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Retirement Savings Calculator
Find out exactly how much you need to save to retire comfortably
✓ Free Forever
✓ No Signup
✓ Instant Results
How It Works
This retirement calculator uses the future value of an annuity formula to project how much you will have saved by retirement age. It accounts for your current savings, regular monthly contributions, and expected investment returns compounded over time.
The Amount Needed is calculated using the 4% safe withdrawal rule – a widely accepted guideline suggesting you can withdraw 4% of your retirement savings annually without running out of money. To support your desired monthly income, you need 25 times your annual spending (12 months × desired monthly income × 25).
Understanding whether you are on track or facing a shortfall helps you make informed decisions now – whether to increase contributions, adjust retirement age, or recalibrate income expectations.
Frequently Asked Questions
What is the 4% rule?
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The 4% rule is a retirement planning guideline suggesting you can safely withdraw 4% of your retirement savings in the first year, then adjust for inflation annually, with a low risk of running out of money over a 30-year retirement. This means you need 25 times your desired annual income saved (100% ÷ 4% = 25).
What is a realistic annual return rate?
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Historical stock market returns average around 10% annually, but a conservative estimate of 7% accounts for inflation and a diversified portfolio including bonds. More conservative investors might use 5-6%, while aggressive portfolios might assume 8-9%. Your actual returns will vary year to year.
Does this account for inflation?
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The calculator uses nominal (not inflation-adjusted) returns. If you enter 7% annual return and inflation is historically around 2-3%, your real return is about 4-5%. For more accuracy, you can enter your expected real return (after inflation) and think of your desired income in today’s dollars.
What if I am showing a shortfall?
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If you have a shortfall, you have several options: increase your monthly contributions, work a few years longer before retiring, reduce your expected retirement income, or seek higher investment returns (with appropriate risk). Small increases in monthly savings now can have dramatic effects due to compound interest over decades.
Should I include pension or social security?
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This calculator shows your personal savings needs. If you will receive pension or social security income, subtract that from your desired monthly income before entering it here. For example, if you want 5,000 per month total and expect 2,000 from social security, enter 3,000 as your desired income.