Retirement Savings Calculator

Your retirement details

Current Age

Retirement Age

Current Savings ($)

Monthly Contribution ($)

Expected Annual Return 7%

Retirement tips

💼Always contribute at least enough to get your full employer 401(k) match — it's free money.
📈Increasing your contribution by just 1% per year can add hundreds of thousands by retirement.
🔄A diversified index fund portfolio has historically returned 7–10% annually over long periods.

Are you on track for retirement? Here is how to find out.

Retirement planning suffers from a common problem: the goal is so far in the future that it feels abstract, while the sacrifice — saving money today — is immediate and tangible. A retirement calculator bridges that gap by translating your current savings rate into a projected future balance, making the abstract concrete.

The results can be motivating or alarming, and both reactions are useful. If you are ahead of schedule, you have the confidence to redirect some savings toward shorter-term goals. If you are behind, you have time to course-correct — and the calculator can show you exactly how much more you need to save each month to close the gap.

How much do you need to retire?

The most widely used benchmark is the 4% rule: in retirement, you can withdraw 4% of your portfolio in the first year, then adjust for inflation annually, with a high historical probability of not running out of money over a 30-year retirement. That means your retirement number is 25 times your expected annual spending.

If you expect to spend $60,000/year in retirement, you need a $1.5 million portfolio. If you expect $80,000/year, you need $2 million. These numbers sound large but are achievable through consistent contributions over a long career, especially with employer matching and tax-advantaged accounts.

Example: Starting at 25 vs. 35 with the same monthly contribution

Saving $500/month from age 25 to 65 at 7% annual return produces approximately $1.2 million. Starting the same $500/month contribution at 35 instead produces approximately $590,000 — less than half, for starting only 10 years later. This is the power of compounding time, not just compounding interest.

Contribution limits and account types for 2024–25

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401(k) / 403(b) / 457
Annual contribution limit: $23,000 in 2024 ($30,500 if age 50+). Many employers match contributions — commonly 50–100% of the first 3–6% of salary. Always contribute at least enough to capture the full match before directing money elsewhere.
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Traditional IRA
Annual limit: $7,000 ($8,000 if 50+), shared with Roth IRA. Contributions may be tax-deductible depending on income and whether you have a workplace plan. Growth is tax-deferred; withdrawals in retirement are taxed as ordinary income.
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Roth IRA
Same $7,000/$8,000 annual limit. Contributions are made with after-tax dollars, but growth and qualified withdrawals are completely tax-free. Income limits apply: phaseout begins at $146,000 (single) and $230,000 (married) for 2024.
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SEP-IRA / Solo 401(k)
For self-employed individuals and small business owners. SEP-IRA allows contributions up to 25% of net self-employment income, up to $69,000 in 2024. Solo 401(k) has similar limits with the ability to make both employee and employer contributions.

Frequently asked questions

The US stock market (S&P 500) has historically returned approximately 10% annually before inflation — about 7% after inflation. For a diversified portfolio with bonds, 6–7% nominal (4–5% real) is a reasonable planning assumption. Using 7% for long-horizon projections is common and defensible.

You can claim Social Security as early as age 62 (at a reduced benefit) or as late as 70 (at the maximum benefit). Each year you delay past 62 increases your benefit by 5–8%. For most people with good health, delaying to 70 maximizes lifetime benefits — but the break-even point is typically around age 80.

A target-date fund (e.g., 'Vanguard Target Retirement 2055') automatically adjusts your asset allocation over time — starting with a higher stock percentage when you are young and gradually shifting to bonds as you approach retirement. They are a simple, low-maintenance default for 401(k) participants who do not want to actively manage their allocation.

Inflation erodes purchasing power over time. At 3% annual inflation, $1 today buys about $0.55 worth of goods in 20 years. Your retirement savings need to grow faster than inflation to maintain real purchasing power. This is why keeping a significant portion of retirement savings in equities — even in early retirement — is important.

Required Minimum Distributions (RMDs) require you to begin withdrawing a minimum amount from traditional IRAs and 401(k)s starting at age 73 (as of 2023 SECURE 2.0 legislation). Failure to take your RMD results in a 25% excise tax on the amount not withdrawn. Roth IRAs are exempt from RMDs during the owner's lifetime.

The standard rule is that withdrawals from traditional retirement accounts before age 59½ incur a 10% early withdrawal penalty plus income taxes. However, the Rule of 55 allows penalty-free withdrawals from a 401(k) if you separate from service at 55 or older. Substantially Equal Periodic Payments (SEPP / 72(t)) allow penalty-free early withdrawals under a specific schedule.