Retirement Calculator
See whether you're on track to retire. Enter your age, savings, contributions and income goal to project your nest egg, the amount you need and how long your money will last.
Balance by age
- Saving years
- Retirement drawdown
- Amount needed at retirement
Year-by-year projection
| Age | Year | Contributions | Growth | Withdrawal | End balance | In today's money |
|---|
Estimates only, not financial advice. Real returns vary from year to year, and taxes and fees are not modelled. Consider talking to a qualified financial adviser.
How to use the Retirement Calculator
- Enter your ages: current age, the age you plan to retire and your life expectancy.
- Add your savings: what you have now, your monthly contribution and how much you'll raise it each year.
- Set the assumptions: expected returns before and after retirement, and inflation.
- Set your income goal in today's money, as an amount or a % of your current income, plus any other income such as Social Security.
- Press Calculate to see your nest egg, the amount needed, any shortfall, and the chart and table of your balance by age.
How much do I need to retire? The formula
The calculator works out your target in three steps:
- Income gap = desired yearly income − other income (Social Security, pensions), in today's money.
- Amount needed = income gap ÷ safe withdrawal rate. At 4% this is the gap × 25.
- Future value of that target = amount needed × (1 + inflation)years to retirement, because prices will be higher by the time you retire.
Your projected nest egg grows your current savings and monthly contributions (raised each year by your contribution increase) at the pre-retirement return, compounded monthly. The difference between the two is your surplus or shortfall.
Worked example
A 35-year-old wants $60,000 a year in retirement at 67 and expects $24,000 a year from Social Security. The gap is $36,000, so at a 4% withdrawal rate they need 36,000 ÷ 0.04 = $900,000 in today's money. With 2.5% inflation over 32 years prices rise by a factor of 1.02532 ≈ 2.20, so the nominal target is about $1,983,000.
They have $50,000 saved and put in $600 a month, raised 2% a year, earning 7%. After 32 years that grows to about $1,450,600 (about $658,200 in today's money), a shortfall of roughly $532,800. The calculator shows how much extra to save each month to close it and at what age the money would run out if nothing changes.
Savings needed for each $10,000 of yearly income
| Withdrawal rate | Multiply the gap by | Savings per $10,000 a year | Typical view |
|---|---|---|---|
| 3% | 33.3 | $333,333 | Very cautious, early retirement |
| 3.5% | 28.6 | $285,714 | Cautious, long retirement |
| 4% | 25 | $250,000 | Classic “4% rule” for about 30 years |
| 5% | 20 | $200,000 | Higher risk of running out |
The 4% rule comes from studies of historical US stock and bond returns, where withdrawing 4% of the starting balance, adjusted for inflation each year, lasted at least 30 years in most periods. It is a rule of thumb, not a guarantee. This calculator uses steady returns and ignores taxes and fees, so treat the results as estimates only, not financial advice.
Frequently asked questions
How much do I need to retire?
A common rule is 25 times the yearly income you need from savings (the 4% rule). Take your desired retirement income, subtract Social Security and pensions, and multiply the rest by 25. For example, a $36,000 gap needs about $900,000 in today's money.
What is the 4% rule?
It suggests you can withdraw 4% of your savings in the first year of retirement and then raise the amount with inflation each year, with a good chance the money lasts 30 years. Retiring early or wanting more certainty points to a lower rate, such as 3% to 3.5%.
What return should I assume?
Many planners use 5% to 7% a year before retirement for a stock-heavy portfolio and a lower 4% to 5% afterwards as the mix becomes more conservative. Lower assumptions give a safer plan.
Why show results in today's money?
Inflation makes future dollars worth less. Showing the nest egg in today's money tells you what it would buy at today's prices, which makes it easier to compare with your current spending.
How is the extra monthly saving worked out?
The calculator finds how much more you would need to contribute each month from now, rising each year by your contribution increase, so that the projected nest egg exactly reaches the amount needed.
Does this include taxes and fees?
No. Withdrawals from tax-deferred accounts are usually taxed, and investment fees reduce returns. Treat the results as estimates only, not financial advice, and consider speaking with a qualified adviser.