Figures in today’s money are adjusted for inflation, so you can compare them with today’s prices. Assumes steady returns, monthly contributions and no withdrawals before retirement. Real returns vary, and withdrawal rates are guidelines, not guarantees. For education only, not financial advice.
What this retirement calculator does
This retirement calculator shows whether your savings are on track for the retirement you want. Enter your age, your savings and your monthly contributions, and it shows:
- what your savings could be worth at retirement, in today's money and in future dollars
- the yearly income those savings could support
- how much you'd need for the income you want
- your gap, if any, and how much more to save each month to close it
A chart shows your projected savings growing toward your target over time.
How to use it
- Your age and retirement age: how many years you have to save.
- Saved so far: what's already in your retirement accounts and investments.
- Monthly contribution: what you add each month, including any employer contributions.
- Raise contributions each year by: for example 2%, if you plan to increase your saving as your pay rises.
- Expected yearly return: a long-term average for your investments. Try a few rates, such as 5%, 6% and 7%.
- Inflation: used to show everything in today's money, so you can compare with today's prices.
- Withdrawal rate: how much of your savings you plan to take each year in retirement. A common guideline is around 4%.
- Yearly income you want: from your savings, on top of any pension or government benefits.
Why "today's money" matters
$1 million in 35 years won't buy what $1 million buys today. This calculator adjusts for inflation, so the results show what your future savings would be worth in today's prices. That makes it much easier to judge whether your plan is enough. See how much $1 million will be worth in 30 years for more.
Example
A 30-year-old with $20,000 saved, contributing $500 a month rising 2% a year, earning 7% with 3% inflation, retiring at 65:
- Savings at 65: about $482,000 in today's money (about $1.36 million in future dollars)
- Income at a 4% withdrawal rate: about $19,300 a year in today's money
- To reach $40,000 a year: about $647 more a month
Small changes make a big difference. Starting earlier, saving a little more, keeping fees low and retiring a few years later all help.
How much do you need to retire?
A simple way to estimate your target is:
Target savings = yearly income you want ÷ withdrawal rate
At a 4% withdrawal rate, every $10,000 of yearly income needs about $250,000 of savings. For $40,000 a year, that's about $1 million in today's money.
Withdrawal rates are rough guidelines. The right rate depends on how long your retirement lasts, how your investments perform, and your other income. Consider speaking to a qualified adviser as retirement gets closer.
Ways to close a retirement gap
- Increase contributions, especially with each pay rise
- Take any employer match in a workplace retirement plan
- Use tax-advantaged accounts where available
- Keep investment fees low. See how much $500 a month can grow
- Work a little longer, which adds contributions and shortens the time you need to fund
- Reduce your target income, for example by paying off your mortgage before you retire
Frequently asked questions
Is the 4% rule safe?
It's a widely used planning guideline, not a guarantee. A lower withdrawal rate is more cautious; a higher one carries more risk of running out.
What return should I use?
Many people test a range, such as 5% to 7% a year for a diversified, long-term portfolio, before fees and inflation. Returns are never guaranteed.
Does the calculator include pensions or government benefits?
No. Enter the income you want from your own savings, on top of any other retirement income you expect.
Is my data saved?
No. The calculator runs in your browser, and nothing you enter is stored.
Related tools and guides
This calculator is for education only and is not financial or retirement advice. Results are estimates based on the assumptions you enter. Investments can fall as well as rise.