Are you saving enough for the retirement you want?
Use this planner to calculate your retirement nest egg based on your current income, savings rate, and future budget. We'll show you if you are on track or if you need to adjust your contributions. For a simpler view of compound growth without the retirement-specific assumptions, try the investment calculator.
Retirement Plan Details
Enter your financial details below.
How to Use the Retirement Calculator
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Enter your current age and retirement age
Most U.S. retirees stop full-time work somewhere between 62 and 67, but pick the age that fits your plans. Earlier retirement requires either a larger nest egg or a lower spending budget.
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Enter your current savings and contributions
Add your existing 401(k), IRA, and brokerage balances to the "Current Savings" field. For monthly contributions, include both your own deposits and any employer match.
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Set your expected return and retirement budget
For a diversified stock-and-bond mix, 6% to 8% is a common return assumption. For your monthly retirement budget, use 70% to 80% of your current spending unless you expect major lifestyle changes.
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Review the gap analysis
The calculator compares your projected investment income (using the 4% rule) plus Social Security against your retirement budget. A green surplus means you're on track; a red shortfall tells you how much more you need to save monthly to close the gap.
How We Calculate Your Results
1. The Growth Phase: We calculate your investment growth from your current age to your retirement age using compound interest. We separate your "Principal" (the actual cash you put in) from "Interest" (the market returns) to show the power of compounding in the chart above.
2. The Income Phase: To estimate how much your nest egg can pay you, we use the 4% Safe Withdrawal Rule. This rule suggests you can withdraw 4% of your total savings annually without running out of money for at least 30 years.
3. The Gap Analysis: Finally, we add your estimated investment income to your "Other Income" (like Social Security) and compare it to your "Monthly Budget."
Formula: (Nest Egg * 0.04 / 12) + Other Income - Monthly Budget = Surplus or Shortfall.
Frequently Asked Questions
How much money do I need to retire comfortably?
A common rule of thumb is the "Rule of 25," which suggests you need to save 25 times your expected annual expenses. For example, if you need $40,000 per year from your savings (after Social Security), you should aim for a nest egg of $1,000,000. The number changes if you expect a long retirement (early retiree) or significant healthcare costs.
What is the 4% Safe Withdrawal Rule?
The 4% rule is a guideline from the "Trinity Study" used by financial planners. It assumes that if you invest in a balanced portfolio of stocks and bonds, you can withdraw 4% of your starting balance in the first year of retirement, and adjust that amount for inflation every subsequent year, with a very low risk of running out of money for 30 years. Some early-retirement planners use a more conservative 3.5% to handle longer retirement horizons.
Does this calculator account for inflation?
The calculations above use "nominal" returns, meaning they do not subtract inflation. To view your results in "today's dollars" (purchasing power), lower your "Expected Annual Return" by the inflation rate. For example, if you expect an 8% market return and 3% inflation, enter 5% as your return rate.
How much of my income should I save?
Most experts recommend saving 15% of your pre-tax income annually starting in your 20s or early 30s, on top of any employer 401(k) match. If you start in your 40s or 50s, you may need to increase this to 20% or 25% to catch up. The savings goal calculator can help you reverse-engineer the monthly savings rate needed to hit a specific nest egg target.
What's the order of operations for retirement accounts?
The widely-recommended order: (1) contribute enough to your 401(k) to capture the full employer match, (2) max out a Roth IRA if eligible ($7,000/year in 2025, $8,000 if 50+), (3) return to the 401(k) and contribute up to the annual limit, (4) use a taxable brokerage account for anything beyond that. The match is free money; the Roth gives you tax-free retirement income.
Should I keep retirement savings in stocks or move to safer investments as I age?
Most planners recommend a "glide path" that gradually shifts from mostly stocks (when you're young and have decades to ride out volatility) to a more balanced mix of stocks and bonds as you near retirement. A common rule of thumb is "110 minus your age in stocks" — so a 40-year-old would hold about 70% stocks. Target-date retirement funds do this rebalancing automatically.
What about Social Security?
Social Security can replace roughly 30% to 40% of pre-retirement income for average earners, but it shouldn't be your only plan. You can claim as early as 62 (with reduced benefits), at full retirement age (66 to 67 depending on birth year), or delay until 70 for the maximum benefit. Each year you delay past full retirement age increases your benefit by about 8%.
Where should I keep money I'll need in the first few years of retirement?
Most retirees keep 1 to 3 years of living expenses in cash or near-cash so they don't have to sell stocks during a market downturn. A high-yield savings account works for the first year's needs; a CD ladder covers years 2 and 3 with locked-in rates. The remaining money stays invested for the long haul.
Does the calculator account for taxes?
No. The projected nest egg is pre-tax, which is conservative for traditional 401(k)/IRA money (taxed on withdrawal) and overly conservative for Roth money (tax-free on withdrawal). A reasonable adjustment: assume 15% to 20% of withdrawals from traditional accounts go to federal and state income tax. Roth withdrawals come out untouched.
