Retirement Calculator
Estimate how much you could save for retirement and compare your projected savings with your retirement income goal. Enter your details in the white box. The teal box updates automatically.
How the Retirement Calculator works
This calculator estimates the value of your retirement savings at your planned retirement age using your current savings, monthly contributions and an assumed annual investment return.
Contributions are assumed to be invested at the end of each month. The annual return is converted into an equivalent monthly compounded growth rate.
How much should you save for retirement?
The amount needed for retirement depends on your spending needs, other income sources, retirement duration, investment returns, inflation and taxes.
This calculator estimates a retirement savings target by dividing your desired annual retirement income by your chosen withdrawal rate.
Retirement savings target example
If your desired annual retirement income is $50,000 and you use an assumed withdrawal rate of 4%, the estimated savings target would be $1,250,000.
This assumes the entire target income must come from your retirement savings. It does not subtract Social Security, pensions or other retirement income.
What is the withdrawal rate?
A withdrawal rate is the percentage of your retirement savings used to estimate an initial annual withdrawal.
For example, a 4% withdrawal rate applied to a $1,000,000 retirement portfolio gives an estimated first-year withdrawal of $40,000.
The 4% rate is a commonly discussed retirement planning guideline, not a guaranteed safe withdrawal rate. The appropriate rate depends on personal circumstances, market conditions and retirement duration.
Does this calculator account for inflation?
No. All projected amounts are expressed in future nominal dollars. The calculation does not adjust your retirement income target for inflation between today and retirement.
It also assumes fixed monthly contributions and a constant annual investment return.
Important considerations
This is a simplified retirement planning tool. It does not model market volatility, taxes, investment fees, inflation, retirement spending patterns or how long your savings may last after retirement.
Actual investment returns are uncertain, and retirement income is not guaranteed. Consider professional financial advice for decisions involving retirement planning.