Retirement Calculator
Calculate retirement savings needs, 401k contributions, and pension planning.
Personal Information
Current Savings
Assumptions
Projected Retirement Savings
At age 65
Monthly Income Available
From savings + Social Security
Monthly Income Needed
Inflation-adjusted
Monthly Shortfall
Additional income needed
Total Contributions
Your contributions
Employer Match Total
Free money from employer
Investment Growth
Compound interest earned
Withdrawal Rate
Annual withdrawal needed
What Builds Your Nest Egg
How it works
A retirement calculator works in two stages. First it grows your current savings plus ongoing contributions to a “nest egg” at your retirement date using compound growth. Then it checks whether that nest egg can fund your retirement spending — commonly tested with the 4% rule, which estimates a sustainable first-year withdrawal.
Nest egg & the 4% rule
FV = PV(1 + r)ⁿ + PMT · [(1 + r)ⁿ − 1] / r Nest egg needed ≈ annual spending ÷ 0.04
- FV
- future value (your nest egg)
- PV
- amount already saved
- PMT
- contribution each period
- r
- expected return per period
- n
- number of periods until retirement
Worked example
- You expect to spend $40,000/year in retirement
- Using the 4% rule as a sustainable withdrawal rate
- Nest egg needed = 40,000 ÷ 0.04
Target ≈ $1,000,000 — then work backwards to the monthly savings that compounds to it by your retirement date.
Good to know
- Starting early is the biggest lever: at 7%, a dollar saved at 25 is worth ~4× a dollar saved at 45, purely from extra compounding years.
- Capture every bit of an employer 401(k) match first — it's an instant 50–100% return before any market growth.
- The 4% rule is a starting guideline based on a 30-year horizon; longer retirements or lower expected returns argue for a more conservative 3–3.5%.
- Plan in real (inflation-adjusted) terms — $1M sounds like a lot today but buys far less in 30 years.
Related Calculators
Frequently Asked Questions
How much money do I need to retire?
A common target is 25x your expected annual spending, based on the 4% withdrawal rule. If you'll need $60,000 a year beyond Social Security, that points to roughly $1.5 million in savings.
How much should I save for retirement each year?
Aim for 10-15% of income including any employer match. In 2026 you can contribute up to $24,500 to a 401(k) and $7,500 to an IRA, with extra catch-up room if you're 50 or older.
What is the 4% rule?
Withdraw 4% of your portfolio in the first year of retirement, then adjust that dollar amount for inflation annually. Historical studies show this pacing has typically sustained a balanced portfolio for 30+ years.
How much difference does starting early make?
Enormous. Thanks to compounding, someone who starts saving at 25 can end up with roughly double the nest egg of someone starting at 35 with the same monthly contribution.
What percentage of my income will I need in retirement?
Most planners suggest 70-80% of pre-retirement income, since work expenses and saving stop but healthcare costs rise. Social Security replaces around 40% for an average earner, and your savings cover the rest.