Retirement Savings Calculator

Companion guide: Saving for Retirement in Your 20s

How to Use the Retirement Savings Calculator

Put in your age, when you want to retire, what you've got saved so far, what you're putting away each month, and the return rate you expect. Then — this is the part people skip — enter how much monthly income you actually want in retirement. The calculator doesn't just show you a big number. It tells you whether that number is enough.

The "on track" indicator is the whole point. If you're falling short, it shows the gap and tells you exactly what monthly contribution would close it. That number might sting. But it's better to know at 28 than at 58.

Play with the retirement age too. Pushing it from 62 to 67 gives your money five more years of compounding and five fewer years of withdrawals. That combo is surprisingly powerful.

The 4% Rule, Explained

The calculator uses something called the 4% rule to estimate your monthly retirement income. Here's the idea: if you withdraw 4% of your nest egg in the first year of retirement and adjust for inflation each year after that, historically your money has lasted at least 30 years.

So if you retire with $1,000,000, you'd pull out $40,000 that first year — roughly $3,333 a month. It's not perfect. Market conditions matter, inflation matters, how long you live matters. But as a planning tool, it's been the standard benchmark since the Trinity Study in the 1990s and it still holds up reasonably well.

If you want to be more conservative — and I generally think you should — plan for 3.5% instead. Better to have too much than too little.

Why Starting Early Changes Everything

I keep hammering this point because the math is genuinely shocking every time I run it.

Say you start at 25, putting away $300 a month at 7% returns. By 65 you've got about $790,000. Not bad. Your total contributions? $144,000. Compound interest did most of the work — over $646,000 of that is pure investment growth.

Now start at 35 instead. Same $300/mo, same 7%, same retirement age. You end up with about $366,000. You contributed $108,000, so growth added $258,000. Still good. But that ten-year head start was worth $424,000. You can't make that up by saving harder. The math won't let you.

This isn't meant to guilt anyone who started late. Every dollar you invest today is doing more than the dollar you invest tomorrow. But if you're in your twenties reading this? You have an advantage that literally no amount of money can replicate later. Don't waste it.

What Return Rate Should I Use?

This comes up in every conversation about retirement planning, and the honest answer is: nobody knows for sure.

• Conservative (5-6%): If you want to sleep well at night. Accounts for inflation eating into nominal returns. I'd use this if you're within 10-15 years of retirement.
• Moderate (7-8%): The historical long-run average for a diversified stock portfolio after inflation is roughly 7%. This is what most financial planners use as a baseline for someone with 20+ years to go.
• Aggressive (9-10%): Historically possible over very long periods with heavy stock allocation, but you're betting on the future looking like the past. Risky to plan around.

My suggestion? Use 7% for your main projection. Then drop it to 5% and see if you're still okay. If the conservative number still works, you're in good shape. If it doesn't, maybe bump up that monthly contribution a bit.

Employer Match: Free Money You Might Be Ignoring

If your company matches 401(k) contributions, that match is not included in the "monthly contribution" field by default — but it should be. Say you put in $400/mo and your employer adds $200 in matching. Your actual contribution is $600/mo. Enter that.

Not contributing enough to get the full employer match is the closest thing to a guaranteed financial mistake that exists. It is literally part of your compensation that you're leaving on the table. If your employer matches 50% up to 6% of your salary and you're only contributing 3%... please fix that before you close this page. Seriously.

Frequently Asked Questions

How much should I have saved by age 30? 40? 50?

The old Fidelity guideline says 1x your salary by 30, 3x by 40, 6x by 50. Those are decent rough benchmarks. But they assume you started saving in your mid-twenties and that you need about 80% of your pre-retirement income. Your situation might be completely different — someone with a pension and no mortgage needs way less than someone with neither.

Use this calculator with your actual numbers instead of following generic age-based rules. That's the whole point of it.

What if I'm starting late?

You've got fewer years for compounding to work, so you need to compensate with higher contributions. That's the honest answer. The good news: if you're in your peak earning years (40s-50s), you probably have more room to save than you did at 25. Catch-up contributions help too — after 50, the IRS lets you put extra into 401(k)s and IRAs above the normal limits.

Also consider whether you can work a few extra years. The difference between retiring at 62 and 67 is enormous — both because of additional savings years and because you're shortening the withdrawal period. Run both scenarios in the calculator and you'll see what I mean.

Should I pay off my mortgage or invest more for retirement?

Classic debate. If your mortgage rate is under 5-6%, you'll probably come out ahead investing — especially in tax-advantaged accounts. A 7% average return beats a 4% mortgage, and the retirement account gives you tax benefits on top. But there's a psychological value to being debt-free that spreadsheets can't capture. Some people sleep better owning their home outright even if the math says invest. Either approach is defensible.

Does this account for Social Security?

No, and that's on purpose. Social Security benefits vary a lot based on your earnings history and when you claim. Think of it as a bonus on top of whatever this calculator projects. If you want to include it, check your latest Social Security statement for your estimated benefit and subtract that from the "desired monthly income" field. That way you're calculating the gap your personal savings need to fill.

Is 4% still a safe withdrawal rate?

It's debated. Some recent research suggests 3.3-3.5% might be more appropriate given current bond yields and valuations. Other studies say 4% is still fine, especially if you're flexible about spending in down years. The safest approach: plan for 4% but be willing to tighten your belt temporarily if markets tank early in your retirement. Having that flexibility is the real safety net.