Retirement Calculator

Project how much you'll have saved by retirement, then compare it to the nest egg your desired annual income needs (using the 4% safe-withdrawal rule). See whether you're on track or have a gap to close.

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Enter your details and press Project retirement.

How the projection works

Your current savings compound at the expected return, and each monthly contribution grows as an annuity. The projected nest egg is the sum of both:

projected = savings × (1+r)n + PMT × ( (1+r)n − 1 ) ÷ r

The nest egg you actually need comes from the 4% rule — a common guideline that you can withdraw about 4% of your savings in the first year of retirement and adjust for inflation thereafter:

needed = desired annual income ÷ 0.04

Worked example

Age 30, retiring at 65, $20,000 saved, $500/month, 6% return, wanting $40,000/year:

Projected savings: ≈ $874,800.
Nest egg needed: 40,000 ÷ 0.04 = $1,000,000.
Gap: about $125,000 short — raising the monthly contribution closes it.

About the 4% rule

The 4% rule comes from research on historical US market returns suggesting a 4% initial withdrawal (rising with inflation) has a high chance of lasting 30 years. It's a planning rule of thumb, not a guarantee — longer retirements, lower future returns or early bad years may call for a more conservative 3–3.5% rate.

Note: these are nominal figures and ignore inflation's effect on your income goal, taxes, Social Security and pensions. Treat the result as a directional estimate, and revisit it as your situation changes.

Frequently asked questions

How much do I need to retire?

A common starting point is 25 times your desired annual income (the 4% rule). For $40,000 a year, that's about $1,000,000. The exact figure depends on your retirement length, other income and risk tolerance.

What is the 4% rule?

It's a guideline that you can withdraw about 4% of your savings in year one of retirement, then adjust for inflation, with a good chance the money lasts 30 years. Dividing your income goal by 0.04 gives the nest egg needed.

How is my projected balance calculated?

Your current savings compound at the expected return, and each monthly contribution grows as an annuity. The two future values are added to project your balance at retirement.

Does this account for inflation?

Not directly — it uses nominal returns and a fixed income goal. For a real (inflation-adjusted) view, enter your return net of inflation (for example 3–4% instead of 6%) and an income goal in today's dollars.

MB
Mustafa Bilgic · Editor, Calcool
The 4% safe-withdrawal guideline derives from the Trinity Study and related research on historical US returns; it is a rule of thumb, not a guarantee. Projections are nominal estimates. For retirement-planning basics, see the SEC's Investor.gov.

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