How much do I need to retire?

A common guideline is the 4% rule: your retirement savings should be 25x your annual expenses. If you spend $50,000/year, you need $1.25 million. This allows you to withdraw 4% annually and sustain your portfolio.

How does the retirement calculator estimate monthly income?

Monthly income is calculated using the present value of an annuity formula: payment = balance × r / (1 - (1+r)^(-n)), where r is monthly return rate and n is months in retirement.

What percentage of my salary should I save for retirement?

Financial advisors often recommend saving 10–15% of gross income for retirement. If starting later, aim for 15–20%. Include employer 401k match in that percentage.

Retirement Calculator - Project Your Retirement Savings

Retirement planning is one of the most important financial exercises you can undertake. This calculator models two phases: the accumulation phase — where you save and invest before retirement — and the distribution phase — where your balance funds your living expenses. The monthly income figure uses an annuity formula, meaning it assumes you draw down your balance evenly over your retirement years at the post-retirement rate of return.

The key levers in retirement planning are how much you save each month, how early you start, and the rate of return you earn. Small increases in monthly contributions, made consistently over decades, have an outsized effect due to compound growth. Tax-advantaged accounts like a Roth IRA can dramatically improve outcomes — use the Roth IRA Calculator to see how tax-free growth fits into your plan.

If your employer offers a 401(k) with matching contributions, that match is effectively free money and usually the highest-return investment available to you. The 401K Calculator can help you model the full value of employer matching and project your 401(k) balance alongside this overall retirement picture, so you can build a truly comprehensive retirement strategy.

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For a related calculation, use 401(k) Calculator to calculate 401(k) balance at retirement including employer match contributions and growth. Alternatively, use Roth IRA Calculator to project your Roth IRA balance at retirement with tax-free growth calculations.

Retirement Calculator

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