Retirement Calculator

About the Retirement Calculator

The projection grows your savings month by month at the return you enter, adding your contribution at the end of each month and raising it each year if you set a yearly raise. Converting to today's money divides by the inflation that builds up until you retire. The nest egg target is the yearly income you need from savings, which is your spending minus other income such as a pension or Social Security, raised for inflation to the retirement date and divided by the withdrawal rate. A 4% rate means a target of 25 times the first year's income. The extra monthly saving that closes a shortfall is found by solving the same projection for the added amount. In retirement the calculator withdraws at the start of each month, raises the amount with inflation every 12 months, and compounds the rest at the return after retirement, so it can tell you the age the money runs out, or the balance left at your planning age, and the level of spending that would just last. For example, a 35 year old with 50,000 saved and 800 a month at 7% reaches about 1,381,802 at 65, which is about 658,764 in today's money at 2.5% inflation, and a spending need of 60,000 with 20,000 of other income gives a target of about 2,097,568. These are projections, not forecasts: returns change every year, and the order of good and bad years matters. Taxes and fees are not included, and this is general information, not financial advice.