How much do I need to retire?

A common guideline is 25 times your expected annual expenses (the 4% rule). If you need $60,000/year, aim for $1.5 million. However, this varies based on retirement age, health costs, lifestyle, and Social Security benefits.

The 4% rule suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation each year. Studies show this approach has a high probability of lasting 30+ years.

Should I use a Roth or Traditional 401k/IRA?

Traditional accounts give tax deductions now but are taxed on withdrawal. Roth accounts are funded with after-tax dollars but grow and are withdrawn tax-free. If you expect higher taxes in retirement, Roth is advantageous.

How does Social Security factor in?

Social Security replaces about 40% of pre-retirement income for average earners. You can estimate your benefit at ssa.gov. Subtract this from your annual needs to determine how much your portfolio must cover.

What if I am behind on retirement savings?

Increase your savings rate aggressively, take advantage of catch-up contributions after age 50, delay retirement by a few years (which dramatically improves outcomes), reduce expected retirement spending, or consider part-time work in retirement.

Retirement Calculator

Find out how much you'll have when you retire — and whether you're on track to get there.

Retirement Calculator

Plan for your retirement savings

Estimate your retirement savings

Current Savings ($)

Monthly Contribution ($)

Annual Return (%)

Years Until Retirement

Formula

FV = PV(1+r)^n + PMT((1+r)^n - 1)/r

What Is a Retirement Calculator?

A retirement calculator is a financial planning tool that estimates how much money you will have saved by the time you stop working. It factors in your current age, the age at which you plan to retire, your existing savings, how much you contribute each month, and the average annual return you expect from your investments. The result is a projected retirement balance — giving you a concrete number to plan around instead of hoping for the best.

Starting early makes a dramatic difference thanks to compound interest. A 25-year-old who saves $300 a month can retire with more money than a 40-year-old saving $800 a month, simply because the investments have more time to grow. Consistent contributions — even small ones — compound into significant wealth over decades. Use this calculator regularly to adjust your savings rate as your income and expenses change, and stay on course toward financial independence.

How to Use This Calculator

1Enter your current age and the age at which you plan to retire to set your time horizon.
2Enter your current retirement savings — the total amount already saved in all retirement accounts combined.
3Enter your planned monthly contribution and the annual return rate you expect from your investment portfolio.
4Click Calculate to instantly see your projected retirement balance, total contributions, and total investment growth.

The Formula Behind the Calculator

FV = PV(1 + r)^n + PMT × [(1 + r)^n − 1] / r

PV  = current savings (present value)
r   = monthly interest rate (annual rate ÷ 12)
n   = number of months until retirement
PMT = monthly contribution amount

This is the future value (FV) formula for a present lump sum plus regular annuity payments. PV is the money you already have saved; it grows at the monthly rate r for n months. PMT is your monthly contribution; each payment also earns compound interest from the moment it is made. Dividing the annual return by 12 converts it to a monthly rate so both terms are on the same time scale.

Worked Examples

Example 1 — Starting at 30, retiring at 65

Age 30, retire at 65 → n = 35 years × 12 = 420 months. Current savings: $20,000. Monthly contribution: $400. Annual return: 7% (monthly rate r = 0.5833%). Using the FV formula: the $20,000 lump sum grows to roughly $219,000, and the $400/month annuity accumulates to approximately $879,000. Total projected balance: about $1,098,000 — just over $1.1 million at retirement.

Example 2 — Starting at 40, retiring at 67

Age 40, retire at 67 → n = 27 years × 12 = 324 months. Current savings: $80,000. Monthly contribution: $800. Annual return: 6% (monthly rate r = 0.5%). The $80,000 grows to roughly $406,000, and the $800/month annuity accumulates to approximately $596,000. Total projected balance: about $1,002,000 — crossing the million-dollar mark even with a later start and lower return, thanks to higher savings.

Example 3 — Starting at 25, retiring at 60

Age 25, retire at 60 → n = 35 years × 12 = 420 months. Current savings: $5,000. Monthly contribution: $300. Annual return: 8% (monthly rate r = 0.6667%). The $5,000 lump sum grows to roughly $83,000, and the $300/month annuity accumulates to approximately $932,000. Total projected balance: about $1,015,000 — showing how a modest monthly contribution started early, at 8% return, can build more than a million dollars by age 60.

Frequently Asked Questions

How much money do I need to retire comfortably?▾

A common benchmark is to save 10–12 times your final annual salary before retiring. For example, if you earn $70,000 a year, you'd aim for $700,000–$840,000. However, the real answer depends on your expected lifestyle, healthcare costs, housing, and how long you live. Running this calculator with different scenarios — conservative, moderate, and optimistic — gives you a personal range rather than a one-size-fits-all number.

What is the 4% rule and how does it affect my retirement number?▾

The 4% rule states that you can withdraw 4% of your retirement portfolio in year one, then adjust that amount for inflation each year, and your money should last at least 30 years. To find your target nest egg, divide your desired annual retirement income by 0.04. If you need $50,000 per year, you need $1,250,000 saved. This rule is a useful starting point, though some financial planners recommend a more conservative 3–3.5% withdrawal rate to account for longer retirements.

What is the difference between a 401(k) and an IRA?▾

A 401(k) is an employer-sponsored plan with higher contribution limits ($23,000 in 2024, plus $7,500 catch-up if you're 50+). Many employers match contributions up to a percentage of your salary — that match is essentially free money. An IRA (Individual Retirement Account) is opened independently, with lower limits ($7,000 in 2024). Both offer traditional (pre-tax) and Roth (after-tax) versions. Ideally, contribute enough to your 401(k) to get the full employer match first, then max out a Roth IRA, then return to the 401(k).

Should I include Social Security in my retirement calculation?▾

Social Security can be a meaningful supplement, but treat it as a bonus rather than the foundation of your plan. Benefits depend on your earnings history and the age you claim (62–70). Claiming at 62 reduces benefits by up to 30%; waiting until 70 increases them by 8% per year beyond full retirement age. Use the SSA's online estimator (ssa.gov) to get a personalized projection, then run this calculator with and without that income to understand how much it offsets your savings requirement.

What if I'm starting late — is it too late to save for retirement?▾

It's never too late, but the strategy shifts. If you're in your 40s or 50s, focus on maximizing contributions: take advantage of catch-up limits in your 401(k) and IRA, cut discretionary expenses, and consider delaying retirement by even a few years — that alone can dramatically improve your balance and reduce the withdrawal period. A part-time income in early retirement (ages 62–67) can also preserve your portfolio during the critical early withdrawal years when sequence-of-returns risk is highest.