Retirement Savings Calculator
This retirement savings calculator shows how much your nest egg could grow by the day you retire. Enter your age, current savings, monthly contribution, and an expected return. The calculator above then projects your balance and estimates your first-year monthly income. Use it to answer one question: am I saving enough?
How it's calculated
The calculator above grows your current savings and future contributions at a fixed annual return until your chosen retirement age. It then applies the 4% rule to estimate a safe yearly withdrawal, which it shows as monthly income.
Two numbers here are assumptions, not promises. The return is a single fixed rate, so real markets will vary year to year. The 4% safe-withdrawal rate is a common planning guideline, not a guarantee. Treat the result as a planning estimate and update it as your savings change. To model a workplace plan specifically, use the 401k calculator.
A worked example
Say you are 40, plan to retire at 67, and have $100,000 saved today. You add $1,000 a month and assume a 7% annual return. The calculator projects $1,515,193 at retirement. Of that, your $100,000 starting balance and $324,000 in contributions over 27 years are the money you put in, while investment growth adds $1,091,193. Notice the gap: growth dwarfs the money you put in, thanks to compounding. At the 4% rule, that balance supports about $5,051 a month in first-year retirement income.
Common mistakes to avoid
- Assuming the fixed return is guaranteed. Real returns swing each year, so treat the projection as an estimate, not a locked-in number.
- Ignoring sequence-of-returns risk. Poor market years early in retirement can shrink a portfolio faster than the 4% rule assumes.
- Waiting to start. Delaying contributions costs you compounding, which does most of the heavy lifting over decades.
- Forgetting inflation. Future dollars buy less, so a projected balance is worth less than it looks today.
- Counting on the 4% rule as a promise. It is a planning guideline, and your safe withdrawal may be higher or lower.
Frequently asked questions
How does this retirement savings calculator work?
This retirement savings calculator grows your current balance and monthly contributions at a fixed annual return until your retirement age. It then applies the 4% rule to estimate your first-year monthly income. The return and withdrawal rate are assumptions, so the result is a planning estimate.
What is the 4% rule?
The 4% rule is a guideline that you can withdraw about 4% of your savings in your first year of retirement. The calculator uses it to estimate monthly income. It is a planning assumption, not a guarantee, because market returns and spending vary.
Why is investment growth larger than what I contribute?
Compounding does the heavy lifting over long periods. In the example above, a $100,000 starting balance plus $324,000 in contributions grows into $1,515,193, with $1,091,193 of that coming from growth alone. The longer your money stays invested, the more this gap widens.
When must I start withdrawing from these accounts?
Age 73 for traditional IRAs and 401(k)s, under the IRS required minimum distribution rules. Roth IRAs are exempt for the owner. Estimate your first required withdrawal with our RMD calculator.
What if real returns are lower than my estimate?
Then your actual balance will be smaller than the projection. The calculator uses one fixed return, but real markets rise and fall. Poor returns early in retirement, called sequence-of-returns risk, can hurt most. Revisit your plan and contributions often.
Does this retirement calculator account for inflation?
The calculator uses a nominal return rate that you supply, so it does not automatically strip out inflation. To think in today's dollars, subtract the inflation rate from your expected return. For example, if you expect a 7% nominal return and 3% inflation, enter 4% as your rate. The calculator will then show your projected balance in today's purchasing power. Alternatively, use the nominal rate and remember the final balance will be worth less in real terms — the Federal Reserve targets 2% annual inflation as a long-run benchmark.