Retirement Calculator
Project your retirement nest egg from current savings plus monthly contributions. See your estimated safe withdrawal income at retirement.
How to use this retirement calculator
- 1Enter your current age and the age at which you plan to retire.
- 2Enter your current total retirement savings across all accounts (401k, IRA, Roth IRA, etc.).
- 3Enter total monthly contributions including employer match. If your employer matches 3%, and you contribute 6%, enter 9% of your salary as monthly dollars.
- 4Use 7% annual return for an aggressive stock-heavy portfolio; 5–6% for a balanced portfolio; 4% for conservative.
- 5The monthly retirement income shown uses the 4% rule — add expected Social Security benefits on top for your full retirement income picture.
How it's calculated
FV = P(1+i)^n + PMT×((1+i)^n−1)÷i. Monthly income = FV × 4% ÷ 12. Uses the 4% safe withdrawal rate.
About the Retirement Calculator
Retirement planning is a long game measured in decades, and the math is unforgiving at both ends of the timeline. Start early enough, and modest contributions build extraordinary wealth. Start late, and even aggressive saving may fall short of a comfortable retirement.
The most common retirement planning mistake is not starting. The second most common is underestimating expenses in retirement. Studies show retirees consistently spend more than planned in their early retirement years (travel, hobbies, gifts to children) and underestimate healthcare costs, which average $315,000 per couple over retirement according to Fidelity's 2024 estimate.
Employer 401k matching is the highest guaranteed return investment available to most Americans, yet approximately 20% of eligible employees do not contribute enough to capture the full match. If your employer matches 100% of contributions up to 4% of salary, and you do not contribute at least 4%, you are leaving free money on the table equal to 4% of your salary every year — no investment can compete with a guaranteed 100% return.
For most people, the highest-leverage retirement action is simply increasing contribution rates early in their career and letting decades of compounding work. A 25-year-old who increases their 401k contribution from 6% to 10% of a $55,000 salary contributes $2,200 more per year. Over 40 years at 7% return, that extra $2,200/year compounds to approximately $467,000 in additional retirement savings — a life-changing difference from a single decision made at 25.
Frequently asked questions
What is the 4% rule and is it still valid?
The 4% rule comes from the Trinity Study (1998), which found that retirees who withdraw 4% of their starting portfolio balance annually (adjusted for inflation each year) had historically near-zero chance of running out of money over a 30-year retirement. At a $1,000,000 portfolio, the 4% rule means $40,000 in year-one withdrawals ($3,333/month). The rule has faced scrutiny in low-return environments — some researchers now suggest 3–3.5% for early retirees with 40+ year horizons. However, 4% remains the most widely cited benchmark and is a reasonable starting point for most people targeting traditional retirement ages.
How much do I need to retire comfortably?
The common benchmark is 25× your desired annual retirement spending (the mathematical inverse of the 4% rule). If you want $60,000/year in retirement income from investments, you need $1,500,000. If Social Security will provide $24,000/year, you only need $36,000/year from investments, requiring $900,000. Your actual number depends on: desired lifestyle, healthcare costs, housing situation, geographic location, and expected retirement length. Many financial planners now recommend 28–33× for safety, especially for early retirees who face longer periods of withdrawal.
What is the maximum I can contribute to retirement accounts in 2024?
For 2024: 401k/403b/457 plans — $23,000 employee contribution ($30,500 if age 50+). IRA (traditional or Roth) — $7,000 ($8,000 if age 50+). HSA (if you have a high-deductible health plan) — $4,150 individual, $8,300 family. SEP-IRA for self-employed — up to $69,000 or 25% of net self-employment income. SIMPLE IRA — $16,000 ($19,500 if age 50+). Maxing all available accounts at age 30 with a $100,000 salary could mean contributing $30,000+/year — a retirement savings rate that would build extraordinary wealth over 35 years.
Should I use a traditional 401k/IRA or a Roth 401k/IRA?
The core trade-off is: traditional accounts reduce your tax bill now (contributions are pre-tax) but you pay taxes on withdrawals in retirement. Roth accounts are funded with after-tax money but grow tax-free and withdrawals are tax-free in retirement. General guidance: choose Roth if you expect to be in a higher tax bracket in retirement than today (common for young earners with growing incomes). Choose traditional if you are currently in a high bracket and expect lower income in retirement. Many financial planners recommend having both — tax diversification in retirement gives you flexibility to manage your taxable income strategically each year.
How does Social Security factor into retirement planning?
Social Security provides a meaningful base of retirement income for most Americans — but it was never designed to fully replace pre-retirement income. The average Social Security benefit in 2024 is approximately $1,907/month ($22,884/year). Maximum benefit for someone retiring at full retirement age (67) in 2024 is $3,822/month. Benefits increase 8% per year from age 62 to 70 if you delay claiming, making delay financially powerful for healthy individuals. To get your personalized estimate, create a free account at ssa.gov and check your Social Security statement.
What happens if my retirement calculator shows I am behind?
Being behind on retirement savings is extremely common — and correctable, especially before age 50. Concrete steps: (1) Increase contribution rate by 1% per year, timed with raises so you do not feel the reduction. (2) Maximize employer match — every unmatched employer dollar is left on the table. (3) Use catch-up contributions if you are 50+ ($7,500 extra in 401k in 2024). (4) Consider working 2–3 extra years — this adds contributions AND reduces years of withdrawal, dramatically improving retirement security. (5) Reduce planned retirement spending — retiring on $45,000/year instead of $60,000 reduces required savings by $375,000.