Retirement Savings Calculator
Project your retirement savings growth and find out if you're on track to meet your retirement goals. Adjust the inputs to see how much you need to save monthly to retire comfortably.
Your Information
The 4% Rule Estimate
Savings Growth Over Time
Year-by-year breakdown showing contributions (teal) and investment growth (blue) stacked.
Year-by-Year Growth
Detailed breakdown of your retirement savings growth over time.
| Year | Age | Contribution | Growth | Balance |
|---|
How Retirement Planning Works
Compound Growth
Your retirement savings grow through compound interest. Early contributions have decades to grow, which is why starting early matters so much. A $1,000 contribution at age 25 could be worth over $10,000 by age 65 at 7% annual returns.
The 4% Rule
The 4% rule suggests you can withdraw 4% of your retirement savings in the first year, adjust for inflation each year after, and your money should last 30 years. It's based on historical data but may need adjustment depending on market conditions and your specific situation.
Inflation Impact
Inflation erodes purchasing power over time. At 3% annual inflation, $1,000,000 in 30 years will have the purchasing power of about $412,000 today. That's why it's important to look at both nominal and real (inflation-adjusted) values when planning retirement.
Catch-Up Contributions
If you're starting late, you may need to save more aggressively. Many retirement accounts allow "catch-up" contributions for people over 50. For 401(k)s, this means an extra $7,500/year on top of the regular $23,000 limit. IRAs allow an extra $1,000.
Retirement Savings Milestones by Age
General guidelines for how much you should have saved as a multiple of your annual salary. These are targets to help gauge progress, assuming you want to retire with a similar lifestyle.
| Age | Suggested Savings | Example (60k salary) |
|---|---|---|
| 30 | 1x annual salary | $60,000 |
| 35 | 2x annual salary | $120,000 |
| 40 | 3x annual salary | $180,000 |
| 45 | 4x annual salary | $240,000 |
| 50 | 6x annual salary | $360,000 |
| 55 | 7x annual salary | $420,000 |
| 60 | 8x annual salary | $480,000 |
| 65 | 10x annual salary | $600,000 |
Worked Examples
Starting at 25: Early Bird Advantage
Age 25, no savings, contributing $500/month at 7% annual return.
At age 65: $1,315,000 saved
Total contributed: $240,000
Investment growth: $1,075,000
Growth represents 82% of the final amount. Time is your biggest asset.
Starting at 40: Playing Catch-Up
Age 40, $50,000 saved, contributing $1,500/month at 7% annual return.
At age 65: $1,165,000 saved
Total contributed: $500,000
Investment growth: $665,000
Higher contributions required to make up for lost compounding years.
The Impact of Return Rate
Age 30, $20,000 saved, $1,000/month for 35 years:
- 5% return: $1,005,000
- 7% return: $1,635,000
- 9% return: $2,650,000
A 2% difference in return rate can mean hundreds of thousands of dollars over decades.
Frequently Asked Questions
How much do I need to retire?
A common rule of thumb is to have 25 times your desired annual income saved by retirement. For example, if you want $50,000/year in retirement, you'd need $1,250,000. This is based on the 4% rule. Your actual needs depend on your lifestyle, health costs, Social Security benefits, pensions, and other income sources.
What is the 4% rule?
The 4% rule is a retirement withdrawal strategy. It states that if you withdraw 4% of your portfolio in the first year of retirement, and adjust that amount for inflation each year, your savings should last 30 years with high probability. For a $1,000,000 portfolio, the first year withdrawal would be $40,000. This rule was developed from historical market data but may need adjustment based on current market conditions and your time horizon.
How much should I save per month for retirement?
A common guideline is to save 15% of your gross income for retirement. For someone earning $60,000/year, that's $750/month. If you're starting later, you may need to save more aggressively to catch up. The calculator above can show exactly how much you need to save monthly to reach your specific retirement goal.
