How this calculator works
This calculator grows your current savings and monthly contributions until retirement, using your expected return minus inflation. That's why results are in today's dollars: $1 million in 35 years won't buy what $1 million buys now.
Your target nest egg uses the 4% rule. To withdraw your desired monthly income each year, you need about 25 times that yearly amount saved.
The formula
Example calculation
You're 30, have $50,000 saved, add $800 a month, expect 7% returns with 2.5% inflation, and want $5,000 a month at 65.
- Target nest egg
- $1,500,000
- Monthly income (4% rule)
- $3,351
- Contribution needed to hit target
- $1,307/mo
- Projected savings at 65
- $1,005,287
Ways to catch up
- Get the full employer match. It's an instant 50% to 100% return on your money.
- Raise contributions by 1% a year. Small annual increases add up without hurting your budget.
- Use catch-up contributions after 50. The IRS allows extra contributions to 401(k)s and IRAs.
- Work a little longer. Each extra year adds savings, adds growth and shortens retirement.
Frequently asked questions
How much do I need to retire?
A common guide is 25 times your yearly spending in retirement. The right number depends on Social Security, pensions and your lifestyle.
Does this include Social Security?
No. Subtract your expected Social Security benefit from your income goal for a more accurate target.
What return should I assume?
Many planners use 6% to 7% for a stock-heavy portfolio and lower for conservative ones. Returns aren’t guaranteed.