Retirement Calculator
Plan for a comfortable retirement with our Retirement Calculator. Enter your current age, retirement age, current savings, monthly contributions, and expected investment returns to see your projected retirement balance and monthly income. Perfect for retirement planning, 401(k) projections, IRA planning, or evaluating if you're on track for your retirement goals. The calculator uses the 4% withdrawal rule to estimate sustainable monthly income during retirement. All calculations happen instantly in your browser with no data storage.
How it works: Enter your current age, retirement age, current savings, monthly contributions, and expected return to see your retirement nest egg. The calculator uses the 4% rule to estimate sustainable monthly income.
What Is a Retirement Calculator?
A retirement calculator tells you whether your current savings rate is on track to fund your retirement lifestyle, and how much you need to save each month to get there. It projects your portfolio balance at retirement using your current savings, monthly contribution, expected return, and years to retire — then converts that balance into a sustainable monthly income using the 4% safe withdrawal rule. A $1.2M portfolio at retirement generates $4,000/month at 4% withdrawal indefinitely. This calculator is the single most important financial calculation most people never do.
How to Use This Retirement Calculator
Enter your current age, target retirement age, current retirement savings, monthly contribution, and expected annual return. The calculator shows your projected balance at retirement, estimated monthly income (at 4% withdrawal), and whether you\'re on track to replace your desired income. Adjust your monthly contribution to see exactly how much more you need to save to close any gap.
Worked Example: David, 35, Plans to Retire at 65
David has $50,000 saved and contributes $600/month. He expects 8% annual returns and wants to retire in 30 years.
Retirement balance at 65: ~$1,310,000
Total contributed: $266,000 | Investment growth: $994,000
Monthly income at 4% withdrawal: ~$4,367/month
If David contributes $400/month instead: only $933,000 balance — $3,110/month income
Retirement Savings Milestones by Age (Fidelity Guidelines)
| Age | Savings Target (x Salary) | At $70k Salary | At $100k Salary |
|---|---|---|---|
| 30 | 0.5–1x | $35k–$70k | $50k–$100k |
| 35 | 1–1.5x | $70k–$105k | $100k–$150k |
| 40 | 2x | $140k | $200k |
| 45 | 3x | $210k | $300k |
| 50 | 4–5x | $280k–$350k | $400k–$500k |
| 55 | 6–7x | $420k–$490k | $600k–$700k |
| 60–65 | 8–10x | $560k–$700k | $800k–$1M |
The 4% Rule: Safe Withdrawal Rate
The 4% rule (Bengen, 1994) says a retiree can withdraw 4% of their portfolio in year one, then adjust for inflation each year, with a 96%+ probability of the portfolio lasting 30 years based on historical stock/bond returns. A $1M portfolio → $40,000/year ($3,333/month). A $2M portfolio → $80,000/year. Early retirees (retiring at 50–55) should use 3–3.5% to account for a 40+ year horizon. Later retirees (70+) can use 4.5–5%.
Tips to Retire Earlier or More Comfortably
Maximize employer-matched 401k contributions first (free 50–100% return on matched dollars). Then max a Roth IRA ($7,000/year) for tax-free retirement income. Increase your savings rate by 1% per year with each raise — a 28-year-old earning $70,000 who increases savings by 1%/year for 10 years will retire with over $200,000 more than someone who never adjusts. Delay Social Security to 70 if possible — delaying from 62 to 70 increases monthly benefits by 76%, which is one of the highest guaranteed returns available.
Frequently Asked Questions About Retirement Calculators
How much do I need to retire?
The standard rule: multiply your desired annual retirement income by 25 (the inverse of 4%). To replace $60,000/year in retirement, you need $1,500,000. Subtract Social Security income first: if SS pays $2,000/month ($24,000/year), you need to fund the remaining $36,000, requiring $900,000.
What return rate should I assume?
6–8% is the most common assumption for a diversified portfolio. 6% is conservative (bond-heavy), 8% is moderate (60/40 stock/bond), 10% is aggressive (all-stock, historically accurate for S&P 500 but with high volatility). Subtract 2.5% for inflation to get real purchasing power returns.
How does Social Security affect retirement planning?
Social Security replaces 40–50% of pre-retirement income for average earners. Claiming at 62 reduces benefits by ~30%; delaying to 70 increases benefits by 24% above full retirement age. Check your projected benefit at ssa.gov and subtract it from your income need before calculating your savings target.
Can I retire early (FIRE)?
Yes. Retiring at 50 requires a 3–3.5% withdrawal rate and 40+ years of portfolio longevity. The higher savings rate needed is substantial: to retire at 50 with a $60,000 lifestyle, you need ~$1.7M–$2M. Many early retirees use a flexible withdrawal strategy and part-time income to reduce sequence-of-returns risk.
What is sequence of returns risk?
Experiencing large market losses early in retirement depletes a portfolio permanently even if average returns are good over time. A 30% loss in year 1 of retirement is far more damaging than the same loss in year 20 of accumulation. This is why allocation should shift to more conservative (bonds, cash) as you approach and enter retirement.
Should I account for healthcare costs in retirement?
Yes. The average 65-year-old couple needs an estimated $315,000 in out-of-pocket healthcare expenses in retirement (Fidelity, 2023). Medicare starts at 65 but doesn't cover everything. Early retirees before 65 must pay for private insurance, which can cost $800–$2,000/month. Build a healthcare cushion into your retirement number.
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