Retirement Calculator
Project your retirement savings and estimate your monthly retirement income.
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How the Retirement Calculator Works
Our retirement calculator projects how much you'll have saved by the time you retire, based on your current age, retirement age, current savings, monthly contributions, and expected investment returns. It also estimates your monthly retirement income using the popular 4% withdrawal rule and shows a year-by-year growth chart.
How Retirement Savings Are Calculated
The calculator compounds your current savings and monthly contributions at your expected annual return rate until your retirement age. Each year, your balance grows by the annual return, and your monthly contributions are added:
Balance = (Previous Balance × (1 + r)) + (Monthly Contribution × 12)
Where r is the annual return rate as a decimal (e.g., 7% = 0.07).
The 4% Rule
The 4% rule is a widely used guideline for retirement withdrawals. It suggests that you can safely withdraw 4% of your retirement savings each year without running out of money for at least 30 years. This calculator uses your withdrawal rate (default 4%) to estimate your annual and monthly retirement income:
Annual Income = Total Savings × (Withdrawal Rate / 100)
Monthly Income = Annual Income / 12
How Much Should You Save for Retirement?
A common rule of thumb is to save 10–15% of your gross income for retirement, starting in your 20s. Other guidelines include:
- Save 1x your salary by age 30
- Save 3x your salary by age 40
- Save 6x your salary by age 50
- Save 8x your salary by age 60
- Save 10x your salary by age 67 (full retirement age for many)
Tips for a Secure Retirement
- Start saving as early as possible — compound interest rewards time.
- Take full advantage of employer 401(k) matches — it's free money.
- Maximize contributions to tax-advantaged accounts (401k, IRA, Roth IRA).
- Gradually shift to a more conservative investment mix as you approach retirement.
- Consider delaying Social Security to increase your monthly benefit.
- Account for inflation — use a real return rate (nominal return minus inflation).
Understanding the 4% Rule in Practice
The 4% rule originates from the Trinity Study, which tested how different withdrawal rates would have performed historically across various market conditions. The study found that a 4% initial withdrawal, adjusted for inflation each year, had a high probability of sustaining a portfolio for 30 years. However, the rule assumes a roughly 60/40 stock-to-bond allocation. If your portfolio is more conservative, you may need a lower withdrawal rate. If you retire early or expect a longer retirement period, consider dropping to 3–3.5% to be safe. This calculator lets you adjust the withdrawal rate to see how different scenarios affect your projected monthly income.
Example: A 30-Year-Old Planning for Retirement
Suppose you are 30 years old with $50,000 already saved, contributing $500 per month, expecting a 7% annual return, and planning to retire at 65. Over 35 years, your total contributions come to about $260,000, but your projected balance at retirement could exceed $1 million thanks to compound growth. Using the 4% rule, that translates to roughly $40,000 per year or $3,300 per month in retirement income from your savings alone. Adding Social Security benefits could push your total monthly income even higher. Use this calculator to model your own numbers and see how adjusting your contribution or retirement age changes the outcome.
FIRE (Financial Independence, Retire Early) Considerations
The FIRE movement applies the 4% rule to early retirement. If you want to retire at 45 instead of 65, you need a larger nest egg because your money must last longer. A common guideline is to save 25 times your annual expenses — for example, $1 million for $40,000 in annual spending. This calculator can help you project whether your current savings rate will get you there. Keep in mind that early retirees face additional risks: longer withdrawal periods, fewer years of compounding, and less margin for market downturns. Many FIRE planners use a more conservative 3.5% withdrawal rate to account for these factors.
Factors That Can Change Your Projection
- Return rate: Even a 1% difference in annual return dramatically changes long-term results.
- Contribution amount: Increasing contributions early has a larger impact than increasing them later.
- Retirement age: Working a few extra years gives your savings more time to grow and reduces the number of years you need to fund.
- Taxes: Withdrawals from traditional 401(k) and IRA accounts are taxed as income, reducing your net spending power.
- Market volatility: Sequence-of-returns risk can deplete a portfolio faster if downturns happen early in retirement.
Frequently Asked Questions
The 4% rule, based on the Trinity Study, suggests that retirees can withdraw 4% of their portfolio in the first year of retirement, then adjust that amount for inflation each year, and have a high probability of the portfolio lasting 30 years. You can adjust the withdrawal rate in this calculator to see how it affects your income.
No, the results are in nominal (future) dollars. To estimate real purchasing power, subtract expected inflation (commonly ~3%) from your annual return. For example, a 7% nominal return minus 3% inflation gives a 4% real return, which shows what your savings will be worth in today's dollars.
No, this calculator only projects your personal savings and investment growth. Social Security benefits can supplement your retirement income. You can estimate your Social Security benefit at ssa.gov and add it to the monthly income shown here.
Historically, a diversified stock portfolio has averaged about 10% annually before inflation, or roughly 7% after inflation. More conservative portfolios (bonds-heavy) might return 4–6%. Use a realistic, conservative estimate for planning purposes, and remember that markets fluctuate.