About the Retirement Calculator
A retirement calculator projects the balance you will have at retirement from your current savings, monthly contributions, expected return, and years remaining. It is the calculation that turns a vague intention to save into a number you can act on.
The formula
FV = P(1 + r/12)^(12n) + C · [((1 + r/12)^(12n) − 1) / (r/12)]P is current savings, C the monthly contribution, r the annual return, and n the years to retirement. The result is a nominal balance before inflation adjustment.
How to use this calculator
- 1Enter your Current Age. The field starts at
30, which you can overwrite. - 2Enter your Retirement Age. The field starts at
65, which you can overwrite. - 3Enter your Current Savings ($). The field starts at
50000, which you can overwrite. - 4Enter your Monthly Contribution ($). The field starts at
800, which you can overwrite. - 5Enter your Annual Return (%). The field starts at
7, which you can overwrite. - 6Read the result straight away — it recalculates as you type, so there is no button to press. Use Share to copy a link that reopens the page with your exact numbers filled in.
Worked example
| Input | Value |
|---|---|
| Current Age | 30 |
| Retirement Age | 65 |
| Current Savings ($) | 50000 |
| Monthly Contribution ($) | 800 |
| Annual Return (%) | 7 |
Result
Retirement Nest Egg: $2,016,151.27
Monthly Income (4% rule): $6720.50
Those are the values the page loads with, so you can reproduce this result yourself and then change one field at a time to see what drives the outcome.
Understanding your result
The projected balance only means something against a withdrawal rate. The widely used 4 percent rule suggests a portfolio can sustain annual withdrawals of 4 percent of its starting value, inflation-adjusted, for about thirty years — so a million dollars supports roughly 40,000 a year. That converts an abstract target into an income.
Two adjustments make the projection honest. First, inflation: a million dollars in thirty years buys what about 410,000 buys today at 3 percent inflation. Second, the return assumption — a portfolio shifting toward bonds as retirement approaches will not sustain equity-level returns throughout.
Things worth knowing
- Capture any employer match in full before anything else. It is an immediate return no market can guarantee.
- Express your target in today's money by using a real return of 4 to 5 percent rather than a nominal 7 to 8.
- The 4 percent withdrawal rule is a guideline from historical US data, not a law. Sequence of returns risk is real.
- Catch-up contributions allow higher limits from age 50 in most tax-advantaged accounts.
- Recalculate every few years. Income, expenses, and market conditions all move.
Frequently asked questions
How much do I need to retire?+
A common guideline is 25 times your annual expenses, which corresponds to the 4 percent withdrawal rule. Spending 50,000 a year implies a target near 1.25 million, before allowing for pensions or social security.
How much should I save each month?+
15 to 20 percent of gross income is the usual recommendation for someone starting in their twenties. Starting later requires substantially more, which is why the early years matter disproportionately.
What is the 4 percent rule?+
A guideline suggesting you can withdraw 4 percent of your portfolio in the first year of retirement, adjusted for inflation thereafter, with a high chance of lasting thirty years. It comes from historical US market data and is not guaranteed.
Should I adjust my projection for inflation?+
Yes. Use a real return — roughly nominal minus 3 percent — so the answer is in today's purchasing power. Otherwise the figure looks reassuring but overstates what it will buy.