Retirement Savings Calculator
This free retirement savings calculator projects how much your savings will grow by the age you want to retire, based on what you have today, what you add each month and an expected annual return. It then compares the result with the nest egg you would need for the monthly income you want, so you can see at a glance whether you are on track.
How to use the retirement savings calculator
- Enter your current age and the age you plan to retire.
- Enter what you have already saved for retirement.
- Enter how much you can add every month.
- Enter an expected annual return (many plans use 5% to 7% for a diversified portfolio).
- Enter the monthly income you would like in retirement, then press Calculate My Retirement.
How the projection works
Your current savings grow with monthly compounding: savings × (1 + r)n, where r is the annual return ÷ 12 and n the number of months until retirement. Each monthly contribution also grows from the month it is added, which is the future value of a series of payments: contribution × ((1 + r)n − 1) ÷ r. The projected total is the sum of both.
How much do you need? The 25× rule
The target uses the widely quoted 25× rule: multiply the yearly income you want from your savings by 25. It comes from the “4% rule”, the idea that withdrawing about 4% of a balanced portfolio in the first year, then adjusting for inflation, has historically lasted around 30 years. Wanting $3,000 per month ($36,000 per year) gives a target of $900,000. If you expect a pension or social security, subtract it from the income you need before entering it.
Worked example
A 30-year-old with $10,000 saved who adds $500 a month until 65 at an average 7% return would have about $1,015,600. Only $210,000 of that comes from contributions and $10,000 from the starting balance; the rest is investment growth. That is above the $900,000 target for $3,000 a month, so this plan is on track.
Why starting early matters so much
| Start saving at | Monthly saving | Balance at 65 (7% return) |
|---|---|---|
| 25 | $300 | about $787,400 |
| 35 | $300 | about $366,000 |
| 45 | $300 | about $156,300 |
Waiting ten years to start roughly halves the final balance, even though the monthly amount is the same, because the money has less time to compound. If you start later, a higher monthly contribution or a later retirement age can close the gap.
Ways to close a retirement gap
- Increase your monthly contribution, even by a small amount, and raise it with every pay rise.
- Use employer matching or tax-advantaged retirement accounts where available.
- Retire a few years later: you save for longer and need the money for fewer years.
- Reduce investment fees; a lower fee leaves more of the return in your account.
- Plan for a smaller monthly income need, for example by paying off your home before retiring.
Frequently asked questions about retirement savings
What return rate should I use?
For a diversified stock and bond portfolio many people plan with 5% to 7% per year. Use a lower rate to be conservative; returns are never guaranteed.
Does the calculator include inflation?
Not directly. To think in today’s money, subtract expected inflation from the return, for example 7% − 2.5% = 4.5%.
Is the 25× rule always safe?
It is a guideline based on historical data for about 30 years of withdrawals. Retiring early, high fees or poor markets early in retirement can require a larger amount.
Should I count my pension or social security?
Yes. Subtract the monthly amount you expect from them from the income you need, and enter only the difference.
How often should I recheck my plan?
Once a year, or whenever your income, savings or goals change.
Related tools
- Compound Interest Calculator – growth of a single lump sum.
- Salary After Tax Calculator – decide what share of net pay to save.
- Age Calculator
- Guide: how compound interest works
- All free tools
Further reading: the Trinity study behind the 4% rule. Estimates only, not financial advice.