Retirement Calculator

Plan your retirement savings and calculate how much you'll have when you retire based on monthly contributions and expected returns.

Current Age

Retirement Age

Current Retirement Savings ($)

Monthly Contribution ($)

Expected Annual Return (%)

Projected Retirement Savings

Total Contributions: $0

Investment Gains: $0

Years Until Retirement: 0

How to Plan for Retirement

Retirement planning is one of the most important financial goals. Our calculator helps you estimate how much money you'll have saved by retirement age based on your current savings, monthly contributions, and expected investment returns.

The Power of Compound Interest

The earlier you start saving for retirement, the more time your money has to grow through compound interest. Even small monthly contributions can grow significantly over 30-40 years.

How Much Do You Need for Retirement?

Financial experts recommend having 10-12 times your annual income saved by retirement age. The 4% rule suggests you can withdraw 4% of your retirement savings annually without running out of money.

Tips for Maximizing Retirement Savings

Start Early: Time is your biggest advantage due to compound interest
Maximize Employer Match: Always contribute enough to get full company 401k match - it's free money
Increase Contributions: Raise contributions by 1% each year or when you get a raise
Diversify Investments: Spread risk across stocks, bonds, and other assets
Avoid Early Withdrawals: Penalties and lost growth make early withdrawals very expensive

Retirement Account Types

401(k) Plans

Employer-sponsored retirement plans with pre-tax contributions. Many employers offer matching contributions up to a certain percentage. Contribution limit: $23,000 in 2025 (or $30,000 if age 50+).

Traditional IRA

Individual Retirement Account with tax-deductible contributions. Withdrawals in retirement are taxed as income. Contribution limit: $7,000 in 2025 (or $8,000 if age 50+).

Roth IRA

After-tax contributions but tax-free withdrawals in retirement. Income limits apply. Same contribution limits as Traditional IRA. Great for younger savers expecting higher future tax rates.

Expected Return Rates

Historical stock market returns average 10% annually, but 7-8% is more conservative accounting for inflation. Bonds typically return 4-5%. A balanced portfolio might target 6-7% returns.

Frequently Asked Questions

How much should I save for retirement?

Aim to save 10-15% of your gross income for retirement. If you start in your 20s, 10% may be sufficient. If starting later, you'll need to save more - potentially 15-20% or higher to catch up.

What is the 4% rule?

The 4% rule suggests withdrawing 4% of your retirement savings in the first year, then adjusting for inflation each year. Historically, this approach makes savings last 30+ years. For example, $1 million would provide $40,000 annually.

Is it too late to start saving at 40?

It's never too late! While starting early is ideal, you can still build significant savings by increasing contribution rates and working a few extra years. Focus on maximizing contributions and employer matches.

Should I pay off debt or save for retirement?

Do both if possible. Always contribute enough to get employer 401k match (it's free money), then focus on high-interest debt (credit cards). For low-interest debt (mortgage), you can balance paying it down with retirement savings.

What's a realistic retirement savings goal?

A common guideline: save 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by retirement at 67. These are guidelines - your needs depend on desired lifestyle and expected expenses.

How does inflation affect retirement savings?

Inflation reduces purchasing power over time. At 3% inflation, $100 today will only buy $55 worth of goods in 20 years. This is why our calculator uses expected returns (which typically account for inflation) rather than nominal returns.

Can I retire early?

Yes, but you'll need higher savings rates and careful planning. Consider: healthcare costs before Medicare (age 65), potential penalties for early 401k withdrawals (before 59.5), and longer retirement period requiring more savings.

What if I change jobs frequently?

You have options when leaving a job: keep money in old 401k, roll over to new employer's 401k, or roll over to an IRA. IRAs often offer more investment options and lower fees. Never cash out - you'll pay taxes and penalties plus lose growth potential.