Calculators
Retirement Calculator
Calculate how much you need to save for retirement. See if you're on track to retire comfortably with projections based on your current savings, contributions, expected returns, Social Security, and inflation.
Use Retirement Calculator to get instant results without uploads or sign-ups. Everything runs securely in your browser for fast, reliable output.
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About this tool
Retirement planning is one of the most important financial goals, yet most Americans are underprepared. Our Retirement Calculator helps you determine if you're saving enough to maintain your desired lifestyle in retirement. The calculator uses the compound interest formula to project your savings growth and compares it against your expected needs based on the "replacement ratio" - typically you need 70-80% of your pre-retirement income to maintain your standard of living.
The Rule of 25 suggests you need 25 times your annual expenses saved to retire safely (supporting a 4% safe withdrawal rate). For example, if you need $50,000 per year in retirement, you should aim for $1.25 million saved. Our calculator uses this principle while factoring in Social Security, which typically replaces 40% of pre-retirement income for average earners. The calculator also considers inflation, usually 2-3% annually, which means your money's purchasing power halves every 25 years.
Starting early makes an enormous difference due to compound interest. Someone who starts saving $500/month at age 25 will have approximately $1.36 million by age 65 (at 8% returns). Starting at age 35 with the same contribution yields only $611,000 - less than half. This demonstrates the power of time in investing. Even small contributions made early outperform large contributions made late. The calculator helps visualize this impact and motivates action.
The calculator assumes your investments grow at a consistent rate, though real returns fluctuate yearly. Historical stock market returns average 10% annually, but many planners use 7-8% to be conservative. Bond-heavy portfolios might return 4-6%. The calculator doesn't account for market volatility, sequence of returns risk, or individual circumstances like healthcare costs, which can be significant. Use these results as a starting point and consider consulting a financial advisor for personalized planning. All calculations are done privately in your browser.
Usage examples
Young Professional Starting Early
Age 25, retire at 65, $15,000 saved, $60K income, saving $500/month, 8% returns
At retirement: $1,497,000 saved. Annual need (80% of $60K): $48,000. Using 4% rule: can withdraw $59,880/year. Result: ON TRACK! Actually exceeds needs. Can retire comfortably with current plan.
Mid-Career Catch-Up Needed
Age 40, retire at 67, $80,000 saved, $100K income, saving $800/month, 7% returns
At retirement: $825,000 saved. Annual need (75% of $100K): $75,000. Using 4% rule: can withdraw $33,000/year. Result: SHORTFALL of $42,000/year. Need to increase savings to $1,600/month or work until age 70 to meet goals.
Late Starter Needs Aggressive Savings
Age 50, retire at 65, $120,000 saved, $85K income, saving $1,500/month, 7% returns
At retirement: $568,000 saved. Annual need (70% of $85K): $59,500. Using 4% rule: can withdraw $22,720/year. Result: SIGNIFICANT SHORTFALL. Must increase savings to $2,800/month or delay retirement to age 70.
Well-Prepared Early Retiree
Age 35, retire at 55, $200,000 saved, $120K income, saving $2,500/month, 8% returns
At retirement: $1,895,000 saved. Annual need (70% of $120K): $84,000. Using 4% rule: can withdraw $75,800/year. Close! With Social Security at 62, should hit target. Aggressive plan but achievable.
Conservative Retirement with Pension
Age 45, retire at 65, $300,000 saved, $90K income, saving $1,200/month, 6% returns, has pension
At retirement: $1,119,000 saved. Annual need (70% of $90K): $63,000. Using 4% rule: can withdraw $44,760. Add pension $25,000/year = $69,760 total. Result: EXCEEDS needs. Well positioned for comfortable retirement.
How to use
- Optionally select a Quick Start preset (Early Career, Mid Career, Late Career, etc.)
- Enter your current age and desired retirement age
- Input your current retirement savings balance
- Enter your current annual income
- Specify how much you contribute monthly to retirement
- Set expected annual return rate (historically 7-10% for stocks)
- Enter what percentage of current income you'll need in retirement (typically 70-80%)
- Optionally add inflation rate to see real purchasing power
- Optionally add estimated Social Security monthly benefit
- Select a comparison scenario to see alternative paths to retirement
- Click "Calculate" to see if you're on track
- Review projected savings, readiness score, and year-by-year projections
- Adjust contributions, retirement age, or other factors to meet your goals
Benefits
- See if you're on track to retire when you want
- Calculate exactly how much you need to save
- Understand the power of compound interest over time
- Visualize impact of increasing contributions
- Factor in Social Security estimates
- Uses the safe 4% withdrawal rule for sustainability
- Compare different retirement ages and scenarios
- Adjust for different investment return expectations
- No registration or data collection
- Instant calculations with clear recommendations
- Works on all devices with complete privacy
- Free forever with detailed breakdowns
FAQs
How much do I need to retire?
A common rule is the "Rule of 25": multiply your annual expenses by 25. If you need $50,000/year, you should save $1.25 million. This supports the 4% withdrawal rule - withdrawing 4% annually from your portfolio ($50,000 from $1.25M) is historically sustainable for 30+ years. However, needs vary: you may need more if retiring early (40+ years of withdrawals), have high healthcare costs, or want luxury lifestyle. You may need less if you have a pension, will downsize, or plan to work part-time in retirement.
