Retirement Savings Calculator

Enter your current age and planned retirement age so the tool knows how many years of growth and contributions to model. Add current retirement savings (401(k), IRA, and other long-term investments you treat as retirement money).

Set monthly contribution to what you actually invest on average — include employer match if you think of it as part of your savings rate. Choose an expected annual return (often 5–7% real after inflation for planning, or 7–10% nominal for a stocks-heavy portfolio — see below). Optionally set a retirement savings goal to compare projected balance vs target.

The future value of a lump sum grows roughly like FV = PV × (1 + r)^n, where r is the period return and n is the number of periods. Monthly contributions behave like a savings annuity: each payment has less time to compound than the one before, so the combined effect is a blend of those formulas.

In plain language: your existing balance snowballs, and every new contribution gets its own smaller snowball. Raising r or n (starting earlier) both push the curve up — which is why the calculator is sensitive to return assumptions and retirement age.

A common guideline is the "25x rule" — save 25 times your annual expenses. If you spend $50,000 per year, aim for $1.25 million. This is based on the 4% withdrawal rule, which suggests you can safely withdraw 4% of your portfolio each year without running out of money over a 30-year retirement. Your actual number depends on healthcare costs, inflation, Social Security benefits, and the lifestyle you envision.

Thanks to compound interest, someone who starts saving $300/month at age 25 will accumulate significantly more than someone who starts saving $600/month at age 35 — even though the late starter contributes more total dollars. At a 7% average return, the early saver ends up with roughly $680,000 by age 60, while the late saver accumulates about $453,000 despite investing more cash. Time in the market beats timing the market.

401(k) plans offer employer matching — free money you should always capture. Traditional IRAs and 401(k)s give you a tax deduction now, but withdrawals in retirement are taxed. Roth IRAs and Roth 401(k)s are funded with after-tax dollars, but qualified withdrawals are completely tax-free. If you expect to be in a higher tax bracket in retirement, Roth accounts are often advantageous. Many financial planners recommend a mix of both for tax diversification.

No one knows the future. Long-run U.S. equity returns are often quoted around 7–10% nominal before inflation, but your mix of stocks, bonds, and cash matters. Conservative planning uses lower numbers (5–6% nominal) or focuses on real returns after inflation. Run the calculator at both optimistic and pessimistic rates to see how wide the outcomes spread — that range is the honest answer.

Unless labeled otherwise, tools like this usually work in nominaldollars — today's dollars growing at your stated return. Inflation erodes purchasing power, so a $1M balance decades from now buys less than $1M today. For a quick mental adjustment, subtract 2–3% from your assumed return to approximate a real return, or pair this output with an inflation-adjusted spending goal.

A smooth average return is not how markets behave — bad years early in retirement, while you are withdrawing, can permanently impair a portfolio compared to the same average returns in a different order. Projections here are illustrative; real plans often add cash buffers, bond ladders, or spending flexibility in down markets.

• Career break: Model zero contributions for a few years to see how much extra you need to save afterward to catch up.
• Late max-out: After age 50, IRS catch-up contributions can materially change the curve — plug the higher monthly amount in when eligible.
• Early retirement: Shortening the accumulation phase and lengthening withdrawal years usually requires a lower safe withdrawal rate or a larger multiple of expenses saved.