Retirement Savings Calculator
Estimate how much you will have saved by retirement and what your monthly income could look like.
How to Use
- Enter your current age and the age at which you plan to retire.
- Enter your current retirement savings balance and how much you plan to contribute each month.
- Set your expected annual rate of return (historically, the stock market has averaged around 7% after inflation) and optionally adjust the expected inflation rate.
- Click "Calculate Retirement Savings" to view your projected savings, total contributions, interest earned, and estimated monthly retirement income based on the 4% withdrawal rule.
Frequently Asked Questions
What is the 4% rule?
The 4% rule is a widely used retirement planning guideline suggesting that retirees can withdraw 4% of their savings in the first year of retirement, then adjust that amount for inflation each subsequent year, and have a high probability of not running out of money over a 30-year retirement period. This calculator uses it to estimate your potential monthly retirement income.
What rate of return should I use?
The historical average annual return of the S&P 500 is roughly 10% before inflation and about 7% after inflation. A conservative estimate would be 5-6%, a moderate estimate 7-8%, and an aggressive estimate 9-10%. Your actual returns will depend on your asset allocation and market conditions.
What is the difference between nominal and inflation-adjusted values?
Nominal values represent the raw dollar amount without accounting for the erosion of purchasing power over time. Inflation-adjusted (real) values show what your future savings would be worth in terms of today's purchasing power. The inflation-adjusted figure gives you a more realistic picture of your retirement wealth.
Does this calculator account for taxes?
No, this calculator does not account for taxes on contributions, investment growth, or withdrawals. Tax treatment varies depending on account type (e.g., 401(k), Roth IRA, traditional IRA, taxable brokerage). Consult a financial advisor for personalized tax planning.