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 Plan for Retirement: A Complete Guide
Retirement planning comes down to one core question: will you have enough money to stop working and maintain your desired lifestyle? This calculator projects your savings growth and compares it against how much you'll need — but understanding the underlying principles helps you make smarter decisions along the way.
The 4% Rule and the 25x Savings Target
The 4% rule (also called the Safe Withdrawal Rate) emerged from the Trinity Study and states that if you withdraw 4% of your portfolio in year one of retirement and adjust for inflation each subsequent year, your portfolio has historically lasted 30+ years across market conditions including major downturns.
From this rule comes the 25x savings target: you need 25 times your desired annual retirement income saved. The math: $60,000/year ÷ 4% = $1,500,000. This calculator uses the 25x rule to show whether you're on track.
The Rule of 72 — Understanding Compound Growth
The Rule of 72 is a quick mental shortcut to estimate how long an investment takes to double: divide 72 by your expected annual return rate.
- At 6% annual return: 72 ÷ 6 = 12 years to double
- At 7% annual return: 72 ÷ 7 = ~10.3 years to double
- At 8% annual return: 72 ÷ 8 = 9 years to double
This is why starting early is so powerful. $50,000 invested at 30 at 7% annual return doubles roughly every 10 years: $100,000 at 40, $200,000 at 50, $400,000 at 60. That same $50,000 invested at 40 only reaches $200,000 by 60.
Retirement Savings Benchmarks by Age
A widely-cited guideline (from Fidelity) suggests the following savings milestones based on your current salary:
| Age | Savings Target | Example (at $70k salary) |
|---|---|---|
| 30 | 1× salary | $70,000 |
| 35 | 2× salary | $140,000 |
| 40 | 3× salary | $210,000 |
| 45 | 4× salary | $280,000 |
| 50 | 6× salary | $420,000 |
| 55 | 7× salary | $490,000 |
| 60 | 8× salary | $560,000 |
| 67 | 10× salary | $700,000 |
These are guidelines, not guarantees. Actual needs vary significantly by lifestyle, location, Social Security benefits, and health.
What Return Rate Should You Use?
A diversified portfolio of US stocks (e.g., S&P 500 index fund) has historically returned approximately 10% annually before inflation, or about 7% after inflation. A balanced 60/40 portfolio (stocks/bonds) might return 5–7% nominally. Use a conservative estimate — 6–7% is reasonable for long-term planning.
This calculator uses nominal returns (not inflation-adjusted) and separately adjusts your income target for inflation. Do not double-count by using a real (inflation-adjusted) return rate — the calculator already handles inflation on the income side.
2024 Contribution Limits (Tax-Advantaged Accounts)
- 401(k) / 403(b): $23,000/year ($30,500 if age 50+)
- IRA (Traditional or Roth): $7,000/year ($8,000 if age 50+)
- Self-employed (SEP-IRA): Up to 25% of net self-employment income, max $69,000
Maxing tax-advantaged accounts first is the highest-leverage move in retirement planning. The tax-deferred or tax-free compounding adds meaningfully over decades.
Social Security: The Variable You Can't Ignore
This calculator does not include Social Security. For most Americans, Social Security will provide a meaningful portion of retirement income — the average benefit in 2024 is roughly $1,900/month ($22,800/year). You can check your estimated benefit at SSA.gov. Reduce your "Desired Annual Income" by your expected Social Security amount for a more accurate savings 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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