The Retirement Calculator projects how much your savings will be worth when you retire, estimates the monthly income those savings can generate, and shows whether you’re on track to meet your retirement goals — factoring in inflation.

How to Use This Calculator

1. Enter your Current Age and Retirement Age.
2. Enter your Current Savings and Monthly Contribution.
3. Enter the Expected Annual Return (7% is a common long-term stock market estimate).
4. Enter how many years you expect your retirement to last and the expected Inflation Rate.
5. Click Calculate.

How Much Do You Need to Retire?

A common rule of thumb is the 4% Rule: your retirement savings should be 25× your annual retirement expenses. If you need $50,000/year, you need $1.25 million. This rule is based on historical research showing that a 4% annual withdrawal from a diversified portfolio can last 30+ years.

With longer life expectancies, many financial planners now suggest targeting a 3–3.5% withdrawal rate, implying a target of 29–33× annual expenses.

Social Security Is Not Enough Alone

The average Social Security benefit is approximately $1,907/month ($22,884/year) as of 2024. For most people, this covers only 30–40% of pre-retirement income. Personal retirement savings, 401(k)s, IRAs, and pensions must make up the difference.

Frequently Asked Questions

What return rate should I use?

The US stock market has returned ~10% annually before inflation historically. After accounting for 3% inflation, the real return is ~7%. Use 6–7% for a diversified equity portfolio, 4–5% for a conservative mixed portfolio.

Should I use a Roth or Traditional IRA?

Roth contributions are made with after-tax dollars; withdrawals are tax-free. Traditional contributions are pre-tax; withdrawals are taxed as income. If you expect to be in a higher bracket in retirement, Roth is typically better. If you expect lower bracket, Traditional may be better.