Retirement Calculator
Project your retirement savings, income, and how long your nest egg will last.
Retirement Projection
What is a Retirement Calculator?
A retirement calculator estimates whether your current savings and ongoing contributions will grow into a nest egg large enough to support your lifestyle after you stop working. By combining the compound growth of money you have already saved with the future value of regular monthly deposits, this retirement calculator projects your balance at retirement, the income it can safely produce, and how long the money will last.
Because investment returns compound, dollars saved in your 20s and 30s do far more work than dollars saved in your 50s. Factoring in returns, inflation, and monthly expenses gives you a realistic picture of your financial future and reveals whether you must save more, work longer, or adjust your spending while there is still time to course-correct.
How to Use
- Enter your current age and the age at which you plan to retire.
- Input your existing retirement savings (across 401(k), IRA, and brokerage accounts) and the amount you expect to contribute each month.
- Provide your expected annual investment return and estimated inflation rate.
- Enter your expected monthly expenses in retirement, then click Calculate.
The results show your projected savings at retirement, how many years the fund will last, the annual income a 4% withdrawal rate provides, and any surplus or shortfall against your required nest egg.
The Formulas Behind a Retirement Projection
Your projected nest egg is the sum of two pieces: growth of the money already saved, plus the accumulated value of your future monthly contributions.
1. Growth of your current savings
A lump sum invested today grows with annual compounding:
FV = S × (1 + r)^n
- FV — future value of your current savings
- S — the amount you have already saved
- r — expected annual return (for example, 7% = 0.07)
- n — number of years until retirement
2. Future value of monthly contributions
Regular deposits grow as an annuity, compounded monthly:
FV = PMT × [((1 + r/12)^(12n) − 1) ÷ (r/12)]
- PMT — your monthly contribution
- r/12 — the monthly rate of return
- 12n — the total number of monthly deposits
The sum of the two results is your projected savings at retirement — exactly what this tool computes.
Worked Example: Saving $500 a Month from Age 30
Suppose you are 30 years old, plan to retire at 67, already have $25,000 saved, contribute $500 per month, and earn a 7% average annual return. That gives your money 37 years — 444 monthly deposits — to compound.
- Growth of current savings:
25,000 × 1.07^37 = $305,590 - Future value of contributions:
500 × [(1 + 0.07/12)^444 − 1] ÷ (0.07/12) = $1,048,272 - Projected nest egg: $305,590 + $1,048,272 = $1,353,863
You would have contributed only $222,000 out of pocket, plus your original $25,000 — about $247,000 in total. The other $1.1 million comes entirely from compound growth. Under the 4% rule, that nest egg supports about $54,155 per year, or $4,513 per month, of retirement income before Social Security or pensions.
The 4% Rule: Turning a Nest Egg into Income
The 4% rule is a widely used retirement guideline: withdraw 4% of your portfolio in the first year, then raise that dollar amount with inflation each year, and a balanced portfolio has historically lasted at least 30 years.
| Portfolio at Retirement | Annual Income (4%) | Monthly Income |
|---|---|---|
| $250,000 | $10,000 | $833 |
| $500,000 | $20,000 | $1,667 |
| $750,000 | $30,000 | $2,500 |
| $1,000,000 | $40,000 | $3,333 |
| $1,250,000 | $50,000 | $4,167 |
| $1,500,000 | $60,000 | $5,000 |
| $2,000,000 | $80,000 | $6,667 |
The rule also works in reverse: multiply the annual income you need from savings by 25 to estimate your target nest egg. Needing $50,000 per year from your portfolio means aiming for roughly $1.25 million.
How Starting Age Changes Everything
Time is the most powerful ingredient in compounding. Assuming a 7% annual return and retirement at 67, the table shows what $500 per month grows to from each starting age, and the monthly contribution needed to reach $1 million.
| Starting Age | Years to Grow | Nest Egg at 67 ($500/mo) | Monthly Savings for $1M |
|---|---|---|---|
| 25 | 42 | $1,521,854 | $329 |
| 30 | 37 | $1,048,272 | $477 |
| 35 | 32 | $714,206 | $700 |
| 40 | 27 | $478,553 | $1,045 |
| 45 | 22 | $312,323 | $1,601 |
| 50 | 17 | $195,063 | $2,563 |
| 55 | 12 | $112,347 | $4,450 |
| 60 | 7 | $53,999 | $9,259 |
Waiting from age 25 to age 40 cuts the ending balance by more than two-thirds, even though you skip only 15 years of deposits. Starting early matters far more than saving larger amounts later.
Where to Save: 401(k), IRA, and Roth Accounts
The account you save in can be worth as much as an extra percentage point of annual return. A few pointers:
- 401(k): contributions are pre-tax, lowering taxable income today. Always contribute enough to capture the full employer match — an instant, guaranteed return.
- Traditional IRA: tax-deferred growth similar to a 401(k); useful if your employer plan has limited investment choices or no match.
- Roth IRA or Roth 401(k): funded with after-tax dollars, but growth and qualified withdrawals are tax-free — valuable if you expect a higher tax bracket later.
- IRS contribution limits rise periodically with inflation, so check the current limits each year, particularly once you qualify for age-50 catch-up contributions.
Frequently Asked Questions
What is the 4% rule?
The 4% rule is a common retirement guideline suggesting you can safely withdraw 4% of your nest egg in the first year and adjust for inflation afterward without running out of money over a 30-year retirement.
How does inflation affect my retirement?
Inflation erodes purchasing power over time. Our calculator models inflation-adjusted withdrawals so you can see how rising costs impact the longevity of your savings.
What annual return should I assume?
A conservative long-term average for a balanced portfolio is 6-7% before inflation. As you approach retirement, many advisors recommend reducing this assumption to reflect a more conservative allocation.
How much do I need to retire comfortably?
A common target is 25 times the annual income you want from your savings, which corresponds to a 4% withdrawal rate. For example, generating $50,000 per year requires about $1,250,000. Social Security and pension income reduce the amount your portfolio must provide.
Is it too late to start saving at 40 or 50?
No, but the required monthly contribution rises sharply the later you start. Reaching $1 million by age 67 at a 7% return takes about $477 per month from age 30, roughly $1,045 per month from age 40, and about $2,563 per month from age 50. Catch-up contributions to 401(k) and IRA accounts can help close the gap.
Does this calculator include Social Security?
No. The projection covers only your personal savings. Estimate your Social Security benefit at ssa.gov and subtract it from your expected monthly expenses before entering them here, so the calculator sizes the nest egg your portfolio alone must support.
What if my fund runs out too early?
If the calculator shows a shortfall, consider increasing monthly contributions, delaying retirement, reducing expenses, or seeking higher returns through diversified investments.