Retirement Calculator

What this retirement calculator does

This calculator projects how much retirement savings you may accumulate by the time you stop working. It combines your current savings, monthly contributions, expected investment return, inflation, and the number of years until retirement.

It also estimates a monthly withdrawal that could be sustained from retirement age through life expectancy, shown in both future dollars and today's purchasing power. The result is a planning estimate, not a guarantee.

How to use this calculator

1. Enter your current age.
2. Enter your planned retirement age and life expectancy.
3. Enter your current retirement savings.
4. Enter the monthly amount you plan to contribute.
5. Enter the expected annual investment return and inflation rate.
6. Click Calculate.

The default example starts at age 35 with $30,000 saved, contributes $500 per month, retires at 67, and plans through age 85 using a 6% return and 3% inflation.

Retirement savings formula

The accumulation phase compounds the current balance and each monthly contribution:

Balance at retirement = P × (1 + r)^n + PMT × ((1 + r)^n − 1) / r

P is the current savings, PMT is the monthly contribution, r is the monthly return, and n is the number of months until retirement.

The withdrawal estimate uses the real return after inflation:

Real return = (1 + investment return) / (1 + inflation) − 1
Monthly withdrawal = Balance × r / (1 − (1 + r)^−n)

The calculator reports the withdrawal in nominal dollars at retirement and in today's dollars.

What the results include

• Balance at retirement: the projected nominal balance.
• In today's dollars: the balance adjusted for inflation.
• Total contributions: the sum of monthly contributions, excluding current savings.
• Total interest: the investment growth above contributions.
• Monthly withdrawal: an estimate using the real return from retirement to life expectancy.
• Withdrawal in today's dollars: the same withdrawal adjusted for inflation.
• Balance by age: yearly contributions, interest, and ending balance.

Assumptions and limitations

The calculator assumes a constant investment return and inflation rate, monthly contributions at the end of each month, and withdrawals at the end of each retirement month. It does not include Social Security, pensions, taxes, required minimum distributions, contribution limits, or investment fees. The reference page also includes income-need and savings-goal calculators; this version focuses on the projection and withdrawal estimate.

Frequently asked questions

How much should I save for retirement?

There is no single answer. It depends on your spending, other income sources, health, and the return you earn. The calculator helps test whether a contribution level produces a balance that supports the withdrawal you want.

Why show both future dollars and today's dollars?

Future dollars show the actual account balance at retirement. Today's dollars divide by inflation so you can compare the amount with current prices and spending.

Does the monthly withdrawal increase with inflation?

The withdrawal is calculated using the real return, so it is expressed in today's purchasing power. The nominal amount at retirement is also shown.

Does this include Social Security or a pension?

No. Those income sources are not modeled. Entering them would reduce the amount you need to withdraw from savings.

Source

References:

• Investor.gov — Compound Interest Calculator
• Social Security Administration — Retirement Benefits

Disclaimer

This calculator is for informational and planning purposes only. It is not financial, tax, or investment advice. Actual returns, inflation, and spending may differ.