Retirement Calculator
Estimate total retirement nest egg savings, monthly income, and retirement readiness.
A retirement calculator - or retirement date calculator - projects how your current savings and ongoing contributions will grow into a retirement nest egg by your target retirement age, using compound growth on a chosen rate of return. This retirement savings estimator also helps answer the reverse question - how much you need to have saved by retirement to support a given withdrawal rate.
Enter your current age, target retirement age, current savings, monthly contribution, and expected annual return to project your nest egg. The result shows both total contributions and total investment growth separately, since the growth portion typically becomes the larger share the longer the time horizon.
Worked Calculation Examples
| Scenario | Result | Calculation Step |
|---|---|---|
| 30yo saving $500/mo until age 65 at 7% return | $899,982 | Total contributions $210,000 yielding $689,982 in compound growth. |
The 4% Rule and Retirement Drawdown
A commonly cited retirement planning guideline, sometimes called the 4% rule, suggests that withdrawing 4% of your portfolio in your first year of retirement - and adjusting that dollar amount for inflation each year after - has historically had a strong chance of lasting through a 30-year retirement without depleting the portfolio. Under this rule of thumb, a $1,000,000 nest egg would support roughly $40,000 in first-year withdrawals. The 4% rule is a starting reference point, not a guarantee - actual safe withdrawal rates depend on market returns, inflation, and how long your retirement lasts.
Why Contributing Earlier Outweighs Contributing More
Because retirement savings compound over time, money contributed in your 20s and 30s has decades to grow before retirement, while the same dollar amount contributed in your 50s has far less time to compound. This is why financial planners consistently emphasize starting early over waiting to contribute larger amounts later - a smaller, earlier contribution stream can outgrow a larger, later one at the same rate of return, purely because of the extra compounding time.
Employer Match: An Immediate Return
If your employer offers a 401(k) match, contributing enough to capture the full match is effectively an immediate, guaranteed return on that portion of your contribution - a 50% or 100% match on a percentage of salary is a return most other investments can't match. This calculator's monthly contribution field can include both your own contribution and any employer match to project the combined growth.
How to Use the Retirement Calculator
- Open the Retirement Calculator and enter the values requested in the input fields.
- Check the units, percentages, dates, or time periods before reading the answer.
- Review the instant result and adjust any value to compare another scenario.
- Use the formula, example, and FAQs below to understand how the retirement calculator works.
Frequently Asked Questions
What is the 4% rule in retirement?
The 4% rule is a guideline suggesting you can withdraw 4% of your retirement portfolio in your first year, then adjust that amount for inflation each subsequent year, with a historically strong chance of the portfolio lasting 30 years.
How much do I need saved to retire?
A common approach is to divide your desired annual retirement income by 4% (the assumed safe withdrawal rate) - for example, $40,000/year in retirement income suggests a target of roughly $1,000,000 saved, though your actual number depends on expenses, other income sources, and retirement length.
Does this calculator include Social Security?
No, this calculator projects your personal savings and contributions only. Social Security benefits are a separate, additional income source that should be factored in when planning total retirement income.
What rate of return should I assume for retirement planning?
Many long-term planners use a conservative estimate in the 5-7% range for a diversified retirement portfolio, reflecting historical long-run averages while allowing for market variability and a mix of stocks and bonds.
Why does starting to save in my 20s matter so much?
Because of compound growth, money saved earlier has more time to grow - a smaller monthly contribution started in your 20s can outgrow a larger contribution started in your 40s, simply due to the additional decades of compounding.
Should I contribute enough to get my full employer 401(k) match?
In most cases, yes - an employer match is an immediate return on your contribution that isn't available anywhere else, so many financial planners recommend contributing at least enough to capture the full match before directing savings elsewhere.
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Last updated: September 29, 2026.