About the Retirement Calculator
Retirement planning is about accumulating enough savings to replace your income once you stop working. This calculator projects how your current savings and ongoing contributions could grow by retirement, adjusts that figure for inflation so it's in today's dollars, estimates the sustainable monthly income it could provide, and compares it against your target.
How it’s calculated
Projected savings uses compound growth on current savings plus monthly contributions. Inflation-adjusted value = FV ÷ (1 + inflation)^years. Estimated sustainable annual income applies a withdrawal rate (default 4%) to the balance; monthly income is that divided by 12.
Example calculation
At age 35 with $50,000 saved, contributing $600/month until age 65 at a 7% return, you'd accumulate about $1,138,000. Adjusted for 2.5% inflation that's roughly $542,000 in today's dollars, supporting an estimated $1,810/month (today's dollars) at a 4% withdrawal rate.
Frequently asked questions
What is the 4% withdrawal rule?
The 4% rule is a common guideline suggesting you can withdraw about 4% of your retirement savings in the first year, then adjust for inflation, with a reasonable chance the money lasts 30 years. It's a rule of thumb, not a guarantee, and your ideal rate depends on your situation.
Why adjust for inflation?
Inflation reduces what your money can buy over time. A $1,000,000 nest egg decades from now won't stretch as far as $1,000,000 today, so the inflation-adjusted figure gives a more realistic sense of your future purchasing power.
What return should I assume?
Many planners use 6–8% for a growth-oriented portfolio before inflation, shifting more conservative as retirement nears. Use a rate that matches your investment mix and risk tolerance.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.