Finance

Retirement Calculator

Plan your nest egg and retirement income.

Current age

Retirement age

Current savings

Monthly contribution

Annual return (%)

Result

$1,041,867.58

In 35 years

Monthly income (4% rule)

$3,472.89

Years to retirement

Download results

Quick summary

A retirement calculator estimates how much your 401(k), IRA, and other savings will grow by your target retirement age based on current contributions.

How to calculate retirement manually

Project years until retirement and expected annual return.
Compound your current balance: P · (1 + r)^n.
Add the future value of recurring contributions: PMT · ((1 + r)^n − 1) / r.
Compare the total to your retirement income goal (the 4% rule is a common benchmark).

Project your retirement savings from current age to retirement, then estimate sustainable monthly income.

How it works

Compounds current savings + monthly contributions until retirement, then applies the 4% safe-withdrawal rule.

Example

Age 30 → 65, $25K saved + $500/mo at 6.5% → ≈ $930K, ≈ $3,100/mo income.

Expert guide

Building a retirement plan that actually lasts

Retirement planning isn't just about hitting a magic number — it's about building enough that your portfolio can support your lifestyle for 25 to 35 years without earned income.

Maxing out 401(k) and IRA contributions

The U.S. tax code rewards retirement saving aggressively. In 2025, employees can defer up to $23,500 into a traditional or Roth 401(k), with an additional $7,500 catch-up contribution starting at age 50 (and a special $11,250 catch-up for ages 60–63). On top of that, you can contribute up to $7,000 to an IRA ($8,000 if 50+). At the very minimum, contribute enough to your 401(k) to capture your full employer match — that's free money. Roth contributions make the most sense when you expect to be in a higher tax bracket later; traditional contributions help most when you're at peak earnings today.

The 4% rule and safe withdrawal rates

The widely cited 4% rule, originating from the Trinity Study, found that retirees who withdraw 4% of their initial portfolio in year one and adjust for inflation each year afterward have historically had a very high probability of not running out of money over a 30-year retirement. That means a $1,000,000 portfolio supports roughly $40,000 of inflation-adjusted spending per year. Recent research from Morningstar and others suggests a slightly more conservative 3.7% withdrawal rate is safer in today's low-yield environment, especially for early retirees with longer horizons.

Social Security and healthcare planning

Social Security replaces about 40% of pre-retirement income for the average worker. Delaying benefits past your full retirement age (currently 67 for those born after 1960) increases monthly checks by 8% per year up to age 70 — a guaranteed inflation-protected return that's hard to beat. Don't forget Medicare doesn't cover everything: budget $300,000+ per couple for out-of-pocket medical costs in retirement, according to Fidelity's annual Retiree Health Care Cost Estimate.

Frequently asked questions

How much do I need to retire comfortably in the U.S.?

A common target is 25× your annual expenses (the inverse of the 4% rule). If you spend $60,000 a year, aim for $1.5 million. Fidelity suggests having 10× your final salary saved by age 67. Adjust upward if you plan to retire early, live in a high-cost area, or expect significant healthcare needs.

Roth IRA or traditional IRA — which is better?

Choose Roth if you expect to be in a higher tax bracket in retirement (typical for younger or lower-earning workers today). Choose traditional if you're at peak earnings and want the immediate tax deduction. Many savers diversify by holding both, which gives flexibility to manage taxable income in retirement.

What annual return should I assume for retirement projections?

A balanced 60/40 stock-bond portfolio has historically returned about 7% to 8% nominal. For conservative planning, use 5% to 6%, especially if your portfolio shifts toward bonds as you approach retirement age (the 'glide path' used by most target-date funds).

Insight

2025 US retirement contribution limits

IRS-published annual maximums. Catch-up contributions begin at age 50.

Account	Under 50	50+ catch-up
401(k) / 403(b)	$23,500	+$7,500
IRA (Traditional or Roth)	$7,000	+$1,000
SEP-IRA	$70,000	25 % of comp.
HSA (family)	$8,550	+$1,000 at 55
Social Security wage base	$176,100	OASDI cap

Verified by Financial Analyst

Editorial disclaimer

For informational purposes only. Consult a certified financial professional before making financial decisions.

How we project your retirement balance

FV = P(1 + i)^n + C · ((1 + i)^n − 1) / i

We compound your current savings P and your monthly contribution C at the monthly rate i = annual return ÷ 12 over n = (retirement age − current age) × 12 months. Estimated monthly retirement income applies the widely cited 4% safe-withdrawal rule (annual income ≈ 4% of balance, divided by 12).