What is the 4% rule?
The 4% rule, based on the Trinity Study, states you can withdraw 4% of your retirement portfolio in the first year, then adjust for inflation each year, with a 95% probability the money will last 30 years. For example, with $1 million saved, withdraw $40,000 the first year. If inflation is 3%, withdraw $41,200 the second year. This assumes a 50/50 stock/bond portfolio. The rule has limitations: it may be too aggressive if retiring early or during market downturns. Many experts now recommend 3-3.5% for longer retirements (40+ years).
When should I start saving for retirement?
Start NOW, regardless of age. The earlier you start, the less you need to save monthly due to compound growth. Example: to have $1 million at 65 with 8% returns - start at 25: save $286/month. Start at 35: $670/month. Start at 45: $1,698/month. Start at 55: $5,466/month. Waiting even 10 years more than doubles the required monthly contribution. If you haven't started, don't despair - starting today is still better than waiting. Every dollar saved today is a dollar you don't have to earn later.
How much should I contribute to retirement?
Financial experts recommend saving 15-20% of gross income for retirement, including employer matches. At minimum: (1) Contribute enough to get full employer 401(k) match - that's free money. (2) Max out Roth IRA if eligible ($6,500/year in 2023, $7,500 if 50+). (3) Return to 401(k) to reach 15% total. If starting late (40+), increase to 20-25%. For 2023, 401(k) limit is $22,500 ($30,000 if 50+). If you can't hit 15%, start with whatever you can - even 5% is better than nothing - and increase 1% each year.
What investment return should I expect?
Historical S&P 500 returns average about 10% annually before inflation (7% after inflation). However, past performance doesn't guarantee future results. Conservative planning uses 6-7% for diversified portfolios. Your allocation matters: aggressive (90% stocks): expect 7-9%, moderate (60/40 stocks/bonds): expect 6-7%, conservative (30% stocks): expect 4-5%. Returns aren't consistent yearly - you might see +20% one year and -10% the next. Don't use overly optimistic rates (10%+) for planning - disappointing results could derail retirement. Our calculator lets you test different scenarios.
What about Social Security?
Social Security typically replaces about 40% of pre-retirement income for average earners (more for lower earners, less for higher). You can start benefits at 62 (reduced), full retirement age 67 (full amount), or delay to 70 (increased 8% per year). Example: if your full benefit is $2,000/month at 67, taking it at 62 gives $1,400/month, waiting until 70 gives $2,480/month. Social Security is adjusted for inflation but may not fully cover your needs. Don't rely solely on it - the average benefit is only about $1,800/month. Supplement with personal savings for comfortable retirement.
Can I retire early (before 59½)?
Yes, but it requires more planning. Challenges: (1) No penalty-free 401(k)/IRA access before 59½ (though Rule 72(t) SEPP allows early withdrawals). (2) Can't claim Social Security until 62. (3) Medicare doesn't start until 65. (4) Need savings to last 40+ years, not 30. Solutions: save in taxable brokerage accounts you can access anytime, use Roth IRA contributions (not earnings) penalty-free, consider Roth conversion ladder, save aggressively (30-50% of income). Early retirement typically requires 30-33x annual expenses (3-3.5% withdrawal rate) instead of 25x.
What if I'm behind on retirement savings?
Don't panic - you have options: (1) Increase contributions immediately, even by 1-2% - something is better than nothing. (2) Take advantage of catch-up contributions at 50+ ($7,500 extra in 401(k), $1,000 extra in IRA). (3) Reduce expenses in retirement - downsize home, relocate to lower-cost area. (4) Plan to work part-time in early retirement. (5) Delay Social Security to 70 for 24% larger benefit. (6) Delay retirement by even 2-3 years - huge impact since you save longer and withdraw for fewer years. (7) Eliminate debt before retirement. Most importantly, start now - it's never too late to improve your situation.
What is early retirement and the FIRE movement?
FIRE (Financial Independence, Retire Early) is a movement focused on extreme saving and investing to retire decades earlier than traditional age 65. FIRE followers typically save 50-70% of income and aim to accumulate 25-33x their annual expenses. Variations include Lean FIRE (minimal expenses), Fat FIRE (higher lifestyle), Barista FIRE (part-time work), and Coast FIRE (stop contributing, let investments grow). Keys to FIRE: high income, low expenses, aggressive investing (often 7-10% returns), and disciplined budgeting. Many FIRE retirees live on $30-50k/year and achieve financial independence in their 30s or 40s.
How does inflation impact retirement planning?
Inflation erodes purchasing power over time, meaning your money buys less in the future. At 3% annual inflation, $100 today will only have the purchasing power of $74 in 10 years, $55 in 20 years, and $41 in 30 years. This is critical for retirement: if you retire at 65 and live to 95, your money needs to last 30 years while prices double. Solutions: (1) Keep a portion in stocks during retirement for growth. (2) Plan for higher initial savings. (3) Use inflation-adjusted withdrawal rates. (4) Consider inflation-protected income sources like TIPS bonds or inflation-indexed annuities. Our calculator shows both nominal and inflation-adjusted values to help you plan realistically.
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