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Simple Calculators

Retirement Calculator

Project your nest egg, test it against your income goal, and see exactly how much more per month closes the gap

Your Timeline

90–95 is a common planning horizon

Savings & Assumptions

7% ≈ long-run stock-heavy portfolio

Lower — more conservative allocation

From savings — excluding Social Security

Estimate only: Uses constant returns and inflation — real markets vary year to year, and results are shown in future (nominal) dollars. Social Security, pensions, and taxes are not included. Not investment advice.

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Quick summary

Enter your ages, current savings, monthly contribution, return and inflation assumptions, and the monthly income you want from savings in today's dollars. The calculator projects your nest egg, inflates your income goal to retirement-date dollars, works out the nest egg needed to pay that income until your plan-to age, and shows the extra monthly saving that would close any gap. Results are projections based on constant returns, not guarantees.

Reviewed by Simple Calculators TeamLast reviewed

For planning only — not financial or tax advice. Results are estimates based on your inputs and the stated assumptions. Confirm important decisions with a qualified professional.

How to use this calculator

  1. Under Your Timeline, enter your Current Age, Retirement Age, and Plan To Age (how long your savings need to last).
  2. Enter your Current Retirement Savings ($) and the Monthly Contribution ($) you plan to keep making.
  3. Set Return Before Retirement (%) and Return In Retirement (%); the second is usually lower to reflect a more conservative mix.
  4. Enter your expected Inflation (%) so the calculator can convert your goal into future dollars.
  5. Enter the Desired Monthly Income (today's $) you want from savings, excluding Social Security or pensions.
  6. Read the Projected Nest Egg and the on-track or shortfall message, then compare Needed for Your Goal, Sustainable Income, and 4% Rule Income.

Retirement Formulas

Growth of Current Savings

FVsavings=S×(1+R)tFV_{\text{savings}} = S \times (1 + R)^{t}
S
Current retirement savings
R
Annual return before retirement (as a decimal), compounded yearly
t
Years until retirement

Worked example

$50,000 already saved, 30 years from retirement, 7% annual return

Given
S = $50,000
R = 0.07
t = 30
Calculation
FVsavings=50,000×1.0730FV_{\text{savings}} = 50{,}000 \times 1.07^{30}
Result
FV ≈ $380,612.75

Future Value of Monthly Contributions

FV=PMT×(1+i)n−1iFV = PMT \times \frac{(1+i)^n - 1}{i}
PMT
Monthly contribution, added at the end of each month
i
Monthly return (annual return ÷ 12)
n
Months until retirement

Worked example

$1,000/month for 30 years at 7% annual return

Given
PMT = $1,000
i = 0.0058333 (7% ÷ 12)
n = 360
Calculation
FV=1,000×(1.0058333)360−10.0058333FV = 1{,}000 \times \frac{(1.0058333)^{360} - 1}{0.0058333}
Result
FV ≈ $1,219,971

Required Nest Egg (Present Value of an Annuity)

Nest Egg=PMT×1−(1+i)−ni\text{Nest Egg} = PMT \times \frac{1 - (1+i)^{-n}}{i}
PMT
Monthly income needed in retirement, in retirement-date dollars
i
Monthly return in retirement (annual ÷ 12)
n
Months of retirement (plan-to age − retirement age) × 12

Worked example

$8,000/month for 25 years at a 5% return in retirement

Given
PMT = $8,000
i = 0.0041667 (5% ÷ 12)
n = 300
Calculation
Nest Egg=8,000×1−(1.0041667)−3000.0041667\text{Nest Egg} = 8{,}000 \times \frac{1 - (1.0041667)^{-300}}{0.0041667}
Result
Nest Egg ≈ $1,368,480

Frequently asked questions

How much do I need to retire?

The amount you need depends on how much income your savings must provide and for how long. A common shortcut is 25 times your desired annual spending from savings, which is the 4% rule: $60,000 a year implies about $1.5 million. This calculator is more specific: it values the income you need as an annuity over your own retirement window, using your return and inflation assumptions.

How does this retirement calculator work?

This calculator grows your current savings at your pre-retirement return compounded yearly and grows each monthly contribution with monthly compounding. It then inflates your desired monthly income to retirement-date dollars and calculates the lump sum that would pay that income until your plan-to age at your in-retirement return. The difference between the two is your surplus or shortfall.

What is the 4% rule?

The 4% rule is a guideline that says you can withdraw 4% of your portfolio in the first year of retirement and raise that amount with inflation each year. It comes from historical studies of US stock and bond returns over 30-year periods. It is a planning benchmark, not a guarantee, and this calculator shows it as 4% Rule Income alongside its own estimate.

What return should I assume?

There is no single right return, so test a range rather than relying on one number. The default here is 7% before retirement and 5% in retirement, reflecting a growth-oriented portfolio that becomes more conservative later. Try lower values as a stress test. Small changes compound into large differences over decades, so a cautious assumption reduces the risk of falling short.

Does this include Social Security?

No, this calculator does not include Social Security or pensions. The Desired Monthly Income you enter should be only the amount your savings must provide. Estimate your total monthly spending in retirement, subtract your expected Social Security benefit and any pension, and enter the remainder. You can check your projected benefit with a my Social Security account at ssa.gov.

Is it too late to start saving at 40 or 50?

No, it is not too late, but the monthly amount needed rises steeply the later you start. Using this calculator's monthly compounding at 7%, reaching $1 million by 65 takes about $820 a month starting at 35, about $1,920 a month starting at 45, and about $5,780 a month starting at 55. Catch-up contributions for workers 50 and older exist to help close that gap.

What is the difference between Sustainable Income and 4% Rule Income?

Sustainable Income is the monthly amount your projected nest egg could pay until your plan-to age if it earns your in-retirement return and is fully spent by the end. 4% Rule Income is simply 4% of the nest egg divided by 12. The annuity figure is usually higher because it plans to use up the principal, while the 4% rule aims to last through any 30-year period.

Key terms

Nest Egg
Total retirement savings at the moment you retire — the pool that funds your withdrawals.
4% Rule
Withdraw 4% of the portfolio in the first year, inflation-adjusted thereafter; historically survives 30-year retirements.
Real vs Nominal Returns
Nominal is the headline return; real subtracts inflation. This calculator grows money nominally and inflates your income target to match.
Sequence-of-Returns Risk
Poor market years early in retirement hurt far more than the same years later — a reason to plan with conservative withdrawal rates.

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.