Retirement Calculator — Plan Your Financial Future
Estimate how much you need to save for retirement and what your monthly retirement income could be using the 4% rule. See also Savings Calculator and Compound Interest Calculator.
How the Retirement Calculator Works
This retirement calculator projects your savings growth from your current age to your target retirement age. It compounds your current savings and monthly contributions at the expected annual return rate, then applies the widely-used 4% rule to estimate sustainable monthly retirement income. The inflation adjustment shows what your retirement savings would be worth in today's purchasing power, giving you a realistic picture of your future financial position.
Retirement Savings Formula
FV = PV × (1 + r/12)^(12×t) + PMT × [((1 + r/12)^(12×t) − 1) / (r/12)]
Monthly Income = FV × 0.04 / 12 (4% rule)
Inflation-Adjusted = FV / (1 + i)^t
Where:
PV = Current savings, PMT = Monthly contribution
r = Annual return rate, i = Inflation rate, t = Years to retirement
Example Calculation
Current Age: 30, Retirement Age: 65 (35 years)
Current Savings: $50,000
Monthly Contribution: $500
Annual Return: 7%, Inflation: 3%
Retirement Savings ≈ $1,143,000
Monthly Income (4% rule) ≈ $3,810
Inflation-Adjusted ≈ $406,000 (today's dollars)
Retirement Savings Milestones
| Start Age | Monthly | At Age 65 (7%) | Monthly Income |
|---|---|---|---|
| 25 | $300 | $1,021,503 | $3,405 |
| 30 | $500 | $1,143,459 | $3,812 |
| 35 | $500 | $790,781 | $2,636 |
| 40 | $750 | $759,688 | $2,532 |
| 45 | $1,000 | $632,408 | $2,108 |
| 50 | $1,500 | $543,890 | $1,813 |
*Assumes $0 starting savings, 7% annual return, compounded monthly
Frequently Asked Questions
What is the 4% rule?
The 4% rule is a retirement planning guideline suggesting you can withdraw 4% of your retirement savings annually (adjusted for inflation) without running out of money over a 30-year retirement. It was derived from the Trinity Study analyzing historical market returns.
Is 7% a realistic annual return?
The S&P 500 has historically returned about 10% annually before inflation, or roughly 7% after inflation. A diversified portfolio of stocks and bonds might return 6-8%. More conservative estimates use 5-6%. The right number depends on your investment mix and risk tolerance.
How much do I need to retire?
A common rule of thumb is to save 25 times your desired annual retirement spending (the inverse of the 4% rule). If you need $60,000/year in retirement, aim for $1.5 million. This calculator helps you see if you're on track to reach your target.
Why does inflation matter for retirement planning?
Inflation erodes purchasing power over time. $1 million in 35 years will buy significantly less than $1 million today. At 3% inflation, $1 million in 35 years is worth about $356,000 in today's dollars. Always consider inflation-adjusted values when planning.