The question behind retirement planning is simple: will your savings be large enough to fund the life you want? This calculator projects your balance at retirement, converts it into today's dollars, and estimates a sustainable annual income using the widely cited 4% rule.
How this calculator works
Your current savings and monthly contributions compound at your expected return until your retirement age.
The result is divided by cumulative inflation to show its purchasing power today, then multiplied by 4% to estimate a first-year withdrawal that historically lasted about 30 years.
The formula
Income ≈ 0.04 × FV / (1 + i)^y- FV
- projected balance at retirement
- i
- annual inflation
- y
- years until retirement
Worked example
A 35-year-old with $50,000 saved, adding $800 a month at 7% for 30 years, reaches about $1.38 million.
At 2.5% inflation that is about $659,000 in today's dollars, supporting roughly $26,000 a year — before Social Security.
Tips
- Always contribute enough to get the full employer 401(k) match — it is an instant return.
- Raise contributions by 1% of pay each year or with every raise.
- Check your Social Security estimate at ssa.gov and add it to the income shown here.
Frequently asked questions
How much should I have saved for retirement?
A common benchmark is about 1× your salary by 30, 3× by 40, 6× by 50 and 10× by 67, but your target depends on your planned spending.
What is the 4% rule?
Withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation, has historically lasted at least 30 years for a balanced portfolio. It is a guideline, not a guarantee.
What return should I assume?
Many planners use 5%–7% for a diversified portfolio before inflation. Lower assumptions give a more cautious plan.