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Retirement Calculator
Project your retirement savings and see how much monthly income your nest egg will generate.
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Projected Retirement Savings
Annual Retirement Income
Monthly Retirement Income
Inflation-Adjusted Value
Calculated in your browser. We never see your numbers.
How to Use This Calculator
Enter your current age and the age at which you plan to retire. Add your current retirement savings balance and how much you contribute each month. Set your expected annual investment return (historically the S&P 500 has averaged around 7% after inflation, or ~10% nominal), your expected inflation rate, and your desired safe withdrawal rate. Click Calculate to see your projected savings at retirement, the annual and monthly income your portfolio would generate, and the inflation-adjusted value in today's dollars.
Retirement Savings Formula
The projected savings uses the future value of a growing annuity formula: FV = S × (1 + r)^n + C × ((1 + r)^n − 1) / r, where S is current savings, C is monthly contribution, r is the monthly return (annual rate ÷ 12), and n is the number of months until retirement. For a 0% return, FV simplifies to S + C × n. Annual retirement income = FV × SWR. Inflation-adjusted value = FV ÷ (1 + inflation)^years, expressing projected savings in today's purchasing power.
Example Calculation
Suppose you are 35 with $50,000 saved, contribute $500 per month, expect 7% annual returns, 2.5% inflation, and plan to retire at 65 with a 4% withdrawal rate. Over 30 years (360 months), r = 7%/12 ≈ 0.5833%, and the formula gives a projected balance of roughly $1,370,000. Applying the 4% SWR yields about $54,800 per year — or ~$4,570 per month — in retirement income. The inflation-adjusted value is approximately $660,000 in today's dollars, showing the real purchasing power of your future nest egg.
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Frequently Asked Questions
How much do I need to retire?
The amount you need to retire depends on your expected annual spending and your safe withdrawal rate (SWR). Using the popular 4% rule, you need 25× your annual expenses saved. For example, if you plan to spend $60,000 per year in retirement, you need $1,500,000 in savings. This calculator helps you project whether your current savings trajectory will reach that target.
What is the 4% withdrawal rule?
The 4% rule is a retirement planning guideline suggesting you can safely withdraw 4% of your portfolio each year without running out of money over a 30-year retirement. It's based on historical market data studied by financial planner William Bengen. The rule means your portfolio needs to be 25× your annual expenses at retirement. You can adjust this rate in the calculator — more conservative savers often use 3% to 3.5%.
How does inflation affect retirement savings?
Inflation erodes the purchasing power of your savings over time. A portfolio worth $1,000,000 today will buy far less in 30 years if inflation averages 2.5–3% annually. This calculator shows the inflation-adjusted value of your projected savings — the amount in today's dollars — so you can see its real purchasing power at retirement. High inflation scenarios (5–8%) dramatically reduce real value.
When should I start saving for retirement?
The earlier the better, due to compound interest. Starting at 25 instead of 35 can more than double your ending balance, even with the same monthly contributions, because your money has an extra 10 years to compound. Even small monthly contributions started early can grow significantly. The most important step is starting — then gradually increasing your contributions over time as your income grows.
What is sequence of returns risk?
Sequence of returns risk is the danger that poor market returns early in retirement can permanently damage your portfolio, even if long-term average returns are good. For example, a 30% market drop in your first year of retirement forces you to sell more shares to fund spending — leaving fewer shares to recover when markets rebound. This calculator assumes a fixed average return and doesn't model this risk; consider working with a financial advisor for stress-testing scenarios.
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