What rate of return should I expect on retirement savings?
A balanced portfolio (mix of stocks and bonds) historically returns around 7% annually before inflation. Conservative portfolios (more bonds) might return 5-6%, while aggressive portfolios (mostly stocks) might return 8-10%. As you approach retirement, most advisors recommend shifting to more conservative allocations. The calculator defaults to 7%, which is a moderate assumption.
Does inflation matter for retirement planning?
Yes. Inflation reduces the purchasing power of your savings over time. Historical U.S. inflation averages around 3% per year. If you retire with $1,000,000 today, it will have the purchasing power of about $554,000 in 20 years at 3% inflation. The calculator shows both nominal (actual dollar amount) and real (inflation-adjusted) values.
Does this calculator store my data?
No. All calculations run entirely in your browser using JavaScript. No inputs, results, or financial data are sent to any server. Nothing is stored or logged.
Related Tools
- Compound Interest Calculator — see how your savings grow with compound interest
- Savings Goal Calculator — determine how much to save to reach a specific goal
- Inflation Calculator — understand how inflation affects purchasing power
- Investment Return Calculator — calculate returns on investments
- Net Worth Calculator — track your overall financial health
Privacy & Limitations
- Client-side only. No data is sent to any server. No cookies, no tracking of inputs or results.
- Simplified projections. This calculator assumes constant contribution amounts and a fixed rate of return. Real investments experience variable returns and you may adjust contributions over time.
- Does not account for taxes. Retirement account withdrawals may be taxable depending on account type (401k vs Roth IRA). Consult a tax professional.
- Does not include Social Security. Most retirees receive Social Security benefits which reduce the amount you need to save. Check your projected benefits at ssa.gov.
- The 4% rule is a guideline. It's based on historical data but may need adjustment. Some experts recommend 3-3.5% for longer retirements or uncertain markets.
- Not financial advice. This tool is educational. Consult a qualified financial advisor for personalized retirement planning.
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Retirement Savings Calculator FAQ
How much do I need to retire?
A common rule of thumb is to have 25 times your desired annual income saved by retirement. For example, if you want $50,000/year in retirement, you'd need $1,250,000. This is based on the 4% rule, which suggests withdrawing 4% of your portfolio each year. Your actual needs depend on lifestyle, health costs, Social Security, and other income sources.
What is the 4% rule?
The 4% rule is a retirement withdrawal strategy. It states that if you withdraw 4% of your portfolio in the first year of retirement, and adjust that amount for inflation each year, your savings should last 30 years with high probability. For a $1,000,000 portfolio, the first year withdrawal would be $40,000. This rule was developed from historical market data but may need adjustment based on market conditions and your time horizon.
How much should I save per month for retirement?
A common guideline is to save 15% of your gross income for retirement. For someone earning $60,000/year, that's $750/month. If you're starting later, you may need to save more aggressively. The calculator can show exactly how much you need to save monthly to reach your retirement goal based on your current age, savings, expected return, and target retirement age.
What rate of return should I expect on retirement savings?
A balanced portfolio (mix of stocks and bonds) historically returns around 7% annually before inflation. Conservative portfolios (more bonds) might return 5-6%, while aggressive portfolios (mostly stocks) might return 8-10%. As you approach retirement, most advisors recommend shifting to more conservative allocations. The calculator defaults to 7%, which is a moderate assumption for long-term growth.
Does inflation matter for retirement planning?
Yes. Inflation reduces the purchasing power of your savings over time. Historical U.S. inflation averages around 3% per year. If you retire with $1,000,000 today, it will have the purchasing power of about $554,000 in 20 years at 3% inflation. The calculator shows both nominal (actual dollar amount) and real (inflation-adjusted) values to help you understand what your savings will actually be worth.
Does this calculator store my data?
No. All calculations run entirely in your browser using JavaScript. No inputs, results, or financial data are sent to any server. Nothing is stored or logged.