Use this free retirement calculator to estimate how much you will have saved by retirement age. Enter your current age, savings balance, monthly contributions, and expected return to see your projected retirement nest egg and whether you are on track to meet your goals.
Retirement Calculator
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Projected Balance
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Investment Growth
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Estimated Retirement Income (4% Rule)
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Year-by-Year Growth
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How to use this Retirement Calculator
1. Enter your current age and your target retirement age.
2. Enter your current retirement savings balance — include all accounts such as 401k, IRA, and personal investment accounts combined.
3. Enter your total monthly contribution — include your personal contributions plus any employer match you receive.
4. Enter your expected annual return rate — a conservative long-term estimate for a diversified portfolio is 6% to 7%.
5. Enter your retirement savings goal — a common rule of thumb is 25 times your expected annual expenses in retirement.
6. Click Calculate Retirement Savings to see your projected balance, year-by-year growth, progress toward your goal, and estimated monthly retirement income based on the 4% withdrawal rule.
Frequently asked questions
Q: How much do I need to retire?
A: A common guideline is to save 25 times your expected annual expenses in retirement, which supports a 4% annual withdrawal rate. For example, if you expect to spend $60,000 per year in retirement, you would need $1,500,000 saved. Your actual number depends on your lifestyle, health costs, Social Security income, and how long you expect to live.
Q: What is the 4% rule?
A: The 4% rule is a retirement planning guideline that suggests withdrawing 4% of your retirement savings in the first year of retirement, then adjusting for inflation each year after. Research suggests this withdrawal rate has historically allowed portfolios to last 30 years or more. This calculator uses the 4% rule to estimate your monthly retirement income.
Q: What return rate should I use?
A: For long-term retirement planning with a diversified stock and bond portfolio, a rate of 6% to 7% is commonly used as a conservative estimate. More aggressive all-stock portfolios have historically averaged closer to 10% before inflation, but it is wise to use a conservative number when planning for retirement.
Q: Should I include my employer 401k match?
A: Yes — always include your employer match in your monthly contribution total. An employer match is essentially free money and has a significant impact on your long-term balance. If your employer matches 50% of contributions up to 6% of your salary, make sure you are contributing at least 6% to capture the full match.
Q: What if I am behind on retirement savings?
A: If your projected balance falls short of your goal, you have several options: increase your monthly contribution, delay retirement by a few years, reduce your target annual spending in retirement, or plan to supplement savings with Social Security or part-time income. Even small increases in monthly contributions made consistently have a large impact over time due to compound growth.