Retirement Savings Calculator
Retirement Savings Projection
A retirement calculator projects how much your savings will be worth when you retire, given your current savings, monthly contributions and expected investment return. It is a fast way to check whether you are on track - and how much more you might need to save.
The default scenario is worth walking through. A 30-year-old with $20,000 saved contributes $500 a month and earns 7% annually for 35 years. The existing balance alone compounds to roughly $230,000, the stream of contributions adds about $900,000 more, and the retirement balance lands near $1.13 million. Of that total, only $230,000 came out of your pocket - the other $900,000 is growth. Shift retirement to age 55 instead of 65, or drop contributions to $250 a month, and the calculator shows how dramatically the picture dims, because compounding needs time more than it needs skill.
Five inputs shape the projection: your current age, the age you plan to retire, your present balance, the monthly contribution you can sustain, and an average annual return - 7% is the default and a reasonable long-run figure for stock-heavy portfolios. The calculator compounds everything monthly across your remaining working years and returns three lines: the balance at retirement, the total you contributed along the way, and the growth those contributions generated. The third number is usually the largest, which is the lesson the tool exists to teach.
Anyone wondering whether to raise contributions, retire early, or count on a later start will get a straight answer here. It suits 401k and IRA savers alike, since it models the money rather than the account wrapper. The simplifications matter, though: one constant return stands in for decades of market turbulence, sequence risk in the final years is invisible, and the projection ignores inflation, fees, taxes on withdrawals, Social Security and employer matches. Running it at 5% alongside 7% brackets a realistic range, and an annual review keeps the plan honest as salary and savings change.
Frequently Asked Questions
How much should I save for retirement?
A common rule of thumb is to save 15% of your gross income, including any employer match, throughout your career. Tools like this show whether that pace gets you to your target balance; many planners aim to replace 70-80% of pre-retirement income.
What return should I use in a retirement calculator?
Use a conservative, long-term average. Stocks have historically returned about 7-8% after inflation over long periods. For a safety margin, many planners model 5-6%. Always test with a few rates to see how sensitive the result is.
Does this account for inflation and taxes?
No - it projects nominal dollars. Inflation will reduce purchasing power, so consider using a return net of inflation (a "real" return) and remember that withdrawals from tax-deferred accounts are taxed as income.
What is the 4% rule?
A retirement spending guideline: withdraw 4% of your starting balance each year, adjusted for inflation, and the money historically lasted about 30 years. It implies a nest egg of roughly 25 times your first-year spending needs. Treat it as a benchmark, not a guarantee - future returns may differ.
Does an employer match change the math?
It changes it dramatically. A 50% match on your contributions is an instant 50% return before any market growth, so capturing the full match should come before nearly any other investing decision. Add the match to your monthly contribution here to see its compounding effect over decades.
How often should I check my projection?
Once a year is enough for most savers, ideally alongside your account statement. Update your balance, adjust contributions for raises, and confirm the return assumption still matches your allocation. More frequent checking mostly invites unnecessary tinkering with long-term investments.