Retirement Calculator
Calculate retirement savings needs and projections. See required savings, monthly contributions needed, and retirement sustainability using the 4% safe withdrawal rule.
Your age today
When you plan to retire
Total savings today (401k, IRA, etc.)
How much you save each month
Average return rate (6-8% typical)
Monthly income needed in retirement
How long you expect to live (85 typical)
4% Safe Withdrawal Rule
Calculate required savings using the proven 4% rule for sustainable retirement income.
Compound Growth
See how your savings grow with compound interest and regular contributions over time.
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How It Works
4% Safe Withdrawal Rule
Required Savings = (Desired Annual Income) / 0.04
Annual Withdrawal = Savings × 0.04
The 4% rule is a widely-accepted retirement planning guideline. It states that you can withdraw 4% of your retirement portfolio annually, adjusted for inflation, without running out of money over a 30-year retirement. This means you need 25 times your desired annual income saved at retirement.
Future Value Calculation
FV = PV(1 + r)^n + PMT × [((1 + r)^n - 1) / r]
Where:
- FV = Future value (savings at retirement)
- PV = Present value (current savings)
- r = Monthly interest rate (annual return / 12)
- n = Number of months until retirement
- PMT = Monthly contribution
Example Calculation
30-year-old wanting to retire at 65 with $5,000/month income:
- Desired annual income: $5,000 × 12 = $60,000
- Required savings: $60,000 / 0.04 = $1,500,000
- Years to retirement: 65 - 30 = 35 years
- With 7% return and $500/month contribution:
- Projected savings: ~$820,000
- Monthly contribution needed: ~$1,200
Understanding the Results
This calculator projects your retirement savings based on compound growth and compares it to the amount needed for sustainable withdrawals. A sustainable plan means your savings can support your desired income throughout retirement using the 4% rule. If you have a shortfall, consider increasing contributions, working longer, or adjusting your retirement income expectations.
Frequently Asked Questions
What is the 4% safe withdrawal rule?
The 4% rule is a retirement planning guideline that suggests you can safely withdraw 4% of your retirement savings annually without running out of money. This means you need 25 times your desired annual income saved at retirement. For example, if you want $60,000 per year, you need $1,500,000 saved.
How much should I save for retirement?
Using the 4% rule, divide your desired annual retirement income by 0.04. For example, if you want $60,000 per year ($5,000/month), you will need $1,500,000 saved. This calculator helps you determine if your current savings plan will get you there.
What is a realistic annual return rate?
A typical diversified portfolio (stocks and bonds) might average 6-8% annually before inflation over the long term. Conservative estimates use 6%, moderate 7%, and aggressive 8-10%. Keep in mind that actual returns will vary significantly year to year, and past performance doesn't guarantee future results.
How does life expectancy affect retirement planning?
Longer life expectancy means more years in retirement and potentially higher healthcare costs. The average life expectancy in the US is around 78 years, but planning to age 85-90 is common for retirement calculations. Consider your family history and personal health factors when choosing your number.
What if I'm behind on retirement savings?
The calculator shows the monthly contribution needed to meet your goal. If it seems unrealistically high, you have several options: increase your contribution gradually over time, work a few years longer than planned, reduce your expected retirement expenses, or consider part-time work in early retirement. Small increases in contributions made early have a big impact due to compound growth.
Is my data private?
Yes, absolutely! All calculations happen entirely in your browser using JavaScript. Your financial information is never sent to any server, stored in any database, or shared with anyone, ensuring complete privacy and security.