How to use the retirement calculator
- 1 Enter your current age and the age you want to retire.
- 2 Enter your retirement savings now and how much you save each month.
- 3 Enter your expected return and the yearly income you want in today's dollars.
- 4 Check the inflation and withdrawal rate, then read whether you are on track.
Worked example
Age 35 with $50,000 saved, saving $800 a month at 6%, retiring at 67 and wanting $50,000 a year in today's money. Savings could grow to about $1,218,954. With 3% inflation the goal becomes $128,754 a year, and at a 4% withdrawal rate the target is $3,218,853. Closing the gap needs about $1,785 more a month.
How much is enough?
The 4% rule, from William Bengen's 1994 research, found that withdrawing 4% of a balanced portfolio in the first year, then adjusting for inflation, lasted at least 30 years in every historical period he tested. That means a target of about 25 times your yearly spending.
- Subtract guaranteed income: Social Security and any pension cover part of your spending, so your savings only need to cover the rest.
- Healthcare: Medicare starts at 65; retiring earlier means paying for cover yourself.
- Taxes: withdrawals from traditional 401(k)s and IRAs are taxed as income; Roth withdrawals are not.
Estimate your benefit with the Social Security Calculator, and see what your workplace plan could add with the 401(k) Calculator.
Features
Savings target
Your income goal divided by a withdrawal rate, such as the 4% rule.
Inflation adjusted
Your income goal grows with inflation to the year you retire.
Gap and fix
Shows any shortfall and the extra monthly saving that would close it.
Income your savings support
See the yearly income your projected savings could pay.
When to use it
Retirement check-up
See each year whether you are ahead of or behind your plan. Estimate your benefit with the Social Security Calculator.
Retiring earlier
Compare retiring at 60, 65 and 67. Project your plan with the 401(k) Calculator.
Saving more
See how an extra $200 a month changes your outcome. Retiring early? Try the FIRE Calculator.
Couples
Enter combined savings and income to plan as a household. Plan withdrawals with the RMD Calculator.
Related Savings and Investing tasks
Frequently asked questions
How much do I need to retire?
A common rule is 25 times the yearly income you want from savings, which matches a 4% withdrawal rate. Social Security and pensions reduce the amount you need from savings.
What is the 4% rule?
It is a guideline that withdrawing 4% of your savings in the first year and adjusting for inflation afterwards has historically lasted about 30 years. Some planners now use 3.5% for longer retirements.
Should I include Social Security?
Yes, indirectly. Enter only the income you need from savings, which is your total need minus expected Social Security and any pension.
What inflation rate should I use?
Long-run US inflation has averaged around 3% a year. The calculator uses it to turn today's income goal into future dollars.
What return should I assume?
Many plans use 5% to 7% a year before retirement. A lower figure gives a more cautious answer.
Why is the target so large?
Because it is in future dollars. $50,000 a year today is about $129,000 a year in 32 years at 3% inflation.
Does it include taxes?
No. Withdrawals from traditional 401(k)s and IRAs are taxed, so set your income goal high enough to cover tax, or use Roth savings for tax-free income.
What if I start saving late?
Saving more each month, working a few extra years and delaying Social Security all help. Catch-up contributions to a 401(k) and IRA from age 50 let you put away more each year.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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