The math of retirement is simple but unforgiving — you need 25 times your annual expenses saved to retire safely using the 4% withdrawal rule. If you spend $60,000 per year, you need $1.5 million. If you spend $100,000, you need $2.5 million. Yet the median retirement savings for Americans aged 55-64 is only $134,000 — enough to fund about 2-3 years of retirement. This calculator projects your retirement savings growth based on current balance, contributions, expected returns, and retirement age to show whether you are on track or need to adjust course.
Retirement Savings Calculator
Retirement Savings by Starting Age
$500/month contribution, 7% annual return, retiring at 65
| Starting Age | Years Investing | Total Contributed | Projected Balance | Growth |
|---|---|---|---|---|
| 25 | 40 years | $240,000 | $1,197,811 | $957,811 |
| 30 | 35 years | $210,000 | $830,421 | $620,421 |
| 35 | 30 years | $180,000 | $567,452 | $387,452 |
| 40 | 25 years | $150,000 | $380,613 | $230,613 |
| 45 | 20 years | $120,000 | $248,033 | $128,033 |
| 50 | 15 years | $90,000 | $153,720 | $63,720 |
| 55 | 10 years | $60,000 | $86,543 | $26,543 |
How to Use This Calculator
- Enter your current age and target retirement age
- Add your current retirement savings across all accounts — 401(k), IRA, Roth IRA, brokerage
- Set your monthly or annual contribution amount
- Choose an expected return rate — 7% is commonly used for a stock-heavy portfolio before inflation
- Compare your projected savings against your estimated annual retirement expenses multiplied by 25
How It Works
This retirement savings calculator projects how your savings will grow using compound interest, accounting for your current balance, regular contributions, employer match, and expected investment returns.
The basic rule:
- Calculates compound growth on your existing savings at the expected annual return rate
- Adds monthly contributions (yours + employer match) throughout the savings period
- Each contribution earns compound returns from the date it's made until retirement
- Uses the 4% rule to estimate sustainable monthly retirement income from the final balance
The projection assumes a constant rate of return, which won't happen in reality — actual returns will vary year to year. However, long-term averages provide a reasonable planning estimate. The S&P 500 has averaged about 10% nominal (7% after inflation) over long periods.
Tips & Considerations
- Employer 401(k) match is free money. If your employer matches 50% up to 6% of salary, contributing less than 6% is leaving guaranteed 50% returns on the table.
- The 4% rule says you can withdraw 4% of your portfolio in year one and adjust for inflation each year after, with a very high probability of not running out over 30 years.
- Healthcare costs in retirement average $315,000 per couple according to Fidelity. Medicare does not cover everything, and it does not start until 65.
- Social Security replaces about 40% of pre-retirement income for average earners. It is a supplement, not a retirement plan.
Frequently Asked Questions
How much should I save for retirement?
A common rule of thumb is to save 15% of your gross income (including employer match). Fidelity suggests having 1× your salary saved by 30, 3× by 40, 6× by 50, 8× by 60, and 10× by 67. The exact amount depends on your desired retirement lifestyle.
What rate of return should I assume?
For a diversified stock/bond portfolio, 6-8% is a reasonable long-term assumption before inflation (or 4-5% after inflation). Use 7% for a moderate stock-heavy portfolio, 5-6% for a balanced portfolio, or 8-10% for an aggressive all-stock portfolio.
Should I include employer match in my calculations?
Absolutely. An employer match is free money. If your employer matches 50% up to 6% of your salary, that's an additional 3% of your salary contributed each year. Always contribute at least enough to get the full employer match.
What is the 4% rule for retirement income?
The 4% rule says you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year. A $1 million portfolio would provide about $40,000/year or $3,333/month in retirement income with a high probability of lasting 30 years.
How does starting age affect retirement savings?
Starting early is incredibly powerful due to compound interest. Someone who saves $500/month starting at 25 will have about $1.2M at 65 (at 7% return). Starting at 35 with the same amount yields about $567K — less than half — despite only missing 10 years.
Should I use pre-tax or post-tax return?
For tax-advantaged accounts (401k, IRA), use the pre-tax return since growth is tax-deferred. For Roth accounts, the growth is tax-free. For taxable accounts, reduce the return by your expected tax rate on gains and dividends.