Retirement Calculator

Project your retirement savings in today’s dollars, the nest egg your income goal needs, and the monthly savings to get there.

Educational estimate, not financial advice. Lenders, card issuers and tax authorities calculate with their own terms, fees and rounding.

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$
%
Planning default, before inflation. Not a forecast.
%
Planning default.
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On top of Social Security or pensions.
% / yr
Rule-of-thumb planning default, not a guarantee.
Projected savings at retirement
$508,582 in today’s dollars
In future (nominal) dollars
$1,066,785 in 30 years
Target nest egg
$1,500,000 in today’s dollars ($3,146,351 then)
Income your savings could support
$20,343 a year in today’s dollars
Monthly saving needed
$2,934 a month to reach the target

By OrcaCalc Editorial Team · Reviewed by OrcaCalc Review Desk · Last updated

A retirement plan comes down to three numbers: what your savings will grow to, how big a nest egg your income goal needs, and how much you must save each month to close any gap. With the defaults (age 35, retiring at 65, $50,000 saved, $800 a month, a 6% return and 2.5% inflation) you would have about $1.07 million in 30 years, worth about $509,000 in today's dollars. Drawing $60,000 a year at a 4% withdrawal rate needs $1.5 million in today's money, so the plan falls short. Saving about $2,934 a month would close the gap.

Showing results in today's dollars matters: a million dollars in 30 years buys far less than a million today. The calculator uses the same compound growth as Investor.gov's compound interest calculator and removes inflation at the rate you enter.

How to use the retirement calculator

  1. Enter your current age, target retirement age and current retirement savings.
  2. Enter your monthly contribution, including any employer match.
  3. Enter an expected annual return and inflation rate. The defaults are planning assumptions only; use conservative figures.
  4. Enter the yearly income you want from savings, in today’s dollars, after subtracting expected Social Security or pension income.
  5. Enter a withdrawal rate. 4% is a common rule of thumb; lower is more conservative.

Formula

Monthly return i = (1 + annual return)1/12 − 1  ·  n = years × 12
Savings at retirement = S(1 + i)n + C × ((1 + i)n − 1) ÷ i
In today's dollars = Savings ÷ (1 + inflation)years
Target nest egg = Desired income ÷ withdrawal rate  ·  Needed C = (Target × (1 + inflation)years − S(1 + i)n) × i ÷ ((1 + i)n − 1)

Worked example

Age 35 to 65 (30 years), $50,000 saved, $800 a month, 6% return, 2.5% inflation, $60,000 a year wanted at a 4% withdrawal rate.

  1. $50,000 grows to 50,000 × 1.0630 = $287,175.
  2. Contributions: 800 × ((1 + i)360 − 1) ÷ i with i = 0.4868% ≈ $779,610.
  3. Total ≈ $1,066,785 nominal; ÷ 1.02530 (2.0976) ≈ $508,582 in today's dollars.
  4. Target: $60,000 ÷ 0.04 = $1,500,000 today, or about $3,146,351 in 30 years.
  5. Monthly saving needed: ($3,146,351 − $287,175) × i ÷ ((1 + i)360 − 1) ≈ $2,934.

Reading the result

Small changes compound over decades. Retiring three years later, saving a few hundred dollars more, or needing less income from savings each shift the result a lot, so try several scenarios. A withdrawal rate is not a promise. Market returns in the first years of retirement, fees, taxes and how long you live all affect whether savings last. Subtract expected Social Security from your income goal before entering it; your Social Security statement shows your estimated benefit.

For a simpler projection without inflation, use the compound interest calculator. To convert any future amount to today's dollars, use the inflation calculator.

Caveats and assumptions

  • Returns, inflation and the 4% withdrawal rate are planning assumptions, not predictions or guarantees.
  • Taxes on withdrawals, account fees and required minimum distributions are not modelled.
  • Contributions are assumed constant; most people’s contributions rise with pay.
  • This is an educational estimate, not personalized financial advice.

Frequently asked questions

How much do I need to retire?

One rule of thumb divides the yearly income you want from savings by a withdrawal rate. $60,000 at 4% gives $1.5 million in today’s dollars. Your real number depends on spending, other income, taxes and how long retirement lasts.

What is the 4% rule?

A widely used planning rule of thumb: withdraw about 4% of savings in the first year of retirement, then adjust that amount for inflation. It is a shortcut, not a guarantee, and a lower rate is more conservative for a long retirement.

Why show results in today’s dollars?

Inflation reduces what money buys. Converting the future balance to today’s dollars tells you what lifestyle it could actually fund.

What return should I assume?

Use a conservative long-run figure for your mix of investments, after fees. The 6% default is only a planning assumption.

Sources

This calculator gives estimates for planning and education only. It is not financial, tax or investment advice. Your lender, card issuer, employer or tax authority uses its own terms, fees and rounding, so confirm figures with them before deciding. See our disclaimer and how we build and check calculators.