Retirement Calculator

Project how much you'll have at retirement and whether you're on track to meet your goals. Enter your current age, savings, contributions, and expected return to see your retirement outlook.

Retirement Calculator

How Much Do You Need to Retire?

The most common rule of thumb is the 4% Rule: your retirement savings should be 25× your annual expenses. If you need $60,000/year, you need $1.5 million saved. This rule assumes a 60/40 stock/bond portfolio and a 30-year retirement horizon.

Another approach is replacing 70–80% of your pre-retirement income. Social Security typically covers 30–40% of pre-retirement income, so personal savings must bridge the rest.

Retirement Savings Milestones

AgeSavings Target (Fidelity guideline)
301× annual salary
403× annual salary
506× annual salary
608× annual salary
6710× annual salary

Frequently Asked Questions

What is the 4% rule?+
The 4% rule states you can safely withdraw 4% of your portfolio in year one of retirement, then adjust for inflation annually, with a high probability of not running out of money over a 30-year period.
How much should I save for retirement?+
A common guideline is to save 15% of your income for retirement starting in your 20s. This includes any employer match. The earlier you start, the less you need to save each month due to compounding.

Related Calculators

Investment Calculator Compound Interest Inflation Calculator Social Security 401(k) Calculator

How Investment Growth Is Calculated

Investment accounts grow through compound interest — your returns earn returns. Unlike simple interest (where you only earn on the principal), compounding means that every dollar of gain becomes part of the base that earns the next round of gains. The longer the time horizon, the more dramatic the effect.

The Compound Interest Formula

A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) − 1) / (r/n)]

How to Use This Calculator

  1. Enter your starting balance (or $0 if starting from scratch)
  2. Enter your expected annual return rate (7–10% is a common long-term stock market assumption)
  3. Enter your monthly contribution
  4. Set the number of years until you plan to withdraw
  5. Click Calculate to see projected balance and growth breakdown

The Power of Starting Early

Investing $300/month starting at age 25 at 8% annual return gives you ~$1,006,000 by age 65.

Starting at 35 with the same $300/month: ~$440,000 — less than half, even though you only missed 10 years.

Those 10 years cost you $566,000 in future value, even though the missed contributions were only $36,000. That gap is the compounding effect in action.

Important Caveats

Investment returns are not guaranteed. Stock market returns vary year to year — 8% is a long-term historical average for diversified index funds, not a promise. Tax-advantaged accounts (401k, IRA, Roth IRA) shelter gains from annual taxation, which can significantly increase real returns compared to a taxable brokerage account.