if you can withdraw 4% of your portfolio annually, you need 25 times your annual income needs saved (since 1 ÷ 0.04 = 25).
Practical Examples & Common Use Cases
Example 1: 30-year-old saving for 35 years
Current age 30, retiring at 65 (35 years / 420 months), $50,000 current savings, $1,000/month contribution, 7% return. Projected balance ≈ $1,928,000. Desired income $60,000/year adjusted for 3% inflation over 35 years ≈ $168,900/year, so the 25x target is about $4,222,000 — a shortfall requiring higher contributions or a later retirement age.
Example 2: Starting later with higher contributions
A 45-year-old with $200,000 saved, contributing $2,000/month at 7% for 20 years until retiring at 65, projects to roughly $1,470,000. Against a $50,000/year desired income (inflation-adjusted to ~$90,300 in 20 years), the 25x target is ~$2,258,000 — still short, illustrating why starting early matters.
Example 3: On track scenario
A 25-year-old with $10,000 saved, contributing $800/month at 7% for 40 years to retire at 65, projects to about $2,140,000. With a $45,000/year desired income inflation-adjusted to about $146,500/year, the 25x target is $3,662,500 — showing the power of starting decades early even with modest contributions, though still requiring either higher savings or a lower income target.
Frequently Asked Questions
The 4% rule (from the Trinity Study) suggests that withdrawing 4% of your portfolio in the first year of retirement, then adjusting annually for inflation, should make your savings last 30+ years across most historical market conditions. It implies you need 25 times your annual expenses saved. It is a guideline, not a guarantee — some planners now recommend a more conservative 3–3.5% rate.
A common guideline is to have 3 times your annual salary saved by age 40. So if you earn $80,000, you should have approximately $240,000 saved. If you are behind this benchmark, increasing contributions now while time is still on your side makes the biggest difference.
A diversified US stock portfolio has historically returned about 10% nominally or 7% after inflation. A balanced 60/40 stock/bond portfolio returns roughly 5–7% nominally. For conservative planning, use 6–7%. Using a lower rate creates a larger safety margin — if markets do better, you have a surplus.
No. Social Security is not included because benefits vary widely by work history and claiming age. You can find your estimated benefit at SSA.gov. Subtract your expected annual Social Security income from your "Desired Annual Income" for a more accurate savings target.
For 2024, you can contribute up to $23,000 to a 401(k) or 403(b). If you are age 50 or older, a catch-up contribution of $7,500 allows a total of $30,500. IRA contributions are capped at $7,000 ($8,000 if 50+). Maxing these accounts first is generally the optimal strategy due to the tax advantages.
Inflation erodes purchasing power over time. $60,000 today will buy less in 20 or 30 years. At 3% inflation, $60,000 today is equivalent to $108,000 in 20 years. This calculator adjusts your income target for inflation so your savings goal reflects what you will actually need in retirement, not today's dollars.
Common strategies for catching up include: maximizing tax-advantaged accounts (especially catch-up contributions after age 50), delaying retirement by a few years (dramatically increases savings and reduces drawdown period), reducing planned retirement expenses, and considering part-time work in early retirement.
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