🏖️ Retirement Calculator
Plan your retirement with confidence. Input your current savings, how much you contribute each month, and your expected returns to see your projected retirement fund and estimated monthly income using the 4% safe withdrawal rule.
📋 When to Use the Retirement Calculator
Early-career professionals use this calculator to see how starting to save at 25 vs. 35 dramatically changes their retirement fund — even with the same monthly contribution. Mid-career savers check whether they're on track by comparing projected funds against retirement goals. Anyone nearing retirement estimates their sustainable monthly income using the 4% safe withdrawal rule. The doughnut chart shows how much of your nest egg comes from your own contributions versus compound growth. ⚠️ This calculator projects returns using constant-rate assumptions and the 4% rule — actual market returns vary significantly, inflation erodes purchasing power, and the 4% rule is a guideline, not a guarantee. Past performance ≠ future results. Consult a certified financial planner for personalized retirement advice.
⚙️ How the Retirement Calculator Works
The calculator computes years until retirement as n = (retirementAge − currentAge) × 12 months. Your retirement fund is calculated using the future value of an annuity formula: FV = P × (1+r)^n + PMT × ((1+r)^n − 1) / r, where P = current savings, PMT = monthly contribution, r = monthly return rate (annual ÷ 12), and n = months until retirement. For zero-rate scenarios the formula simplifies to P + PMT × n. Estimated monthly income follows the 4% safe withdrawal rule: (FV × 0.04) ÷ 12 — a common retirement planning benchmark suggesting you can withdraw 4% annually while preserving capital. The doughnut chart breaks down how much of your final fund came from contributions vs. compound growth. All computation is browser-side; nothing is transmitted.
📖 How to Use the Retirement Calculator
- Enter your current age and retirement age — The calculator uses these to determine how many years (and months) you have left to save and invest before retirement.
- Input your current savings — Enter how much you already have saved for retirement across all accounts (401(k), IRA, savings, etc.). If you're just getting started, you can leave this at $0.
- Set your monthly contribution — Enter how much you plan to contribute to your retirement savings each month. Consistent monthly contributions are one of the most powerful ways to build wealth over time.
- Choose your expected annual return — Enter the average annual return you expect from your investments. The historical average for the S&P 500 is around 7–10%, but a more conservative 5–7% is common for retirement planning. Review your projected retirement fund and estimated monthly income.
❓ Frequently Asked Questions
What is the 4% safe withdrawal rule?
The 4% rule is a widely-used retirement planning guideline that suggests you can withdraw 4% of your retirement portfolio in the first year, then adjust that amount for inflation each subsequent year, with a low probability of running out of money over a 30-year retirement. This calculator shows your estimated monthly income as (Retirement Fund × 4%) ÷ 12.
Does this calculator account for inflation?
This calculator projects nominal (non-inflation-adjusted) values. For a more accurate real-world estimate, consider using a lower expected return rate to approximate inflation-adjusted returns (e.g., use 5–6% instead of 7% to roughly account for ~2–3% annual inflation).
What assumptions does this calculator make?
This calculator assumes: (1) your monthly contributions remain constant until retirement, (2) your annual return compounds monthly, (3) you don't make any early withdrawals, and (4) the 4% rule is used to estimate retirement income. It does not account for taxes, account fees, or changes in contribution amounts over time.
What return rate should I use for retirement planning?
Many financial planners recommend using a conservative estimate of 5–7% for a balanced portfolio. While the S&P 500 has historically returned ~10% annually before inflation, using a more conservative number builds in a margin of safety. Adjust based on your personal risk tolerance and investment strategy.