Retirement Calculator
This retirement calculator projects what your savings could grow to by the time you retire, then translates that number into something more useful: the monthly income it could sustainably provide. Enter your age, planned retirement age, current savings, monthly contribution, and an expected annual return, and the projection updates instantly.
Because a dollar decades from now won't buy what it buys today, the calculator also shows your nest egg and income in today's dollars, using the inflation rate you choose. That inflation-adjusted view is the honest one — it's the difference between a number that sounds impressive and knowing whether you could actually live on it.
How it works
The calculator compounds your current savings and monthly contributions month by month from now until your retirement age, using your expected annual return. At retirement, it applies your chosen withdrawal rate (4% is the classic rule of thumb) to estimate a sustainable annual income, divided into monthly terms. Finally, it discounts both figures by your inflation assumption to show what they'd be worth in today's purchasing power.
Formula
The annual return is treated as an effective annual rate, so the monthly rate is i = (1 + r)1/12 − 1 — this way "a 7% return" means your money actually grows 7% per year. Over n months, savings grow to FV = S(1 + i)n + PMT × ((1 + i)n − 1) / i. Today's-dollar values divide by (1 + inflation)years, and estimated monthly income is FV × withdrawal rate ÷ 12.
Worked example
A 30-year-old with $50,000 saved who contributes $500 a month at a 7% annual return until age 65 would accumulate about $1.39 million. At a 4% withdrawal rate, that supports roughly $4,630 a month. Adjusted for 2.5% inflation over those 35 years, the nest egg is worth about $586,000 in today's dollars — roughly $1,950 a month of today's purchasing power.
This calculator is for informational purposes only, not professional advice. Projections assume constant returns and inflation, and exclude taxes, fees, Social Security, and pensions. Consult a qualified financial advisor before making retirement decisions.
Frequently asked questions
How much money do I need to retire?
A widely used shortcut is the 25x rule: multiply your desired annual spending in retirement by 25. If you want $60,000 a year from savings, that suggests a $1.5 million target. The rule is simply the 4% withdrawal rate turned around, and it ignores Social Security, pensions, and part-time income, all of which reduce the amount your portfolio must supply. Treat it as a starting point, not a verdict.
What is the 4% rule and is it still reliable?
The 4% rule comes from research showing that retirees who withdrew 4% of their portfolio in year one, then adjusted that amount for inflation annually, historically avoided running out of money over 30-year retirements. It remains a reasonable planning benchmark, though some advisors suggest 3-3.5% for early retirees or conservative assumptions about future returns. It is a rule of thumb for planning, not a guarantee.
What annual return should I assume?
Diversified stock portfolios have historically returned about 7-10% per year before inflation, while bonds have returned less, so a blended portfolio might average 5-7%. Many planners use 6-7% for long horizons and shift lower as retirement approaches and portfolios get more conservative. Running the calculator with a pessimistic and an optimistic rate brackets the range of realistic outcomes better than any single number.
Why show the results in today’s dollars?
Inflation quietly shrinks what a future dollar buys: at 2.5% inflation, $1 million in 35 years buys roughly what $420,000 buys today. The nominal projection tells you what your statement will say; the today’s-dollars figure tells you what it will feel like. Planning against the inflation-adjusted number keeps you from anchoring on a total that sounds like more than it is.
Does this calculator include Social Security or a pension?
No — it projects only the savings and contributions you enter. Social Security replaces a meaningful share of income for most retirees (the average benefit is around $1,900 a month), and any pension adds more. To account for them, estimate your benefit and subtract it from the monthly income you need; your savings only have to cover the gap, which can lower your target substantially.
How much difference does retiring a few years later make?
A surprisingly large one, because delay works on three fronts at once: more contributions go in, the balance compounds longer, and retirement itself is shorter. In the worked example above, retiring at 67 instead of 65 grows the nest egg from about $1.39 million to about $1.60 million — roughly 15% more income for two more working years. The same lever works in reverse if you retire early.