See how your savings grow to retirement. Adjust contributions, return rate, and withdrawal rate for an instant projection.
Annual: $9,600/year
Historical S&P 500 avg: ~10% nominal, ~7% real (inflation-adjusted)
4% is the traditional 'safe withdrawal rate'. 3.5% is more conservative.
The Retirement Savings Calculator projects how your current nest egg and ongoing monthly contributions will grow by the time you retire. It combines your existing balance, your savings rate, your current age and target retirement age, and an expected annual return into a single future value — then estimates the monthly income that balance could support.
Use it to test 'what if' scenarios: bumping your monthly contribution by $100, retiring two years later, or assuming a more conservative return. Small changes today compound into large differences decades from now, and this tool makes those differences visible instantly.
FV = PV(1+r)^n + PMT × [((1+r)^n − 1) / r]Future value (FV) is the sum of two pieces: your current savings growing on their own, plus a stream of monthly contributions growing as an annuity. Both pieces compound at the same assumed rate of return.
Example 1: Starting at 32 with $45,000 saved
A 32-year-old with $45,000 saved, contributing $800/month, retiring at 65 (33 years), assuming a 7% annual return.
Projected nest egg ≈ $1,480,000 — supporting roughly $4,930/month in retirement income at a 4% withdrawal rate.
Example 2: Late starter at 45
A 45-year-old with $80,000 saved, contributing $1,200/month, retiring at 67 (22 years), at a 7% return.
Projected nest egg ≈ $920,000 — about $3,070/month at a 4% withdrawal rate, illustrating why starting later requires higher contributions to catch up.
Example 3: The cost of waiting 10 years
Compare a 25-year-old vs. a 35-year-old, both contributing $500/month at 7% until age 65 (40 vs. 30 years).
The 25-year-old ends with roughly $1,200,000, while the 35-year-old ends with roughly $590,000 — about half — purely from losing 10 years of compounding.
Methodology
Future value: FV = PV·(1+r)^n + PMT·[(1+r)^n − 1]/r. Monthly contributions modeled as ordinary annuity. Withdrawal uses specified percentage of accumulated balance at retirement.
A common target is 25× your expected annual expenses (derived from the 4% withdrawal rule). If you expect to spend $60,000/year in retirement, you'd need $1.5M. This calculator projects whether your current savings trajectory reaches that goal.
Research by William Bengen (1994) and the 'Trinity Study' found that a diversified portfolio could sustain 4% annual withdrawals (inflation-adjusted) over 30 years with high historical reliability. Some planners now recommend 3.5% given lower expected returns.
Traditional accounts (401k, IRA) reduce taxable income now but withdrawals are taxed. Roth accounts use after-tax money but grow and withdraw tax-free. General guidance: traditional if you expect to be in a lower tax bracket in retirement; Roth if you expect higher brackets or want tax diversification.
Disclaimer: Calculations are for informational purposes only and do not constitute professional financial advice. Please consult with a certified professional before making financial decisions.