Retirement Savings Calculator
Find out how much your retirement savings could grow — and how much monthly income they could generate. Enter your current savings, monthly contributions, expected return, and target retirement age.
How Much Do You Need to Retire?
The classic rule of thumb is the 25× rule: save 25 times your expected annual retirement spending. This corresponds to a 4% annual withdrawal rate, which research suggests has a very high probability of lasting 30+ years in a diversified portfolio.
Examples:
- Spend $40,000/year → need ~$1,000,000
- Spend $60,000/year → need ~$1,500,000
- Spend $80,000/year → need ~$2,000,000
These are nominal figures. Inflation will erode purchasing power — the calculator above also shows your projected nest egg in today's dollars so you can set a more meaningful savings target.
The 4% Rule
The 4% withdrawal rate comes from the Trinity Study (1998), which analysed 50-year retirement periods across historical US market data. The study found that a 4% initial withdrawal rate (adjusted for inflation each year) had a 95%+ success rate for a 30-year retirement using a 60/40 stock/bond portfolio.
Considerations:
- The rule was designed for 30-year retirements. Early retirees (retiring at 50–55) may want a 3–3.5% rate to account for 40+ year horizons.
- It assumes a broadly diversified portfolio, not cash or a single asset class.
- Flexible spending (reducing withdrawals in down-market years) dramatically improves success rates.
The Power of Starting Early
Time is the most powerful variable in retirement planning. The Compound Interest Calculator illustrates this clearly — small differences in time horizon produce enormous differences in outcome due to exponential growth.
Example: $500/month at 7% return
- Starting at age 25 → ~$1,300,000 at 65 (40 years)
- Starting at age 35 → ~$600,000 at 65 (30 years)
- Starting at age 45 → ~$260,000 at 65 (20 years)
The 25-year-old contributes only $60,000 more than the 35-year-old ($240k vs $180k) but ends up with $700,000 more — that difference is entirely compounding.
401(k), IRA, and Contribution Limits
For US savers, tax-advantaged accounts significantly accelerate retirement savings:
| Account | 2025 Contribution Limit | Key feature |
|---|---|---|
| 401(k) / 403(b) | $23,500 (+$7,500 catch-up if 50+) | Pre-tax or Roth; employer match |
| Traditional IRA | $7,000 (+$1,000 catch-up if 50+) | Pre-tax (if eligible); tax-deferred growth |
| Roth IRA | $7,000 (+$1,000 catch-up if 50+) | After-tax; tax-free withdrawals in retirement |
| SEP-IRA (self-employed) | 25% of net earnings up to $70,000 | Pre-tax; no employee contributions |
Always contribute enough to your 401(k) to capture the full employer match — that's an instant 50–100% return on those dollars.
Frequently Asked Questions
What return rate should I use?
A commonly used long-term projection for a diversified US equity index is 7% nominal (or roughly 4% real after ~3% inflation). For a balanced 60/40 portfolio, 5–6% nominal is more conservative and reasonable. Avoid using recent bull-market returns (10–15%) as a planning assumption.
Does this include Social Security?
No. Social Security income should be added to your monthly withdrawal estimate to determine total retirement income. You can estimate your Social Security benefit at ssa.gov.
What is inflation-adjusted value (today's dollars)?
The calculator divides the nominal future value by (1 + inflation rate)^years to express your projected nest egg in current purchasing power. If you project $1.5M in 30 years at 3% inflation, that's equivalent to about $618,000 in today's dollars.
Should I pay off debt or invest for retirement?
A general rule: always capture your employer's 401(k) match first (free money), then pay off high-interest debt (credit cards, personal loans), then max retirement accounts. Low-interest debt (mortgage, student loans under 5%) can be carried while investing, since expected investment returns exceed the interest cost.
