Retirement Calculator
Basic Details
Use today's dollars for income, savings, and spending.
Savings Rate
Equivalent to $900 per month right now.
Retirement Lifestyle
A common starting point is 70% to 80% of pre-retirement income.
Include Social Security, pensions, annuities, rental income, or other predictable income.
How This Retirement Calculator Works
The Projection vs. the Target
The calculator runs two estimates side by side. First, it projects what your current savings and monthly contributions could grow to by your retirement age, compounding month by month at your pre-retirement return. Second, it builds a target nest egg: the amount you'd need on day one of retirement to cover your planned spending after subtracting Social Security, pensions, and any other income you entered.
The gap between those two numbers is the heart of your plan. Everything else on the results panel is there to help you close it.
Where the Target Comes From
Your target isn't a generic rule of thumb. It starts with your retirement spending, adjusts it for inflation between now and retirement, subtracts other income, then works out how large a portfolio could fund those withdrawals through your life expectancy while the remaining balance keeps earning your post-retirement return. The planning cushion adds a margin on top for the things no spreadsheet can predict.
As a gut check, the classic 25x rule (25 times your annual portfolio withdrawals) usually lands in the same neighborhood.
Reading Your Results
A surplus means your current pace covers the target with room to spare. A gap means the math wants more, and the suggested monthly savings figure shows the contribution that would close it by your retirement age. Don't treat that number as a verdict - a small change to your retirement age or spending assumptions often shrinks a scary gap dramatically.
The Run-Out Age
The projection also simulates retirement itself: withdrawals grow with inflation while the remaining balance keeps earning. If the money would run dry before your life expectancy, you'll see the age it happens. Ideally that line reads "Not projected." If it doesn't, that's your cue to adjust an input - not evidence that you're doomed.
Making Your Plan Stronger
The Levers That Matter Most
Three inputs do most of the work: how much you save, when you retire, and what you'll spend. Working two or three extra years is remarkably powerful - it adds contributions, adds growth, and shortens the retirement you need to fund, all at once. On the spending side, trimming $500 a month from your retirement budget can lower your target by well over $100,000.
Investment returns matter too, of course. They're just the lever you control least, so build your plan around the ones you actually can.
Rules of Thumb Worth Knowing
- • Save 10-15% of gross income for retirement, including any employer match
- • The 4% rule: withdrawing about 4% of your portfolio in year one is a reasonable starting pace
- • Plan for 70-80% of pre-retirement income, adjusted for your own housing and health costs
- • Never leave employer matching dollars on the table - it's an instant return on contributions
- • Revisit the plan yearly; assumptions drift faster than you'd think
Mistakes to Avoid
Overestimating returns is the classic one. A plan built on 10% annual growth looks wonderful right up until markets deliver 6%. Other common traps: ignoring inflation (a dollar three decades from now buys a lot less), forgetting health care costs, and assuming you'll work to 67 when plenty of people end up retiring earlier than they planned - sometimes not by choice.
What This Tool Doesn't Model
Taxes, account types (401(k) vs. Roth vs. taxable), required minimum distributions, and year-to-year market swings are all simplified away. That's fine for setting direction. Just treat the output as a planning estimate rather than a guarantee, and talk to a professional before making big, irreversible decisions.
Frequently Asked Questions
How much money do I need to retire?
A useful estimate is 25 times your annual portfolio withdrawals, but your actual number depends on retirement age, spending, Social Security, pensions, investment returns, inflation, taxes, and how long retirement lasts. This calculator estimates a target nest egg from your projected retirement spending and other income.
What percentage of income should I save for retirement?
Many households aim to save 10% to 15% of gross income for retirement, including employer matching. If you started later, want to retire early, or have a larger gap, you may need a higher savings rate. The suggested monthly savings result shows the pace needed for your inputs.
Should I use current dollars or future dollars?
Enter income, savings, contributions, and spending in today dollars. The calculator applies inflation and income growth assumptions behind the scenes so the retirement target reflects future spending power.
What is a reasonable retirement income replacement rate?
A common starting point is 70% to 80% of pre-retirement income, but the right number depends on your housing costs, health care, travel plans, taxes, debt, and whether you will still support dependents. People with paid-off homes or lower expenses may need less, while higher-spending retirements may need more.
How should I estimate Social Security or pension income?
Use the other monthly retirement income field for predictable income sources like Social Security, pensions, annuities, or rental income. If you are unsure, use a conservative estimate and revisit the plan when you have updated benefit projections.
What investment return should I use?
A long-term diversified stock and bond portfolio might use a moderate assumption such as 5% to 7% before retirement and a slightly lower return after retirement if the portfolio becomes more conservative. Lower assumptions create a more cautious plan.
Does the calculator include taxes?
The calculator focuses on savings, spending, growth, inflation, and outside income. It does not model federal or state taxes, account type rules, required minimum distributions, or health care subsidies, so use the results as planning estimates rather than tax advice.
How often should I update my retirement plan?
Review your plan at least once a year and after major life changes such as a raise, job change, home purchase, marriage, divorce, new child, large market move, or a shift in retirement goals.