Project how much you could have saved by retirement from your current balance and monthly contributions, and estimate the yearly income it could support using the 4% guideline.
How the retirement calculator works
The calculator grows your current savings and monthly contributions at your expected return until retirement age, compounding monthly. It then estimates the income your nest egg could support with a sustainable withdrawal rate, and converts the result into today's dollars so you can judge what it will really buy.
The 4% guideline
A widely used rule of thumb says that withdrawing about 4% of your savings in the first year of retirement, then adjusting for inflation, has historically lasted around 30 years for a balanced portfolio. It is a starting point, not a guarantee. Some planners prefer 3% to 3.5% for early retirees or longer lifespans.
Sustainable yearly income ≈ Savings at retirement × withdrawal rate
Worked example
At 35, you have $50,000 saved and contribute $500 a month. With a 7% average return, by 65 you could have about $1,015,800.
- At a 4% withdrawal rate, that supports about $40,632 a year ($3,386 a month).
- With 2.5% yearly inflation, $1,015,800 in 30 years buys roughly what $484,300 buys today.
Add Social Security or a pension to estimate your total retirement income.
How to boost your retirement savings
- Capture the full employer match. It is an instant return on your money.
- Increase contributions by 1% each year, or whenever you get a raise.
- Keep investment fees low. A 1% difference in fees can cost a large share of your final balance.
- Start now. Time is the strongest lever. See the compound interest calculator.
Frequently asked questions
How much do I need to retire?
A common estimate is 70% to 80% of your pre-retirement income each year. Divide the yearly amount you need from savings by 0.04 for a rough target.
What return should I assume?
Many people use 5% to 7% for a diversified, long-term portfolio. Try a lower rate to stress-test your plan.
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Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.