Retirement Savings Calculator
Project your retirement savings and estimated monthly retirement income.
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This calculator projects your retirement savings based on current balance, monthly contributions and expected market returns. The 4% rule estimates how much you can withdraw annually in retirement without running out of money over a 30-year period. Starting early and contributing consistently are the two most powerful factors in building retirement wealth.
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Frequently asked questions
The 4% rule says you can withdraw 4% of your portfolio in the first year of retirement and adjust for inflation each year, with a high probability of not running out of money over 30 years. A $1,000,000 portfolio supports about $40,000/year or $3,333/month.
A common rule of thumb is 25x your annual expenses (the inverse of the 4% rule). If you need $60,000/year in retirement, aim for $1,500,000. This does not include Social Security or pension income.
Historically the S&P 500 has returned about 10% before inflation (7% after). For planning, 7% is a reasonable assumption for a stock-heavy portfolio. Use 5-6% for a more conservative mix with bonds.
Financial advisors commonly recommend saving 15-20% of gross income for retirement. If your employer matches 401(k) contributions, that counts toward the percentage. Starting at 25, even 10-15% can be sufficient.
Starting at 40 instead of 25 roughly halves your projected balance. To catch up, you need to save a much higher percentage of income. Catch-up contribution limits ($7,500 extra for 401k after age 50) help, but starting early is always better.