What annual return rate should I use?

The US stock market has averaged roughly 10% annually before inflation, or about 7% after inflation. A diversified 70/30 stocks-bonds portfolio might average 6–8%. For a conservative estimate use 5–6%. For a moderate estimate, 7%. Run the calculation at multiple rates to see the range rather than relying on one number.

From Bengen (1994) and the Trinity Study: a portfolio withdrawing 4% of its balance in year one, adjusted for inflation annually, had a high probability of lasting 30 years across most historical market scenarios. It's a planning guideline, not a guarantee. In extended low-return environments, some planners use 3–3.5%. This calculator uses 4% as the standard baseline.

What is the 25× rule?

Derived from the 4% rule: the nest egg you need is roughly 25 times your desired annual spending. Want $60,000/year? Save $1,500,000. Want $5,000/month ($60,000/year)? Same math. Reduce your Social Security income from the spending target before calculating, since SS covers part of your need.

Does this include Social Security?

No — this projects personal savings only. Enter your desired income minus your expected Social Security to get an accurate target. If you want $4,500/month in retirement and expect $1,700/month from Social Security, enter $2,800/month as your income goal. Use SSA.gov to see your actual projected benefit.

How does inflation affect this?

This calculator uses nominal returns. A 7% return with 3% inflation gives roughly 4% real growth. To see inflation-adjusted results, subtract expected inflation from your return rate before entering it (use 4% instead of 7%). The projected balance will be lower but represents real purchasing power at retirement.

🌅Retirement

Retirement Savings Calculator – Are You Saving Enough?

Are you saving enough for retirement?

What This Does

The most important retirement question isn't "how much do I have?" — it's "how much will I have, and is that enough to fund the life I want?" These are different questions, and most people only track the first one. This calculator answers both. Enter your current age, retirement age, current savings balance, monthly contribution, expected annual return, and the monthly income you want in retirement. The calculator projects your balance using compound growth, estimates monthly income using the 4% safe withdrawal rate, and tells you whether you're on track or exactly how large the gap is. The 4% rule — derived from the Trinity Study — found that a portfolio withdrawing 4% of its balance in year one, adjusted for inflation annually, has historically had a very high probability of lasting 30+ years. The corresponding 25× rule: your nest egg target is roughly 25 times your desired annual spending. These aren't guarantees, but they're the most widely used and empirically supported planning frameworks available. Start with your current contribution. Then try increasing it by $100/month and watch what that single decision compounds into over 20–30 years. The gap between "now" and "a little more" is often the most motivating number this calculator shows.

Assumptions

·Annual return is compounded monthly; actual markets are volatile — use a conservative rate (5–7%) for planning
·The 4% rule assumes a 30-year retirement horizon; longer retirements may warrant using 3–3.5%
·Contributions are constant; does not model contribution growth over time
·Social Security is not included — subtract your expected SS income from your desired monthly income before entering the target
·Inflation is not automatically applied — enter an inflation-adjusted income target for a more accurate picture

How It's Calculated

Projected balance at retirement: FV = PV × (1+r/12)^(n×12) + C × [(1+r/12)^(n×12) – 1] / (r/12) Where: PV = current balance · r = annual return rate · n = years to retirement · C = monthly contribution. Monthly income the balance can support (4% rule): = FV × 0.04 / 12 Your savings target (25× rule): = Desired annual income × 25 Gap: = Target – FV (positive = shortfall; negative = surplus) To close a gap of G dollars in n years at rate r: Required additional monthly contribution = G × (r/12) / [(1+r/12)^(n×12) – 1]

When Should You Use This?

