Free Retirement Calculator
Enter your current age and savings, when you want to retire, what you save each month, and the return you expect. The calculator projects your nest egg at retirement and splits it into what you contributed and what compounding earned for you.
This free retirement calculator compounds your current savings and monthly contributions at your expected annual return until your retirement age. For example, a 30-year-old with $25,000 saved, contributing $500 a month at a 7 percent return, would have about $1,167,000 at age 65: roughly $235,000 of contributions and $932,000 of growth. Time and compounding do most of the work.
Estimates only. Actual returns vary, inflation reduces purchasing power, and taxes and fees are not included. This is a planning illustration, not financial advice. Consider consulting a fiduciary advisor.
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How retirement projections work
A retirement projection has two engines. Your current savings compound: $25,000 at 7 percent for 35 years becomes about $267,000 without adding a dollar. Your monthly contributions compound too: $500 a month at 7 percent for 35 years grows to about $900,000. Add them and you get roughly $1,167,000, of which only about $235,000 was ever contributed.
The split is the point. In that example, compounding earned nearly four times what was contributed. This is why starting early beats saving more later: contributions made in your 30s compound for 35 years, while contributions in your 50s compound for barely a decade.
The expected return assumption drives everything, so choose it honestly. A 7 percent nominal return is a common planning figure for a stock-heavy portfolio, roughly 10 percent historical stock returns minus inflation and fees. Using 10 percent because it looks better is how projections become fantasies.
Inflation is the silent partner in every projection. A million dollars at 65 sounds rich, but at 3 percent inflation over 35 years it buys what about $355,000 buys today. Run your projected nest egg through an inflation calculator to see it in today's dollars before you celebrate.
Taxes change the spendable number. Traditional 401(k) and IRA balances are pre-tax: withdrawals are taxed as income. Roth balances are post-tax and withdraw tax-free in retirement. A $1 million traditional balance and a $1 million Roth balance are not the same amount of spending money.
Retirement calculator questions
How much do I need to retire?
The classic starting point is 25 times your annual retirement spending, the inverse of the 4 percent rule. If you will spend $60,000 a year and Social Security covers $25,000, your portfolio must cover $35,000, implying a target near $875,000. Your spending, not your salary, sets the number.
What return should I assume for retirement planning?
A stock-heavy portfolio has returned about 10 percent nominal historically, but planners typically use 6 to 7 percent to leave margin for fees, taxes, and bad decades, which is about 4 to 5 percent after inflation. As you near retirement and shift toward bonds, lower the assumption.
Is $1 million enough to retire?
At a 4 percent withdrawal rate, $1 million produces $40,000 a year before taxes. Add Social Security and possibly a pension, and many households cover their spending comfortably. But $1 million in 2045 dollars is not $1 million in today's purchasing power, so always translate the projection into today's dollars.
Should I use a Roth or traditional 401(k)?
Traditional contributions cut your taxes now and are taxed on withdrawal, which favors earners who will face lower rates in retirement. Roth contributions are taxed now but withdraw tax-free, which favors young earners and anyone wanting tax diversification. When uncertain, splitting contributions hedges the bet.