How this retirement calculator works
Enter your current age, retirement age, savings and monthly contribution, along with the annual return you expect and how fast you'll raise your contributions. The calculator compounds your savings month by month up to retirement and shows the result in both future dollars and today's dollars, adjusted for inflation.
It then compares that with your goal. Your goal is the income you want each year (in today's dollars) minus other income such as Social Security, divided by your withdrawal rate. At the classic 4% rate, you need 25 times your yearly shortfall saved.
The 4% rule
The 4% rule of thumb says you can withdraw about 4% of your portfolio in the first year of retirement, then adjust that amount for inflation each year, with a good chance your money lasts about 30 years. It's a starting point: a longer retirement may call for a lower rate, and flexibility in spending helps.
Ways to close a retirement gap
- Increase contributions with every raise. The yearly-increase field shows how much a modest bump does over decades.
- Capture any employer match. It's an immediate return on your contributions.
- Be conservative with returns. Planning around 5–6% leaves room for weaker markets than the historical average.
- Work a little longer. Each extra year adds contributions and growth while shortening the period your savings must last.
Frequently asked questions
How much do I need to retire?
A common rule is to save enough that 4% of your portfolio covers the part of your yearly spending not paid by Social Security or a pension — that's about 25 times the shortfall. This calculator does the math for your numbers.
Why does it show today's dollars?
A million dollars in 30 years buys much less than a million today. Converting to today's dollars using your inflation assumption shows what your savings will actually be worth in purchasing power.
What return should I assume?
US stocks have historically returned roughly 10% a year before inflation, and balanced portfolios less, but returns vary widely from year to year. A cautious estimate such as 5–7% is common for planning.
Does this include Social Security?
Only if you enter it. Use the 'other income' field for the yearly amount you expect from Social Security or a pension, in today's dollars.
Are taxes included?
No. Withdrawals from traditional 401(k)s and IRAs are taxed as income, so your after-tax income will be lower. Roth withdrawals are generally tax-free.
This calculator is for general informational purposes only and does not constitute financial or investment advice. Actual returns will vary.