Retirement Calculator
Project your retirement savings based on current balance, monthly contributions, expected return, and inflation. See how much your nest egg could grow by retirement age and estimate monthly income.
Formulas, assumptions, and rounding are documented in our calculator methodology.
Projected Balance at Age 65
$990,598
after 30 years · $408,113in today's dollars
Retirement Summary
- Projected Balance (nominal)
- $990,598
- Real Balance (today's dollars, 3% inflation)
- $408,113
- Monthly Income (4% rule)
- $3,302/mo
- Monthly Income (inflation-adjusted)
- $1,360/mo
- Annual Withdrawal
- $39,624
Contribution Breakdown
- Total Contributions (you)
- $230,000
- Investment Growth
- $760,598
- Final Balance
- $990,598
Contributions vs. Growth
Financial Disclaimer: Projections assume a constant annual return and do not account for taxes, fees, sequence-of-returns risk, or changes in contribution amounts. The 4% withdrawal rate is a general planning rule; actual sustainable withdrawals depend on market conditions, retirement duration, and spending. This calculator is for educational estimation only and is not financial advice. Consult a licensed financial advisor for personalized retirement planning.
Retirement Projection Formula
Projected balance = FV(current savings) + FV(monthly contributions). FV of current savings = current balance × (1 + annual return)^years. FV of monthly contributions (ordinary annuity) = monthly contribution × [(1 + monthly rate)^months − 1] / monthly rate, where monthly rate = annual return ÷ 12 and months = years to retirement × 12. Real (inflation-adjusted) balance = nominal balance ÷ (1 + inflation rate)^years.
The 4% Rule and Safe Withdrawal Rates
The 4% rule is a starting point for estimating how much you can withdraw annually without running out of money. Annual withdrawal = projected balance × withdrawal rate. Monthly income = annual withdrawal ÷ 12. More conservative planners use 3–3.5% for safety in lower-return environments or longer retirement horizons. The withdrawal rate you need depends on retirement duration, spending flexibility, Social Security income, pension income, and health care costs.
Important Assumptions and Limitations
This calculator assumes a constant annual return and inflation rate throughout the projection period. Real markets are volatile — sequence of returns risk means a market decline early in retirement has a disproportionate impact. This calculator does not account for Social Security income, pension income, Required Minimum Distributions (RMDs), taxes on withdrawals, account fees, or the impact of healthcare costs in retirement. Use this as a high-level starting point and consult a licensed financial advisor for comprehensive planning.
Frequently Asked Questions
- A common guideline is the '25× rule': multiply your expected annual retirement expenses by 25. This comes from the 4% rule — the idea that withdrawing 4% of your portfolio annually has historically sustained a 30-year retirement in most market conditions. Example: if you expect to spend $60,000/year in retirement, you need approximately $1.5 million. This is a rough planning benchmark, not a guarantee.
- A common long-term planning assumption for a diversified equity portfolio is 7% per year (nominal), which accounts for roughly the historic average stock market return minus average inflation. For a balanced portfolio (stocks and bonds), 5–6% is more commonly used. Conservative portfolios closer to retirement often use 4–5%. These are estimates, not guarantees of future performance.
- The 4% rule (Bengen, 1994) suggests that withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation each year, has historically sustained a portfolio for at least 30 years in most market conditions studied. It is a planning guideline, not a guarantee — actual results depend on market sequence, fees, spending flexibility, and portfolio allocation.
- Inflation erodes purchasing power over time. At 3% annual inflation, $1,000 today is worth only $412 in 30 years in real terms. A balance of $1.5 million in 30 years at 3% inflation has the purchasing power equivalent of about $618,000 today. This calculator shows both nominal balance and real (inflation-adjusted) balance to help you plan in today's dollars.
- The earlier the better — compound growth favors time above all other factors. Saving $300/month from age 25 to 65 at 7% produces approximately $800,000. Starting the same plan at age 35 produces about $380,000 — less than half — for identical total contributions. The 10-year head start roughly doubles the outcome because of compounding.