See if you’re on track to retire. This free retirement calculator projects how much your savings will grow by retirement based on your age, contributions and expected return — then estimates the monthly income that nest egg could provide using the 4% rule.
Estimates only, shown in today’s dollars before inflation and tax. Actual returns vary and are not guaranteed.
How the Retirement Calculator Works
This retirement calculator projects how your current savings and ongoing monthly contributions could grow by the time you retire, based on an expected annual rate of return, then estimates a sustainable monthly income from that balance using the 4% withdrawal rule.
Formula: Nest egg = P × (1+i)^N + C × [(1+i)^N − 1] / i, where i = Expected annual return ÷ 12 and N = (Retirement age − Current age) × 12. Estimated monthly income = Nest egg × 0.04 ÷ 12
- P — current savings balance
- C — monthly contribution
- i — expected monthly rate of return (annual return ÷ 12)
- N — number of months between now and retirement
- Retirement age − Current age — the number of years your money has to grow
Example Scenarios
| Current Age | Retirement Age | Current Savings | Monthly Contribution | Expected Return | Projected Nest Egg | Est. Monthly Income (4% Rule) |
|---|---|---|---|---|---|---|
| 30 | 65 | $25,000 | $500 | 7% | $1,188,200 | $3,961 |
| 40 | 65 | $50,000 | $750 | 7% | $893,800 | $2,979 |
| 25 | 65 | $10,000 | $400 | 8% | $1,634,300 | $5,448 |
| 50 | 65 | $200,000 | $1,000 | 6% | $781,600 | $2,605 |
| 22 | 67 | $5,000 | $300 | 7% | $1,253,400 | $4,178 |
Stress-Testing Your Plan with the Retirement Calculator
A retirement calculator is most useful when you run it several times, not once. Small changes in assumptions move the answer a long way over thirty or forty years.
- Lower the expected return by one or two points and see whether the plan still works.
- Think in today’s money: use a return after inflation so the nest egg target stays comparable with your current spending.
- Remember other income such as a state or workplace pension; it reduces how much your savings must cover.
The 4% rule used by the retirement calculator comes from US research on historical stock and bond returns over 30-year retirements. Retiring early, holding mostly cash or living outside the US can make it less reliable, so treat the target from the retirement calculator as a starting estimate. The Trinity study article on Wikipedia explains where the rule came from.
Revisit the retirement calculator after a pay rise, a job change or a market fall. Tax rules and pension ages differ by country, so before deciding how to draw down savings, a regulated financial adviser can check what the retirement calculator cannot.
Retirement Calculator FAQ
What is the 4% rule this calculator uses for retirement income?
The 4% rule is a common guideline suggesting you can withdraw about 4% of your savings in the first year of retirement, adjusting for inflation after that, with a reasonable chance the money lasts around 30 years. It’s a starting point for planning, not a guarantee — many advisors suggest adjusting it based on market conditions and your own timeline.Are these projections adjusted for inflation?
No — the projected nest egg and monthly income shown are in nominal (today’s) dollars and don’t subtract expected inflation. Over decades, inflation meaningfully erodes purchasing power, so the real spending power of your projected savings will be lower than the raw number shown.What return rate should I use for my expected annual return?
This depends on your investment mix — a portfolio weighted toward stocks has historically returned more over long periods than one weighted toward bonds or cash, but also carries more short-term volatility. Try running the calculator at a few different return assumptions to see how sensitive your outcome is.How much does starting 10 years earlier actually matter?
Because returns compound, money invested earlier has more time to grow, so starting a decade sooner with the same contribution can lead to a meaningfully larger balance at retirement than starting later — even if you contribute more per month to catch up. Try changing your current age in the calculator to see the difference directly.Does this calculator account for employer 401(k) matching?
Not automatically — enter the monthly contribution field as the combined total you and your employer put in each month if you want the match reflected. If you only enter your own contribution, the projection will understate your actual savings growth.What if I don’t know my current savings or contribution amount exactly?
Use your best estimate — this calculator is meant for planning and comparison, not a precise forecast. Try a few realistic scenarios, such as a conservative and an optimistic contribution or return, to see a range of outcomes rather than relying on a single number.Related Calculators
If your retirement savings are split across accounts, the 401(k) calculator and Roth IRA calculator can model each account’s growth separately. For a broader look at how any invested amount compounds over time outside a retirement framing, try the investment calculator.