Retirement Calculator
Project your retirement nest egg, see its value in today's dollars after inflation, and estimate your monthly retirement income using the 4% safe withdrawal rule. A free retirement planning tool — no signup.
How the Retirement Calculator Works
The tool combines two formulas. Your existing balance grows at the expected rate of return using compound interest: FV = P(1 + r)^n. Your yearly contributions are treated as an ordinary annuity: FV = C × ((1 + r)^n − 1) / r. Adding the two gives the projected nest egg at retirement age.
Inflation is then applied to convert that future amount into today's dollars, so you can judge real purchasing power. Finally, a 4% annual safe withdrawal rate is divided by 12 to estimate monthly income in today's dollars.
How Much Do You Need to Retire?
A common benchmark is saving 25 times your expected annual retirement spending. If you plan to spend $50,000 a year in today's dollars, aim for roughly $1.25 million in inflation-adjusted savings. Compare that target against the "In Today's Dollars" result above.
If you're behind, increase your annual contribution, push retirement age out by a few years, or accept a lower retirement income. Small changes compound: adding $200 a month at age 30 with a 7% return adds well over $200,000 by age 65.
Picking a Realistic Return Rate
A diversified portfolio heavy in equities has historically returned 6–8% per year after fees over long periods. If you're 25 years from retirement, 6–7% is a reasonable planning rate. Within 10 years of retirement, glide down to 4–5% to reflect a more conservative, bond-tilted allocation.
Use the same calculator with two different return rates to see your best-case and worst-case nest egg, then plan around the lower number.
Why Inflation Matters
At 2.5% inflation, $1 million in 35 years buys roughly $420,000 of today's goods. Always plan in today's dollars — the "In Today's Dollars" output reflects this.
For more on how compounding drives long-term wealth, see our compound interest calculator or browse the blog for savings strategies.
FAQs
How much should I save for retirement?
Aim for roughly 25 times your expected annual retirement spending in today's dollars. Use this calculator to check if your current contributions are on track.
What return rate should I assume?
6–8% per year is reasonable for long-term, equity-heavy investing. Drop to 4–6% closer to retirement.
Does this include Social Security?
No. The monthly income estimate covers withdrawals from your own savings only. Add expected Social Security or pension income on top.
Is this before or after tax?
Pre-tax. Withdrawals from traditional 401(k) or IRA accounts are taxed as income; Roth withdrawals are typically tax-free.
What is the 4% rule?
A starting point for retirement withdrawals: take 4% of your nest egg in year one and adjust for inflation each year, with a high chance of the money lasting 30 years.