Retirement Calculator

A retirement calculator answers the question most people avoid asking until it feels urgent: how much will I actually have when I stop working? The answer depends on four things: what you already have, how much you add each month, how long you have, and how the market treats your money. Time is the most powerful variable. A 25-year-old saving $300 a month at 7% will accumulate more than twice as much as a 35-year-old saving the same amount. That gap is not about talent or income. It is about compound interest having more years to work. Use this calculator to see where you stand, test different scenarios, and find out what monthly contribution is needed to reach a specific goal.

• Setting a monthly savings target: If you have a goal nest egg in mind, say $1.5 million, adjust the monthly contribution until the projected balance reaches that number. The result tells you exactly what to automate into your 401(k) or IRA.
• Evaluating the cost of starting late: Run the calculation at your current age, then run it as if you had started 5 years earlier. The difference in the nest egg shows the real cost of delaying. This is often the most motivating thing you can do with this calculator.
• Modeling a career change or contribution gap: If you plan to take a few years off from contributing, set contributions to zero and run the calculator to see the projected balance at that point. Then start fresh with the reduced balance and remaining years.
• Checking if you are on track: A common benchmark is having 1x your salary saved by 30, 3x by 40, 6x by 50, and 10x by 67. Enter your current numbers and compare the projected balance to these benchmarks to assess your progress.

• Using too optimistic a return assumption: Using 10 to 12% as the expected return leads to overconfidence. After inflation, fees, and taxes, many investors earn closer to 5 to 7% long-term. A conservative assumption is safer for planning.
• Not including employer match in contributions: If your employer matches 3% of your salary and you earn $60,000, that is $1,800 per year the employer adds. Include this in your monthly contribution. Not capturing the full match is leaving free money on the table.
• Forgetting about inflation: A $1 million nest egg in 35 years buys much less than $1 million today. Use a return assumption that is net of inflation (typically 4 to 5%) for a real-dollar projection, or mentally discount the nominal result.
• Assuming Social Security will cover a large portion: Social Security replaces about 40% of pre-retirement income for average earners. That percentage is lower for higher earners. Plan for Social Security as a supplement, not a foundation.

1. 1Enter your current age and the age you plan to retire.
2. 2Enter your current retirement savings across all accounts: 401(k), IRA, brokerage, pension cash value, etc.
3. 3Enter your total monthly retirement contribution (including any employer match).
4. 4Enter your expected average annual return. A broadly diversified portfolio has historically averaged about 7% after inflation adjustment, or about 10% nominal.
5. 5The calculator computes the number of months until retirement, then applies the future value formula with monthly compounding.
6. 6Results show the projected nest egg, years to retirement, total contributions, and the amount that comes from investment growth.

• Max out any employer match first: An employer match is an immediate 50 to 100% return on that contribution. Always contribute at least enough to capture the full match before putting money anywhere else.
• Increase contributions with every raise: When you get a raise, increase your retirement contribution percentage before adjusting your lifestyle. Even a 1% increase each year compounds significantly over a 30-year career.
• Use tax-advantaged accounts in order: The general order: employer 401(k) up to the match, then max Roth IRA ($7,000/year), then max the 401(k) ($23,500/year), then taxable brokerage. This sequence typically produces the best after-tax outcome.
• Run the calculator annually: Your balance, contribution rate, and expected return all shift over time. An annual check tells you whether you are ahead, behind, or on track, and lets you adjust contributions before the gap becomes large.