Retirement Savings Calculator

Calculate how much your retirement savings will grow and your monthly income in retirement.

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Enter your values and click Calculate

This retirement savings calculator projects your portfolio value at retirement using compound growth, then estimates your sustainable monthly income using the 4% withdrawal rule — the widely cited guideline from the Trinity Study suggesting that withdrawing 4% of your portfolio annually has historically supported 30-year retirements without depleting savings. Enter your current age, target retirement age, existing savings, monthly contribution, and expected annual return to see your projected portfolio value, total contributions, total investment growth, and estimated monthly retirement income. The calculator uses annual compounding for contributions and existing savings. The 4% rule provides a conservative starting estimate — actual withdrawal strategies may differ based on market conditions, Social Security income, pension benefits, and personal spending needs. This tool is for educational planning purposes; consult a financial advisor for personalized retirement planning.

How It Works

The calculator uses two compound growth formulas. Future value of existing savings: FV = P × (1 + r)^t, where P is current savings, r is annual return, and t is years to retirement. Future value of monthly contributions uses the annuity formula: FV = PMT × [(1 + r/12)^(12t) - 1] / (r/12), where PMT is monthly contribution and r/12 is monthly rate. These two values are summed for total projected portfolio. Monthly retirement income is estimated using the 4% rule: annual withdrawal = portfolio × 0.04, divided by 12. The 4% rule comes from the Trinity Study (1998), which found that a 4% annual withdrawal from a diversified portfolio had a very high probability of lasting 30+ years across historical market conditions. It is a planning guideline, not a guarantee.

Examples

30-Year Career Saver
Age 35, retiring at 65 with $50,000 saved, contributing $500/month at 7% return.
Result: Projected portfolio of approximately $947,000 and monthly retirement income of about $3,156.
Late Starter — Aggressive Contributions
Age 45, retiring at 65 with $30,000 saved, contributing $1,500/month at 7% return.
Result: Projected portfolio of approximately $817,000 and monthly retirement income of about $2,723.
Early Saver — Conservative Return
Age 25, retiring at 65 with $10,000 saved, contributing $300/month at 6% return.
Result: Projected portfolio of approximately $604,000 and monthly retirement income of about $2,013.

Frequently Asked Questions

What is the 4% rule?
The 4% rule states that retirees can withdraw 4% of their portfolio in the first year of retirement, then adjust for inflation annually, with a high probability that the portfolio lasts 30 years. It originated from the Trinity Study (1998), which analyzed historical stock and bond returns. Many financial planners now suggest 3–3.5% for longer retirements or uncertain markets. The 4% figure in this calculator is a planning estimate — your actual withdrawal rate should be personalized with a financial advisor.
What annual return should I use?
The historical inflation-adjusted average annual return of the S&P 500 is approximately 7% per year over long periods. For a diversified portfolio including bonds, 5–6% is a more conservative estimate. For planning purposes, 6–7% is commonly used for a mostly-stock retirement portfolio with a 20–30 year horizon. Use a lower rate (5–6%) if you want a conservative projection, or 7–8% for a moderate estimate. Past returns do not guarantee future results.
Does this include Social Security?
No — this calculator shows only the projected value of personal savings and contributions. Social Security benefits provide additional retirement income for most Americans. You can estimate your Social Security benefit at ssa.gov/estimator. Add your expected monthly Social Security benefit to the monthly income figure from this calculator for a more complete retirement income picture.
How much do I need to retire?
A common rule of thumb is to save 25× your expected annual expenses in retirement (the inverse of the 4% rule). If you expect to spend $60,000/year, you need $1.5 million. Another guideline: aim for 10–12× your final salary saved by retirement. The right number depends on your planned lifestyle, healthcare costs, other income sources (Social Security, pension, part-time work), and how long you expect to live. This calculator helps you see whether your current savings trajectory reaches your goal.

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