Retirement Calculator
Project your retirement savings and estimated annual income. Enter your age, current savings, monthly contributions, and expected return.
Projects 30 years of growth at a steady 6% return. The 4% figure is a common rule of thumb for sustainable yearly withdrawals. Estimates only, not investment advice.
How to use this calculator
Enter the following inputs to project your retirement balance:
- Current age — your age today
- Retirement age — the age at which you plan to stop working and start drawing from savings
- Current savings — the total amount you have already saved across all retirement accounts (401(k), IRA, brokerage, etc.)
- Monthly contribution — how much you add to your retirement savings each month, including any employer match
- Expected annual return — your assumed average yearly return; 6–7% is a common conservative-to-moderate assumption for a diversified long-term portfolio
The result shows your projected balance at retirement, the total you'll have contributed, and an estimate of sustainable annual income using the 4% rule. Try adjusting the monthly contribution or return rate to see how sensitive the outcome is to each variable.
How retirement savings growth works
Retirement savings grow through two mechanisms: your ongoing contributions and investment returns compounding on the balance already accumulated.
Compounding means that each period's return is calculated on a balance that includes all previous returns. Early in your career, contributions drive most of the growth because the balance is small. Over time, as the balance grows, investment returns themselves begin to contribute more than your new deposits. In a long accumulation period — say, 30 years — it's common for investment returns to account for two-thirds or more of the final balance, even with steady contributions.
This is why time is the most powerful variable in retirement planning. Starting 10 years earlier doesn't just add 10 years of contributions — it gives the entire balance an additional decade to compound. Conversely, waiting 10 years to start may require roughly doubling your monthly contribution to reach the same goal.
Worked example — step by step
A 35-year-old with $50,000 already saved, adding $500/month, at an assumed 6% annual return, planning to retire at 65:
- Years to retirement: 30
- Monthly rate: 6% ÷ 12 = 0.5%
- Future value of current savings: $50,000 × (1.005)³⁶⁰ ≈ $302,000
- Future value of monthly contributions: $500 × [(1.005)³⁶⁰ − 1] ÷ 0.005 ≈ $502,000
- Combined projected balance: ≈ $804,000
- Estimated annual income (4% rule): $804,000 × 4% ≈ $32,160/year
Now compare: if that same person had started 10 years later — at age 45 — with the same $50,000 and $500/month at 6%, the projected balance at 65 falls to roughly $330,000, and sustainable income drops to about $13,200/year. The cost of a 10-year delay is approximately $470,000 in projected balance.
How to interpret your result
The projected balance is a nominal estimate — it doesn't account for inflation, taxes on withdrawals, or investment fees. In real purchasing-power terms, the figure will be worth less than its nominal value. A rough adjustment: subtract your expected inflation rate from the assumed return before running the calculator (e.g., 7% return − 3% inflation = use 4% in the calculator for an inflation-adjusted estimate).
The sustainable annual income estimate (based on the 4% rule) is a planning benchmark. It assumes a diversified portfolio and a roughly 30-year retirement horizon. If you expect to retire earlier or live longer, a more conservative withdrawal rate (3–3.5%) may be appropriate.
This number also represents only savings-derived income. Your total retirement income will likely also include Social Security benefits, possibly a pension, and possibly part-time work income. Estimating those separately and adding them gives a more complete picture of retirement readiness.
Common mistakes to avoid
- Using an overly optimistic return rate. Assuming 10–12% annual returns gives a much rosier projection than is typically realistic over the long run, especially in a balanced portfolio. Using 6–7% for a stock-heavy portfolio is more conservative and appropriate for planning.
- Not accounting for investment fees. Mutual fund expense ratios and advisory fees can reduce your effective return by 0.5–1.5% per year. Subtract your estimated fees from the expected return to get a net return to use in the calculator.
- Forgetting taxes on withdrawals. Money in a traditional 401(k) or IRA is tax-deferred, not tax-free. Withdrawals in retirement are taxed as ordinary income. A Roth account, by contrast, allows tax-free withdrawals. Your actual spendable income in retirement may be meaningfully less than the projected balance after taxes are applied to traditional account withdrawals.
- Not revisiting the projection regularly. Market returns vary year to year, contribution levels change, and life circumstances shift. Review your retirement projection at least annually to make sure you're on track.
- Relying solely on the 4% rule. The 4% rule is a useful starting point but was derived from historical U.S. market data and may not hold in all future scenarios. Talking to a financial planner can help you stress-test your retirement plan against different market and longevity assumptions.
Projections are estimates, not investment advice. Returns and inflation vary over time. Consult a financial advisor for personalized guidance.
How we calculate this
We project the retirement balance by applying compound growth monthly: each month, the current balance earns one-twelfth of the annual return rate, and the monthly contribution is added. This is repeated for each month from the current age to the retirement age. Estimated annual income uses the 4% rule (4% of the projected balance), which is a common planning benchmark, not a guarantee. Results are nominal estimates and do not account for taxes, inflation, Social Security, or investment fees.
Sources
Frequently asked questions
How much will I have at retirement?
Your projected balance depends on your current savings, monthly contributions, assumed annual return, and the number of years until retirement. This calculator compounds your existing balance and adds contributions monthly, projecting a future value. The result is an estimate — actual returns vary each year and are not guaranteed.
What is the 4% rule?
The 4% rule is a widely cited retirement guideline suggesting you can withdraw approximately 4% of your portfolio in the first year of retirement and adjust that amount for inflation each subsequent year, with a historically low probability of running out of money over a 30-year retirement. We use it to convert your projected balance into an estimated sustainable annual income. It's a rule of thumb, not a guarantee.
What annual return rate should I assume?
A diversified long-term portfolio of stocks and bonds has historically returned roughly 6–8% per year before inflation, depending on the time period and asset allocation. Using 6% is a reasonably conservative assumption for a stock-heavy portfolio over decades. As you near retirement and shift to a more conservative allocation, a lower assumed return (4–5%) is more appropriate.
How much should I be saving for retirement?
Many financial planners suggest targeting total retirement savings contributions of 10–15% of gross income — including any employer match. The right amount depends on your current savings, the age you want to retire, expected Social Security income, and the lifestyle you want in retirement. Use the calculator to try different monthly amounts and see how each changes the projected outcome.
Does this calculator account for inflation?
No — the projected balance is a nominal (pre-inflation) figure. To estimate real purchasing power, you can subtract an assumed inflation rate from your expected return. For example, if you expect a 7% return and 3% inflation, use a 4% return in the calculator to get an inflation-adjusted estimate.
How does compound interest affect retirement savings?
Compounding means that investment returns earn their own returns in subsequent periods. Over decades, this creates exponential rather than linear growth. A dollar invested at 7% doubles roughly every 10 years. This is why starting early matters so much: a 25-year-old's $100 monthly contribution has 40 years to compound, while the same contribution started at 45 has only 20 years — and the difference in final balance is dramatic.
Should I factor in Social Security?
This calculator focuses on the savings you accumulate directly. Social Security benefits provide additional retirement income for most Americans, based on your earnings history and the age at which you claim. You can estimate your benefit at the Social Security Administration's website (ssa.gov) and add it to this calculator's projected income to get a fuller picture.
What if I start saving later in life?
Starting later means less compounding time, so you'll generally need to contribute more per month to reach the same goal. The calculator makes this concrete: try your current age versus starting a few years ago to see the cost of delay. That said, starting to save at any age is better than not starting, and many people in their 40s and 50s successfully build meaningful retirement balances.