Retirement Savings Calculator

A common rule of thumb is to save 10–15% of your pre-tax income annually, targeting a nest egg of 25 times your expected annual retirement spending (the '4% rule'). For example, if you plan to spend $50,000 per year in retirement, you'd need approximately $1.25 million saved. This calculator computes your personalized target based on your spending goals, life expectancy, and expected returns.

Most financial planners suggest using 6–7% as a pre-retirement return assumption for a diversified portfolio of stocks and bonds, and 4–5% during retirement when the portfolio typically becomes more conservative. These are long-term historical averages and are not guaranteed. You can adjust these values in the Advanced Assumptions section of this calculator.

Start by maximizing employer 401(k) matching contributions — that's free money. Then consider maxing out tax-advantaged accounts like a Traditional or Roth IRA. Increasing your savings rate by even 1–2% of income per year, automating contributions, and investing early to harness compound growth are the most impactful strategies. This calculator lets you explore how different monthly contribution amounts change your outcome.

The widely cited '4% rule' suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation annually. For a $1 million portfolio, that means roughly $40,000 per year, or about $3,333 per month. This rule is designed to make savings last approximately 30 years under historical market conditions, though actual results will vary.

How long your money lasts depends on your total savings, monthly withdrawal amount, investment return during retirement, and inflation rate. This calculator estimates your projected balance at retirement and compares it against your spending needs through your expected life expectancy, giving you a clear picture of whether your plan is sustainable.

Inflation erodes purchasing power over time — at 3% annual inflation, $4,000 per month today will require about $7,200 per month in 20 years to maintain the same lifestyle. This calculator accounts for inflation by projecting your required retirement spending in future dollars, ensuring your savings target reflects real purchasing power needs.

The most common retirement income sources include Social Security benefits, employer pension plans, 401(k) and 403(b) accounts, IRAs (Traditional and Roth), personal savings and investments, rental income, and part-time work. Social Security alone typically replaces 30–40% of pre-retirement income, so personal savings remain critical. Use the 'Other Monthly Retirement Income' field to include these sources in your plan.

The earlier the better — compound interest means money saved in your 20s and 30s grows far more than the same amount saved later. Waiting just 10 years to start can reduce your ending balance by 50% or more. Even small contributions made consistently over decades can result in significant wealth by retirement.