Retirement Savings Calculator

Estimates only, not financial advice. Real returns vary from year to year and are not guaranteed. Contributions are added at the end of each month and returns are compounded monthly. Taxes and fees are not included.

How this retirement savings calculator works

Enter your age, the age you want to retire, what you have saved so far and how much you add each month. Then choose the yearly return you expect and the yearly inflation. The calculator shows what your savings could grow to by retirement, and what that money would be worth in today’s prices.

Why inflation matters

Prices rise over time, so a dollar in 35 years buys less than a dollar today. That is why the calculator shows two numbers: the balance you will actually see on your statement, and the same amount adjusted into today’s dollars, which is easier to compare with what things cost now.

What is the yearly income estimate?

A common rule of thumb, often called the 4% rule, suggests that you can withdraw about 4% of your savings in the first year of retirement and adjust for inflation afterwards. The calculator applies this rule to your balance in today’s dollars. It is a rough guide only, and your own needs and market conditions can change the result.

Example

You are 30, want to retire at 65, have 20,000 saved and add 600 a month. With a 7% yearly return, your savings could reach about 1,310,756. You would have put in 272,000 yourself, and about 1,038,756 comes from growth. With 2.5% inflation, that is worth about 552,315 in today’s dollars, or roughly 22,093 a year by the 4% rule.

Now imagine you wait 10 years to start, at age 40. With the same numbers and 25 years to go, the balance is about 600,551, less than half. Starting early matters a lot.

Ways to grow your retirement savings

• Start as early as you can. Each extra year gives your money more time to grow on itself.
• Raise contributions when your income rises. Try increasing the monthly amount above to see the effect.
• Use employer matching. If your employer adds money to your retirement plan, that is a return you cannot get elsewhere.
• Keep fees low. High investment fees quietly reduce your return every year.

Frequently asked questions

What return should I enter?

Use a cautious estimate. The 7% in the example is only an illustration, not a promise. Try several values, such as 4%, 6% and 8%, to see a range.

How much should I save for retirement?

It depends on your income, lifestyle and other sources such as pensions or Social Security. Use the calculator to test different monthly amounts and see what works for you.

Does this include taxes?

No. Different retirement accounts are taxed in different ways, so your real after-tax income may be lower or higher.