Retirement planning has two halves. In the first, you save and the balance grows; in the second, you draw it down and the balance has to last. This calculator handles both. It projects your nest egg at retirement, translates it into today’s dollars, and estimates a yearly income that rises with inflation and runs out exactly when your planning horizon does.
How to use the retirement savings calculator
- Enter your current age, the age you plan to retire and what you have saved so far across retirement accounts.
- Enter your monthly contribution, including any employer match, and an optional yearly raise to that contribution.
- Enter the expected return before retirement and an inflation assumption.
- Under retirement years, enter how many years the money must last and the return during retirement, which is usually lower because portfolios become more conservative.
The table runs age by age, first through the saving years and then through the withdrawal years, with every balance also shown in today’s dollars.
How the projection works
Saving phase. The annual return is converted to a monthly rate, r = (1 + return)1/12 − 1, and the balance compounds month by month with your contributions added at month-end. Contributions step up once a year by the raise you enter.
Today’s dollars. Any future amount is divided by (1 + inflation)years.
Withdrawal phase. The first-year withdrawal W solves a growing annuity due:
where g is the return in retirement, i is inflation and N is the number of years. Each later withdrawal is the previous one times (1 + i).
Worked example
You are 35 with $60,000 saved, contribute $750 a month (raising it 2% a year) and expect 6.5% a year until retiring at 67. Inflation is 2.5%. In retirement you want the money to last 30 years while earning 4.5%.
- Nest egg at 67: $1,606,749.74, worth $729,095.72 in today’s dollars
- Of that, $458,043.27 is money you put in and $1,148,706.48 is growth
- Sustainable first-year income: $69,897.11 ($5,824.76 a month), rising 2.5% a year until age 97
- In today’s dollars, that first-year income is about $31,717 ($2,643 a month)
- The 4% rule would suggest $64,269.99 in year one — in the same neighborhood
The power of a later retirement date
Same saver, same assumptions, money planned to last to age 97:
| Retire at | Nest egg | In today’s dollars | First-year income (today’s dollars) |
|---|---|---|---|
| 62 | $1,104,504 | $567,052 | $22,079 |
| 65 | $1,385,755 | $660,649 | $27,417 |
| 67 | $1,606,750 | $729,096 | $31,717 |
| 70 | $1,997,810 | $841,819 | $39,632 |
Working longer helps three ways at once: more contributions, more years of growth and fewer years of withdrawals. Retiring at 70 instead of 62 nearly doubles the sustainable income in this example.
Interpreting the result
The estimate assumes the same return every year, which real markets never deliver. A bad run of returns early in retirement — sequence-of-returns risk — can shorten how long money lasts even if the average return is the same, which is why many planners keep a margin of safety. The IRS sets annual contribution limits for 401(k)s and IRAs and adjusts them for inflation, so check that your planned contribution fits. To see how much a fixed annuity could turn part of the nest egg into guaranteed income, try the deferred annuity calculator; to stress-test fees, use the investment account calculator.
This is a hypothetical projection for education and planning, not financial, tax or investment advice. Consider a qualified professional for decisions about your retirement.
Frequently asked questions
How does the calculator estimate retirement income?
It finds the first-year withdrawal that, rising with inflation every year, uses up the nest egg exactly over the number of years you enter while the remaining balance keeps earning your retirement return. This is the present value of a growing annuity, with withdrawals taken at the start of each year.
What is the 4% rule?
A rule of thumb from research on historical US market returns: withdraw 4% of your starting balance in the first year of retirement, then raise the dollar amount with inflation. It was designed to last about 30 years. The calculator shows it alongside its own estimate for comparison.
Why show results in today's dollars?
A million dollars 30 years from now will buy much less than a million dollars today. Dividing by cumulative inflation translates the future figure into today's purchasing power, which is easier to compare with your current budget.
Does this include Social Security or a pension?
No. It projects only the savings you enter. Add expected Social Security benefits or a pension separately when you compare the income estimate with your spending needs.
Are taxes included?
No. Withdrawals from traditional 401(k)s and IRAs are taxed as ordinary income, while qualified Roth withdrawals are tax-free. Reduce the income estimate for taxes if most of your savings are pre-tax.