Retirement Calculator

How to Use This Retirement Calculator

1. Enter your Current Age, Retirement Age, and Life Expectancy
2. Enter your Current Savings, Annual Income, and Monthly Contribution to retirement accounts
3. Enter your Expected Return (%) — typical range 5-10% for stock-heavy portfolios
4. Enter Inflation Rate (%) — historical average ~2.5-3%
5. Enter your estimated Social Security Monthly Benefit (check SSA statement)
6. Click Calculate My Retirement — see your retirement nest egg, monthly income, confidence score, and personalized recommendations

How Retirement Projections are Calculated (Formulas)

Future Savings = Current Savings × (1 + r)ⁿ + Monthly Contribution × [((1 + r)ⁿ — 1) ÷ r]
Monthly Retirement Income = (Future Savings × 4% ÷ 12) + Social Security
Readiness Score = Current Savings ÷ Target Savings (15% of income × years to retirement)

Real Example

Inputs:

• Current Age: 35 | Retirement Age: 65 | Life Expectancy: 85
• Current Savings: $50,000 | Annual Income: $75,000 | Monthly Contribution: $500
• Expected Return: 7% | Inflation Rate: 2.5% | Social Security: $2,000/month

Results:

• Retirement Nest Egg: ~$1,200,000
• Monthly Retirement Income: ~$6,000 ($4,000 from 4% withdrawal + $2,000 SS)
• Funds Last Until Age: ~92 years
• Confidence Score: ~75% | Readiness: On Track

Why Use This Retirement Calculator?

• ✅ Comprehensive Projections — Includes savings, contributions, returns, inflation, and Social Security
• ✅ 4% Safe Withdrawal Rule — Standard retirement planning guideline
• ✅ Confidence & Readiness Scores — See how prepared you are for retirement
• ✅ Personalized Recommendations — Actionable next steps based on your situation
• ✅ Funds Duration Estimate — Know how long your savings will last
• ✅ Free & Unlimited — No signup required
• ✅ Mobile Friendly — Responsive design for phones, tablets, and desktops

Frequently Asked Questions

How much do I need to retire?

Common rules of thumb:
– 4% Rule: Multiply desired annual retirement income by 25. Example: $50,000/year × 25 = $1.25M needed
– 80% Rule: You’ll need 80% of pre-retirement income annually
– 25× Expenses: Save 25 times your annual expenses
This calculator uses the 4% rule to estimate your sustainable retirement income.

What is the 4% rule?

The 4% rule (from the Trinity Study) suggests you can withdraw 4% of your retirement savings in year one, then adjust for inflation annually, and your savings should last 30 years. Example: $1M savings → $40,000/year ($3,333/month) sustainable withdrawal.

What return rate should I use?

Historical averages (S&P 500, 1926-2026):
– Nominal return: 7-10% annually
– Inflation-adjusted (real return): 4-7% annually
Conservative planning: 5-6% (real return)
Moderate planning: 7-8%
Aggressive planning: 9-10%

How does Social Security factor into retirement?

Social Security replaces about 40% of pre-retirement income for average earners. Check your SSA statement for personalized estimates. For higher earners, SS replaces a lower percentage; for lower earners, a higher percentage.

When should I start taking Social Security?

Full retirement age (FRA): 67 for those born 1960+
Early (age 62): 30% permanent reduction in benefits
Delayed (age 70): 24-32% permanent increase in benefits
Delaying increases monthly benefits significantly. This calculator assumes starting at retirement age.

How much should I save for retirement each month?

Guidelines by age (as % of income):
– Age 25-35: 10-15% of income
– Age 35-45: 15-20% of income
– Age 45-55: 20-25% of income
– Age 55-65: 25-30% of income
This calculator shows if you’re on track.

Related Retirement & Investment Calculators

• 401(k) Growth Calculator — Estimate retirement account growth
• Investment Return Estimator — Lump sum growth projection
• Compound Interest Calculator — With monthly contributions
• Inflation Impact Calculator — Adjust for purchasing power
• APR Calculator — Annual percentage rate for investments

Disclaimer: This retirement calculator provides estimates for informational purposes only. The 4% rule, return assumptions, and Social Security estimates are guidelines, not guarantees. Actual retirement outcomes vary based on market performance, tax laws, health care costs, and personal spending. Consult a financial advisor for personalized retirement planning.