Finance

Retirement Calculator

Project your retirement savings based on current balance, monthly contributions, years to retirement, and expected annual return.

Retirement Savings at Age 65

$1,434,356

Total Contributed

$260,000

Interest Earned

$1,174,356

Years to Retirement

35 years

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Retirement Savings Formulas

Future Value of Current Savings

FV = PV × (1 + r)ⁿ

Future Value of Contributions

FV = PMT × ((1 + r)ⁿ − 1) ÷ r

How to Use the Retirement Calculator

Enter your current age and the age at which you plan to retire. The difference determines how many years your savings will compound.

Add your current savings balance — any retirement accounts, pension funds, or investment portfolios you already have. Then enter your planned monthly contribution going forward.

The expected annual return drives the projection. Historically, a diversified equity portfolio has returned around 7% annually after inflation. Use a lower rate (5–6%) for a conservative estimate.

Frequently asked questions

How much money do I need to retire?
A common rule of thumb is the 25× rule: multiply your expected annual retirement spending by 25. For example, if you plan to spend $50,000 per year, you'd need $1.25 million saved. This is based on the 4% safe withdrawal rate from the Trinity Study.
What annual return should I use for retirement planning?
A stock-heavy portfolio (80–100% equities) has historically returned around 7–10% annually before inflation. After inflation, real returns are closer to 5–7%. Most financial planners use 6–7% as a conservative real return assumption for retirement projections.
What is the difference between gross return and inflation-adjusted return?
A gross return of 8% means your investments grow 8% nominally. An inflation-adjusted (real) return accounts for inflation eroding purchasing power. If inflation is 3%, a nominal 8% return equals roughly 5% real return. For retirement planning, using a real return gives a more accurate picture of what your savings will actually buy.
How much should I contribute to retirement each month?
A widely cited guideline is to save 10–15% of your gross income for retirement. If you start later, a higher contribution rate is needed to compensate. The calculator above lets you model different contribution levels to find the monthly savings that reaches your target.
What is compound growth in retirement savings?
Compound growth means your investment returns generate their own returns over time. The longer your money stays invested, the more dramatic the compounding effect. This is why starting early — even with smaller contributions — often results in significantly larger retirement balances than starting later with larger contributions.

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