Retirement Calculator
Project your retirement savings, see the power of compound interest, and find out if you're on track to hit your goals.
Tip: Use 6-7% for inflation-adjusted growth.
Your Goal
Projected Retirement Balance at Age 65
Growth Breakdown
Goal Analysis
Safe Annual Withdrawal (4% Rule)
$95,054 /yr
Portfolio Growth Over Time
The green area represents your total portfolio balance, showing the exponential growth of compound interest over time compared to your actual contributions (blue line).
Year-by-Year Projection
| Age | Contributions | Balance |
|---|---|---|
| Age 30 | $50,000 | $50,000 |
| Age 31 | $62,000 | $66,007 |
| Age 32 | $74,000 | $83,171 |
| Age 33 | $86,000 | $101,576 |
| Age 34 | $98,000 | $121,312 |
| Age 35 | $110,000 | $142,474 |
| Age 36 | $122,000 | $165,166 |
| Age 37 | $134,000 | $189,499 |
| Age 38 | $146,000 | $215,590 |
| Age 39 | $158,000 | $243,568 |
| Age 40 | $170,000 | $273,568 |
| Age 41 | $182,000 | $305,737 |
| Age 42 | $194,000 | $340,231 |
| Age 43 | $206,000 | $377,219 |
| Age 44 | $218,000 | $416,881 |
| Age 45 | $230,000 | $459,410 |
| Age 46 | $242,000 | $505,013 |
| Age 47 | $254,000 | $553,913 |
| Age 48 | $266,000 | $606,348 |
| Age 49 | $278,000 | $662,574 |
| Age 50 | $290,000 | $722,864 |
| Age 51 | $302,000 | $787,512 |
| Age 52 | $314,000 | $856,834 |
| Age 53 | $326,000 | $931,167 |
| Age 54 | $338,000 | $1,010,874 |
| Age 55 | $350,000 | $1,096,343 |
| Age 56 | $362,000 | $1,187,990 |
| Age 57 | $374,000 | $1,286,262 |
| Age 58 | $386,000 | $1,391,639 |
| Age 59 | $398,000 | $1,504,633 |
| Age 60 | $410,000 | $1,625,796 |
| Age 61 | $422,000 | $1,755,717 |
| Age 62 | $434,000 | $1,895,031 |
| Age 63 | $446,000 | $2,044,415 |
| Age 64 | $458,000 | $2,204,599 |
| Age 65 | $470,000 | $2,376,362 |
How to Use the Retirement Calculator
Planning for retirement means estimating how your current savings and future contributions will grow over time, and comparing that against what you'll actually need to live comfortably.
- Current Age & Retirement Age: Determines your "accumulation phase" (how many years you have left to save and let compound interest work).
- Current Savings: The total amount you already have invested in retirement accounts (401k, IRA, brokerage).
- Monthly Contributions: How much you plan to add to your retirement accounts every month.
- Annual Return: The expected average yearly growth of your investments. A common conservative estimate for a diversified index fund portfolio is 6% to 8% (after inflation).
- Desired Retirement Income: How much money you want to live on each year in retirement.
The Power of Compound Interest
Compound interest is the process where you earn interest on your initial investment, and then you earn interest on that interest in subsequent years.
Because of compounding, the earlier you start saving, the less you actually have to contribute out of your own pocket. If you start saving in your 20s, the vast majority of your final retirement balance will be growth, not your actual contributions.
The 4% Rule (Safe Withdrawal Rate)
What is it?
The 4% rule is a rule of thumb used to determine how much you can safely withdraw from your retirement portfolio each year without running out of money over a 30-year retirement.
How to calculate your "number"
If you know how much annual income you want, multiply it by 25 to find your target portfolio size. For example, to safely withdraw $40,000/year, you need a portfolio of $1,000,000 ($40,000 × 25).
Understanding Inflation
Inflation reduces the purchasing power of money over time. What costs $50,000 today might cost $100,000 in 25 years.
When planning for retirement, you must account for inflation. There are two common ways to do this:
- Inflation-Adjusted Returns (Recommended): Use a lower expected return rate (e.g., 6% instead of 9%). This automatically accounts for 3% inflation, meaning all your final numbers are in "today's dollars," making them much easier to comprehend.
- Nominal Returns: Use the actual expected return (e.g., 9%), but remember that your final million-dollar balance won't buy as much as a million dollars does today.
Sources & Methodology
Our calculator uses standard future value compounding formulas:
Where:
- FV = Future Value (Retirement Balance)
- P = Principal (Current Savings)
- PMT = Monthly Contribution
- r = Annual Interest Rate (decimal)
- n = Number of times compounded per year (12)
- t = Time in years
Data References:
- Investopedia: The 4% Rule (Based on the Trinity Study)
- SEC: Savings and Investing
Frequently Asked Questions
What is a realistic annual return?▼
Historically, the S&P 500 has returned about 9-10% annually before inflation. If you want to view your results in "today's dollars" (adjusting for an average 3% inflation), you should use a return rate of 6% or 7% in the calculator.
Does this calculator include Social Security?▼
No, this calculator only projects the growth of your personal investment portfolio. Social Security benefits would be in addition to the safe withdrawal amount generated by your portfolio.
Should I maximize my 401(k) or IRA first?▼
A common strategy is: 1) Contribute enough to your 401(k) to get the full employer match (it's free money!). 2) Max out a Roth IRA. 3) Go back and max out the rest of your 401(k).
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