Retirement Calculator

How to use this calculator

Enter your current age and the age you hope to retire, what you have saved for retirement so far, how much you add each month, an assumed annual return, and the rate at which you expect to withdraw savings once retired. The calculator estimates your balance at retirement and splits it into your current savings, the contributions you add, and the investment growth on top.

Try more than one scenario. Retiring a few years later, saving a little more each month, or assuming a lower return all change the outcome, and comparing them is more useful than trusting a single projection.

How retirement saving builds

Retirement savings grow from three sources: the money you already have, the contributions you keep adding, and the compound growth earned on both. Time is the most powerful input, because contributions made early have the longest to compound. This is why starting sooner usually matters more than adding a little more later.

Tax-advantaged accounts such as a 401(k), a traditional IRA, or a Roth IRA are the common vehicles for this saving in the United States. Each has its own contribution limits and tax treatment. For how the account types differ, see our guide comparing a Traditional IRA and a Roth IRA.

How the numbers are calculated

Your current savings grow at the assumed annual return, compounded monthly. A contribution is added at the end of each month and then compounds for the remaining time until retirement. The projected balance is your current savings plus all contributions plus the growth earned on both. Investment growth is the projected balance minus everything you put in.

The income estimate applies your chosen withdrawal rate to the projected balance. A withdrawal rate of 4 percent, for example, means drawing 4 percent of the balance in the first year. This is a rough planning guideline, not a rule, and it does not include Social Security or any pension.

Assumptions

• The return rate is the same every year. Real returns do not behave this way.
• Contributions are made at the end of every month, without interruption, until retirement.
• No taxes or investment fees are deducted.
• The income estimate assumes the withdrawal rate is applied to the balance at retirement.
• Results are shown in nominal dollars and are not adjusted for inflation.
• Figures are rounded to whole dollars.

Limitations

• This is an educational estimate, not a prediction, guarantee, or individualized advice. All investing involves risk, including the possible loss of principal.
• Actual investment returns rise and fall from year to year, so a real balance can differ substantially from a constant-rate estimate.
• It does not include Social Security, pensions, employer matching, or changing contributions over a career.
• It does not model taxes, investment fees, or inflation, all of which affect what your money is really worth.
• The withdrawal-rate income figure is a simplified guideline, not a sustainable-spending guarantee.
• Past performance does not guarantee future results.

Frequently asked questions

What return rate should I use?

The rate is your assumption, not a promise. People often reference long-run historical averages for a diversified portfolio, but no rate is guaranteed and future returns may be higher or lower. Testing a range, including a few points below your main assumption, is more useful than a single optimistic figure.

What is a withdrawal rate?

It is the share of your savings you draw down each year in retirement. A commonly cited planning guideline is around 4 percent per year, but the right figure depends on your time horizon, investments, and spending flexibility. It is a starting point for planning, not a guarantee your money will last.

Does this include Social Security?

No. The income estimate reflects only withdrawals from the savings you enter. Social Security benefits, pensions, and other income would be in addition to this figure. You can estimate your benefits with the Social Security Administration’s own tools.

Does it account for inflation?

No. Results are in today’s nominal dollars, so a balance decades from now will not buy as much as the same number today. A projected balance far in the future represents less real spending power than it appears to.