→Annual retirement check-in — see whether you're still on track with your current contribution
→Deciding how much more to contribute — model the compound difference of $100 or $200/month
→Planning a retirement age — see what retiring at 62 vs. 65 vs. 67 does to your projected balance
→Stress-testing assumptions — run at 5% return and 8% return to see the full range
→Setting a concrete savings target using the 25× rule and your actual desired monthly income

Worked Examples

Example 1: 38-year-old, $700/month contribution

Inputs: Age: 38 · Retire: 65 · Balance: $85,000 · Contribution: $700/mo · Return: 7% · Income goal: $4,500/mo

Result: Projected balance: $1,247,000 · Monthly income (4%): $4,157 · Target (25×): $1,350,000 · Gap: $103,000 · Extra needed to close: $85/mo

Just $85/month more — less than a gym membership — closes the entire $103,000 gap. Starting that increase today (27 years before retirement) is the cheapest it will ever be to close.

Example 2: The cost of waiting 5 years to start

Inputs: Age: 30 vs. 35 · Same $500/mo contribution · Return: 7% · Retire: 65

Result: Starting at 30: $1,146,000 | Starting at 35: $782,000 · Difference from 5-year delay: $364,000

Five years of delay costs $364,000 in final balance — despite identical monthly contributions for the remaining years. This is the compound interest argument for starting immediately, even with smaller amounts.

Retirement Savings Calculator

Balance Projection · 4% Rule · Scenario & Sensitivity Analysis

Results update in real time as you adjust any input.

Timeline

Current Age

Retirement Age

Savings & Contributions

Current Savings

Monthly Contribution

All accounts combined — include employer match

Goals & Assumptions

Desired Monthly Income

In today's dollars

Expected Annual Return

Stocks ~7-10%, balanced ~5-7%

Inflation Rate

About This Calculator

This retirement savings calculator uses two compound growth formulas. Future value of existing savings: FV = PV x (1 + r)^n where r is the monthly rate and n is months. Future value of monthly contributions: FV = PMT x ((1 + r)^n - 1) / r. Total projected balance = sum of both. Required nest egg = desired monthly income x 12 x 25 (4% rule). Monthly retirement income = projected balance x 0.04 / 12. Required monthly contribution solver uses the annuity formula inverted to solve for PMT. All results update in real time across all seven inputs.

The Growth tab renders a stacked area chart of contributions (indigo) and investment growth (emerald) building year by year from current age to retirement age, with a ReferenceLine at the required nest egg goal. A horizontal bar chart below shows the final balance composition split between contributions and growth. The Scenarios tab renders a vertical bar chart comparing four scenarios (current, +$200/mo, +$500/mo, retire 5 years later) with the goal line as a ReferenceLine — bars turn emerald when they clear the goal. A second bar chart shows projected balance for seven extra contribution amounts from $0 to $1,000/mo. The Sensitivity tab renders a line chart of projected balance at return rates from 4% to 10%, with the current rate highlighted as a larger dot.

Retirement score (0–100): 70% weight on funded percentage (capped at 90), 10-point time bonus for 25+ year horizon. Dynamic accent: emerald (On Track — Surplus, funded 110%+), indigo (On Track, 90–110%), amber (Approaching Target, 60–90%), orange (Behind, 30–60%), red (Critical Gap, below 30%). A visual funding progress bar below the result hero shows projected balance vs required goal. Four insights adapt to on-track vs gap status, inflation impact, and return sensitivity. Four What To Do Next steps are split between on-track (maintain, maximize accounts, glide path, annual review) and behind (contribution gap, delay retirement, employer match, income target adjustment).

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Common Mistakes to Avoid

✕Using the 4% rule for retirements longer than 30 years — a 40-year retirement warrants a 3–3.5% withdrawal rate
✕Not subtracting expected Social Security from the income target — overstates how much you need to save
✕Treating the projected balance as certain — use a range of return assumptions (5%, 7%, 9%) to see the spread
✕Stopping contributions during market downturns — those are actually the highest-value contribution periods due to lower share prices
✕Hitting the 25× target once and stopping contributions — inflation erodes purchasing power and targets should be revisited periodically

Frequently Asked Questions