Retirement Savings Calculator guide
Enter your age, current savings, monthly contribution, and expected return to project your retirement balance. The calculator adjusts for inflation and turns the result into a yearly income estimate using a safe withdrawal rate.
How the projection is calculated
The calculator runs month by month from your current age to your retirement age. Each month it adds your contribution to the balance, then grows the balance by one month of return: annual return ÷ 12. Contributing at the start of the month matches how payroll 401(k) deferrals work, since money goes in every paycheck rather than at year end.
Three extra numbers turn the raw balance into something you can plan with. Today's dollars divides the final balance by (1 + inflation) raised to the number of years, so you see its purchasing power now. Yearly income applies your withdrawal rate, 4 percent by default, to that inflation-adjusted balance. Monthly income is that figure ÷ 12.
Worked example: 35 years old with $50,000 saved
Age 35, retiring at 65, $50,000 saved, $500 a month, 7 percent return, 2.5 percent inflation. After 30 years the balance is about $1,019,369. You put in $230,000; the other $789,000 or so is growth. Compounding is doing most of the work.
In today's dollars that is about $485,977, because prices roughly double over 30 years at 2.5 percent inflation. At a 4 percent withdrawal rate, it supports about $19,439 a year, or $1,620 a month, in today's money, before tax. Add Social Security on top. That is the honest picture: a seven-figure balance that funds a modest income.
Starting early beats saving more later
Compare two savers at 7 percent. One invests $500 a month from 25 to 65: about $1,320,000. The other waits until 35 and invests twice as much, $1,000 a month, to 65: about $1,227,000. The early saver contributed $240,000; the late saver contributed $360,000 and still ends up behind.
The extreme version: invest $500 a month from 25 to 35, then stop completely and let it grow untouched until 65. That $60,000 becomes roughly $706,500. The first decade of saving is the most valuable decade you will ever have.
Using the 4% rule sensibly
The 4 percent rule comes from William Bengen's 1994 research and the 1998 Trinity study. Both looked at historical US stock and bond returns and found that withdrawing 4 percent in year one, then adjusting for inflation, survived 30-year retirements in nearly every period tested. That is where the "25 times your spending" target comes from, since 1 ÷ 0.04 = 25.
It is a starting point, not a guarantee. Retiring early with a 40-year horizon argues for 3.25 to 3.5 percent. Retiring into a bad market in the first few years, called sequence-of-returns risk, hurts far more than a bad market later. Flexible spending, cutting back in down years, is the most effective protection.
US accounts and 2026 limits
In 2026 you can defer up to $24,500 into a 401(k), 403(b), or most 457 plans, plus an $8,000 catch-up at 50 or older and a larger $11,250 catch-up at ages 60 through 63 under SECURE 2.0. IRA contributions are capped at $7,500, plus $1,100 at 50 and older. An employer match is an instant 50 to 100 percent return on the matched dollars; contribute at least enough to get all of it before anything else.
Taxes matter at withdrawal. Traditional 401(k) and IRA money is taxed as ordinary income when you take it out. Roth money comes out tax-free if the rules are met. A $1,000,000 traditional balance is worth less spendable income than a $1,000,000 Roth balance, which this calculator does not model.
Common mistakes
Using 10 percent returns and no inflation. It makes the numbers look fantastic and leads to undersaving. Either use a nominal return and keep inflation on, or use a real return around 4 to 5 percent and set inflation to 0; do not mix the two.
Ignoring fees. A 1 percent annual fee turns 7 percent into 6 percent. In the example above, that drops the balance from about $1,019,000 to $806,000, over $200,000 lost. Check your fund expense ratios.
Forgetting healthcare before Medicare at 65 and the cost of long retirements. Plan to age 90 or 95, not 80.
How we calculate: sources
Frequently asked questions
How much will I have if I save $500 a month for 30 years?
About $613,500 at a 7% average annual return, compounded monthly, from $180,000 of contributions. In today's dollars, at 2.5% inflation, that is roughly $292,500.
How much do I need to retire?
A common target is 25 times the yearly spending your savings must cover, which comes from the 4% rule. If you need $40,000 a year beyond Social Security, aim for about $1,000,000.
What is the 4% rule?
Withdraw 4% of your portfolio in the first year of retirement, then raise that dollar amount with inflation each year. Research by William Bengen (1994) and the Trinity study found this lasted at least 30 years in almost all historical US market periods.
What rate of return should I use?
Many planners assume 6 to 7% a year for a stock-heavy portfolio and 4 to 5% for a balanced stock-and-bond mix, then subtract inflation separately, as this calculator does. The S&P 500 has averaged roughly 10% a year nominal over the long run, but past returns do not guarantee future ones.
How much can I contribute to a 401(k) in 2026?
$24,500 in employee deferrals. Workers 50 and older can add an $8,000 catch-up, and those aged 60 to 63 get a higher $11,250 catch-up. The IRA limit is $7,500, plus $1,100 catch-up at 50+.
Does this include Social Security or taxes?
No. It projects your savings only. Add your estimated Social Security benefit from ssa.gov to the income figure, and remember that withdrawals from traditional 401(k)s and IRAs are taxed as ordinary income.
Is this financial advice?
No. It is an educational estimate based on a constant return, which real markets never deliver.
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Is $1 million enough to retire?
At a 4% withdrawal rate, $1 million supports about $40,000 a year before tax, rising with inflation. Add Social Security, and for many households outside high-cost cities that covers a comfortable retirement. In today's dollars, $1 million 30 years from now is worth about $477,000 at 2.5% inflation.
How much should I have saved by 40?
Fidelity's widely cited guideline is 3 times your salary by 40, 6 times by 50, 8 times by 60, and 10 times by 67. It is a rule of thumb that assumes you save about 15% of income from age 25.