Retirement Calculator
Project retirement savings from your age, balance, monthly saving and return, and compare them in today’s dollars with the 4% rule and what lasts to age 90. How it works
Use the Retirement Calculator
About the Retirement Calculator
Saving $500 a month from age 25 to 65 at a 7% return builds about $1,312,407, which is $488,780 in today’s dollars at 2.5% inflation. Under the 4% rule you need 25 times the yearly income your savings must cover, so $60,000 a year takes $1,500,000. The retirement calculator projects your balance and shows how far it is from that target.
Savings at 65 by starting age and monthly amount
| Start | Total paid in | Balance at 65 | In today’s dollars |
|---|---|---|---|
| Age 25, $250 a month | $120,000 | $656,203 | $244,390 |
| Age 25, $500 a month | $240,000 | $1,312,407 | $488,780 |
| Age 25, $1,000 a month | $480,000 | $2,624,813 | $977,561 |
| Age 35, $250 a month | $90,000 | $304,993 | $145,403 |
| Age 35, $500 a month | $180,000 | $609,985 | $290,806 |
| Age 35, $1,000 a month | $360,000 | $1,219,971 | $581,612 |
| Age 45, $250 a month | $60,000 | $130,232 | $79,477 |
| Age 45, $500 a month | $120,000 | $260,463 | $158,953 |
| Age 45, $1,000 a month | $240,000 | $520,927 | $317,906 |
7% annual return compounded monthly, 2.5% inflation, no starting balance, contributions at the end of each month and never increased. An illustration at one assumed return, not a forecast.
Savings target under the 4% rule
| Yearly income wanted | Target with no Social Security | Target with $2,000 a month of Social Security |
|---|---|---|
| $40,000 | $1,000,000 | $400,000 |
| $60,000 | $1,500,000 | $900,000 |
| $80,000 | $2,000,000 | $1,400,000 |
| $100,000 | $2,500,000 | $1,900,000 |
Target = 25 × (income wanted − Social Security for the year). All figures are in today’s dollars.
Frequently asked questions
- How much do I need to retire?
- A common rule of thumb is 25 times the yearly income you need from savings, which is the 4% rule turned around. For $40,000 a year that is $1,000,000, and for $80,000 it is $2,000,000. Social Security lowers the target: a $2,000 monthly benefit covers $24,000 a year, so $80,000 of income needs $1,400,000. The calculator also works out the balance that lasts until the age you enter under Plan to age: at a 7% return and 2.5% inflation, $60,000 a year from 65 to 90 needs $919,947 in today’s dollars, and to 95 it needs $1,008,891.
- How much will I have if I save $500 a month?
- At 7% compounded monthly: $1,312,407 after 40 years, $609,985 after 30 and $260,463 after 20. In today’s dollars at 2.5% inflation those are $488,780, $290,806 and $158,953.
- How long will my retirement savings last?
- Enter the age you want them to last until under Plan to age (life expectancy); it starts at 90. The calculator shows the balance needed at retirement to take your income from savings every year until then, raised with inflation each year, with the balance still earning your return. With the starting example that is $919,947 in today’s dollars against a projected $621,874, short by $298,072. Planning to 85 needs $808,502.
- What is the 4% rule?
- Withdraw 4% of your savings in the first year of retirement, then raise the dollar amount with inflation each year. William Bengen proposed it in 1994 after testing it against US market history back to 1926. He planned for at least 30 years of withdrawals, and in his tests 4% never ran out in under 33. Retiring at 50 or 55 can mean 40 years or more, longer than the rule was built for. It is a guide based on the past, not a guarantee.
- Why is the comparison in today’s dollars?
- Because the income you type is what you would want to spend at today’s prices. $1,475,835 in 35 years buys what $621,874 buys now if inflation runs at 2.5%, so the calculator deflates the projected balance before comparing it with the target.
- What if I start saving at 45?
- Twenty years still compounds. $1,000 a month from 45 to 65 at 7% reaches $520,927, or $317,906 in today’s dollars, from $240,000 paid in. Starting at 35 with the same $1,000 reaches $1,219,971.
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