Retirement Calculator
Calculate how much you need to retire, how long your savings will last, and required monthly contributions. Accounts for inflation, Social Security, and investment returns.
How much do you need to retire?
How can you save for retirement?
How much can you withdraw after retirement?
How long can your money last?
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How It Works
Enter annual spending in retirement, Social Security or pension income, expected investment return, and inflation rate. The calculator finds the nest egg needed: (Annual spending − Other income) × (1+inflation)^years / withdrawal_rate. Standard: 25× annual gap at 4% withdrawal rate.
Nest egg = Annual gap / withdrawal rate | Standard: 25× annual gapNeed $60k/yr, SS=$20k → gap $40k → nest egg = $40k/0.04 = $1MEnter current savings, retirement target, expected return, and years until retirement. The calculator finds required monthly contribution using the future value annuity formula. Starting earlier or earning higher returns dramatically reduces the required monthly amount.
PMT = (FV − PV(1+r)^n) / [(1+r)^n−1] × rNeed $1M in 30yr at 7%, have $50k now → need ~$660/moEnter portfolio size, annual withdrawal amount (or % of portfolio), expected return, and inflation. The calculator shows: years savings last, final balance at each year, and whether you survive to your target age. At 4% withdrawal from $1M at 6% real return: lasts indefinitely. At 6% withdrawal: runs out in ~25 years.
Depletion: years = 1/(withdrawal rate − real return rate)$1M, $40k/yr (4%), 5% real return → lasts 35+ yearsAll long-term projections should account for inflation. Use real return (nominal − inflation). Stocks have historically returned about 10% nominal and 7% real (3% inflation). The calculator applies inflation to your spending goal, showing the nominal amount you need each year in retirement.
Real return ≈ nominal return − inflation rate7% nominal − 3% inflation = ~4% real return for long-term planningEnter your estimated Social Security benefit (available at ssa.gov). This reduces the gap between your spending and investment income, lowering the required nest egg. SS full retirement age is 62-70; delaying to 70 increases benefit by ~8%/year. The calculator nets SS against spending to find the investment-funded gap.
Required portfolio = (Spending − SS − Pension) / withdrawal rateSS=$24k/yr reduces required nest egg by $24k/0.04=$600kQuick Reference
Verify these in the calculator above.
4% rule
4% rule: need $60k/yr
$1.5M nest egg
SS benefit
SS $20k/yr reduces nest egg
By $500k
Monthly save
$1k/mo at 7%, 30yr
FV ≈ $1.22M
Withdrawal
4% withdrawal on $1M
$40k/yr
SS delay
Delay SS to 70 vs 62
+76% larger benefit
Real return
Real return: 10% nominal, 3% inf.
~7%/yr real
Longevity
$40k/yr withdrawal, 5% real
Lasts 35+ years
Healthcare
Healthcare cost estimate
$300k+ per couple
Tips & Shortcuts
Use 7% real return (nominal returns minus inflation) for long-term stock market projections — this is the historical average after inflation.
Social Security benefits at age 70 are 76% higher than at 62. For healthy individuals, delaying to 70 is often the best "return" available.
The 4% withdrawal rule assumes a balanced portfolio (50-60% stocks, 40-50% bonds). All-stock portfolios can support slightly higher withdrawal rates.
Plan to age 90-95 for safety. Running out of money at 85 is a much bigger risk than saving slightly more than needed.
Healthcare is the biggest retirement wildcard — a $300,000+ healthcare budget is realistic for couples over a 20-30 year retirement.
Common Mistakes
Using nominal returns instead of inflation-adjusted returns
A 10% stock return with 3% inflation gives 7% real growth. Using 10% in projections overstates purchasing power significantly over 30 years. Use real returns (nominal − inflation) for retirement projections.
Forgetting that Social Security reduces the required nest egg
SS income directly reduces how much your investments need to generate. A $2,000/mo SS benefit ($24k/yr) reduces the required nest egg by $600k at a 4% withdrawal rate.
Planning only to age 80
Life expectancy for a 65-year-old is now 85+ (men) and 87+ (women). Plan to 90-95 with a reasonable buffer. Running out of money at 88 is catastrophic.
Underestimating healthcare costs
Fidelity estimates average couple healthcare costs of $300,000+ in retirement. Do not treat Medicare as free — premiums, copays, and long-term care add up significantly.
Not adjusting withdrawal rate for retirement length
The 4% rule is designed for 30-year retirements. Retiring at 55 (40+ year retirement) requires a lower withdrawal rate of 3-3.3% for equivalent safety.
Frequently Asked Questions
The standard rule: save 25× your annual expenses (the 4% rule). If you need $60,000/year, target $1.5M. This funds 30 years of withdrawals at 4%/yr with high historical success rates. Adjust for Social Security income: if SS provides $20,000/yr, you need only 25× ($60,000−$20,000) = $1M.
The 4% rule (Bengen rule): withdraw 4% of your portfolio in year 1, then adjust for inflation each year. Based on historical data, this rate survives 30+ years in 95%+ of scenarios. A $1M portfolio: year 1 withdrawal = $40,000, year 2 = $40,000 × (1+inflation), and so on.
The target is 15% of gross income including employer match. For specific goals: use the calculator with your target nest egg, current savings, expected return, and years to retirement. It calculates the required monthly contribution.
Later starts require either larger contributions, longer working years, or reduced spending targets. The calculator shows the tradeoffs clearly. A 35-year-old saving for retirement at 65 has 30 years of compound growth; a 45-year-old has only 20 years — needing roughly double the monthly contribution for the same outcome.
Inflation erodes purchasing power. At 3% inflation, $60,000 of spending today requires $80,636 in 10 years and $108,368 in 20 years. The calculator adjusts for inflation so your target nest egg reflects future dollars. Use real return (nominal − inflation ≈ 4-5% for stocks) for long-term projections.
The calculator solves for both: the total savings needed AND how long current savings last at different withdrawal rates. Key variables: portfolio size, withdrawal rate, return on investments, inflation, and years in retirement. Longer life expectancy (plan to 90-95) requires larger nest egg or lower withdrawals.
The 4% rule is widely accepted for 30-year retirements. For longer retirements (40+ years): 3.3% is safer. For shorter retirements (20 years): 5% may be acceptable. A withdrawal rate over 5% of initial portfolio has significant failure risk in adverse market scenarios.
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