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Retirement Savings Calculator

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How to Use the Retirement Calculator

The Retirement Savings Calculator projects how much your savings will grow by your target retirement age, based on your current savings, monthly contributions, expected annual return, and inflation rate. Planning for retirement requires understanding the combined effect of compound growth over decades — even modest monthly contributions started early can grow into significant wealth. This calculator makes that long-term trajectory visible so you can take action now, when time is still on your side.

The calculation uses the future value formula for a growing annuity: FV = P(1+r)^n + PMT × [(1+r)^n − 1] / r, where P is your current savings, r is the monthly return rate (annual rate divided by 12), n is the total months until retirement, and PMT is your monthly contribution. The inflation adjustment converts the projected nominal value into today's purchasing power, giving you a realistic sense of what your savings will actually buy in the future.

The estimated monthly retirement income assumes a 20-year drawdown period (240 months) after retirement. This is a conservative and widely used planning assumption, though actual retirement duration varies. Results are projections for planning purposes only and do not account for Social Security or pension income, taxes on withdrawals, changes in contribution levels, healthcare costs, or unexpected expenses. Working with a certified financial planner (CFP) for a comprehensive retirement plan is strongly recommended for decisions involving large sums.

How to Use the Retirement Calculator

  1. 1

    Enter your Current Age and Target Retirement Age — the gap between these determines how many years your savings have to compound and grow.

  2. 2

    Enter your Current Savings — the total amount you have already set aside for retirement across all accounts.

  3. 3

    Set your Monthly Contribution — the amount you plan to add to your retirement savings each month going forward.

  4. 4

    Set the Expected Annual Return (%) — 6–7% is a common estimate for a diversified stock portfolio; use a lower rate for conservative allocations.

  5. 5

    Set the Inflation Rate (%) — 2–3% is the historical average; this converts future nominal values into today's purchasing power.

  6. 6

    Review your projected total, inflation-adjusted balance, and estimated monthly retirement income in the results panel.

Frequently Asked Questions

How much should I save for retirement?
A common rule of thumb is to save 10–15% of your gross income for retirement starting as early as possible. Many financial planners recommend having 10–12 times your final annual salary saved by retirement age. The right amount depends on your target lifestyle, retirement age, expected Social Security income, and health costs.
What annual return rate should I use?
For a diversified stock portfolio such as index funds, a commonly used long-term real return assumption is 6–7% annually after inflation, based on historical S&P 500 averages. For a balanced stock and bond portfolio, 4–5% is more conservative. Use a lower rate if you are close to retirement and have a conservative asset allocation.
What inflation rate should I enter?
The U.S. Federal Reserve targets 2% annual inflation as a long-term average. For planning purposes, 2–3% is a reasonable assumption. Using 2.5–3% gives a slightly pessimistic view of future purchasing power, which is appropriate for conservative long-horizon planning.
How is the monthly retirement income calculated?
The estimated monthly income is calculated by dividing your projected retirement savings by 240 months (a 20-year drawdown period). This is a simplified model. Actual retirement income planning should also incorporate Social Security benefits, tax rates on withdrawals, Required Minimum Distributions, and other income sources.
What is the 4% withdrawal rule?
The 4% rule states that you can withdraw 4% of your retirement portfolio in the first year and adjust for inflation each subsequent year, with a high probability of the money lasting 30 years. To find your target savings: multiply your desired annual retirement income by 25. For example, $60,000 per year requires $1.5 million saved.
Should I include Social Security benefits in this calculation?
This calculator focuses on personal savings growth. Social Security income should be estimated separately using the Social Security Administration's online tools. Your actual benefit depends on your earnings history and the age at which you choose to claim — earlier claiming reduces your monthly benefit.
Why does starting early make such a large difference?
Starting early allows compound interest to work over a longer period. Someone who saves $300 per month from age 25 to 65 at 7% ends up with roughly $800,000. Someone who starts at 35 with the same monthly contribution ends up with about $380,000 — less than half — despite only 10 fewer years of saving. Early contributions have more time to compound.
Can self-employed individuals use this calculator?
Yes. Self-employed individuals can enter their projected monthly contribution to a SEP-IRA, Solo 401(k), or other retirement vehicle. The underlying growth math is the same regardless of account type. The contribution limits and tax treatment differ by account type — a tax advisor can clarify the best option for your situation.