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Retirement Calculator

Project your retirement savings based on current balance, monthly contributions, and expected return. Free tool — no sign-up required.

Your Details

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At Retirement — Age 65

Projected Balance

$1,188,181

35 years · 7% annual return

💬 In Plain English

If you keep saving $500/month from now (age 30) until age 65, you could have around $1,188,181 by the time you retire. You'll have personally put in $235,000 — the rest, $953,181, is growth your money earned on its own. Using the common "4% rule," that nest egg could support roughly $3,961/month in retirement without running out.

Total Contributions$235,000
Investment Growth$953,181
Est. Monthly Income$3,961/mo
Annual Income (4% Rule)$47,527/yr
● Contributions 20%● Growth 80%
AgeBalance
35$71,237
40$136,784
45$229,705
50$361,432
55$548,171
60$812,898
65$1,188,181

Projections assume a constant annual return and do not account for inflation, taxes, Social Security income, or employer match. Actual results will vary. Consult a certified financial planner before making retirement decisions.

How This Retirement Calculator Works

👋 Simple Explanation

Retirement savings work like a garden: you plant seeds now (your contributions), and over many years they grow into something much bigger than what you planted — thanks to compound interest doing the heavy lifting. The earlier you start, the bigger the harvest, simply because your money has more years to grow.

This tool calculates the future value of your retirement savings using compound interest. It combines two formulas: the future value of your current savings (growing at the expected return rate) and the future value of your ongoing monthly contributions.

FV = P × (1+r)ⁿ + PMT × [(1+r)ⁿ – 1] / r

Where P = current savings, r = monthly return rate (annual ÷ 12), n = months to retirement, and PMT = monthly contribution. The estimated monthly income uses the 4% safe withdrawal rate: annual income = 4% × final balance.

How to Build a Retirement Nest Egg

Always capture your employer's 401(k) match. If your employer matches 50% of contributions up to 6% of your salary, not contributing that 6% is leaving guaranteed money on the table. This is the single highest-return investment available to most workers.

Max out a Roth IRA next. After capturing the 401(k) match, contribute up to $7,000/year (2024) to a Roth IRA. Tax-free growth and withdrawals make Roth accounts one of the most powerful retirement tools — especially for younger investors in lower tax brackets today.

Then maximize your 401(k). After Roth IRA, contribute more to your 401(k) up to the $23,000 annual limit. The tax deferral dramatically increases your effective investment return.

Invest in low-cost index funds. A total market or S&P 500 index fund with a 0.03%–0.10% expense ratio consistently outperforms actively managed funds over 20+ year periods due to lower fees. Keep it simple.

Retirement Calculator — FAQ

How much do I need to retire comfortably?
A widely used guideline is the '25x rule': save 25 times your expected annual retirement expenses. If you plan to spend $60,000/year, aim for $1.5 million. This is based on the 4% safe withdrawal rate, which suggests withdrawing 4% of your portfolio each year has a high probability of lasting 30+ years.
What is a 401(k) and how does it help retirement savings?
A 401(k) is an employer-sponsored retirement plan that lets you contribute pre-tax dollars, reducing taxable income now. Many employers match contributions up to a percentage — that's free money. The 2024 contribution limit is $23,000 ($30,500 if age 50+). Always contribute enough to capture the full employer match first.
What is the difference between a Roth IRA and Traditional IRA?
A Traditional IRA uses pre-tax money (tax deduction now, pay taxes on withdrawal). A Roth IRA uses after-tax money (no deduction now, but qualified withdrawals in retirement are tax-free). The 2024 IRA contribution limit is $7,000 ($8,000 if 50+). Roth IRAs are generally better if you expect to be in a higher tax bracket in retirement.
What annual return should I use in a retirement calculator?
The S&P 500 has historically returned about 10% annually before inflation (roughly 7% after inflation). A diversified portfolio of stocks and bonds typically returns 6%–8% over long periods. For conservative planning, use 6%–7%. For aggressive all-stock portfolios, 8%–10% is reasonable but carries more risk.
What is the 4% safe withdrawal rule?
The 4% rule (from the Trinity Study) suggests withdrawing 4% of your portfolio in year one of retirement, then adjusting for inflation each year. Research shows this approach has historically sustained portfolios for 30+ years. A $1 million portfolio supports approximately $40,000/year ($3,333/month) under this rule.

How Much Do I Need to Retire On?

Jump straight to the nest egg required for a specific retirement income — by withdrawal rate and required monthly savings.