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Retirement Calculator

Project what your retirement savings could grow to, and — more usefully — the monthly income that balance could actually support once inflation is accounted for.

Where you are now

Include every retirement account: 401(k), IRA, and any workplace pension pot.

You

30 years away

Include your employer's match.

What you want

In today's money, before tax. Social Security is not included.

25 years retired

Assumptions

7.0%
2.5%

Real return: 4.39%

Projected savings to retirement

The dashed line shows the same balance in today's purchasing power.

Loading chart

Projected shortfall

To fund $60,000 a year in today's money you would need about $1,925,139 at age 65 — roughly $184,768 more than this projection. Saving an extra $158.00 a month would close the gap. Retiring later or trimming the target income would too.

This is an educational estimate, not financial advice

Results depend entirely on the assumptions above and exclude Social Security, pensions, taxes, healthcare costs and market volatility. Real outcomes will differ. Speak to a qualified financial adviser before making retirement decisions.

What this assumes

  • A constant nominal return during both the saving and the drawdown phase.
  • Retirement income holds its purchasing power, so withdrawals rise with inflation each year.
  • The balance is drawn down to zero at your life expectancy.
  • Social Security, pensions, annuities and taxes are not included.

How the projection works

The calculation runs in two phases. During accumulation, your current savings and monthly contributions compound at your expected return until the retirement age you set. That produces a nominal balance on your retirement date.

Drawdown is then solved entirely in today’s money. The balance is converted into current purchasing power, and a sustainable withdrawal is calculated using the real return — (1 + nominal) ÷ (1 + inflation) − 1 — over the number of months you expect to be retired.

Working in real terms is what makes the income figure honest. A withdrawal that stays flat in nominal dollars loses roughly a third of its buying power over 25 years at 2.5% inflation. The income shown here is designed to buy the same basket of goods in year 25 as in year one.

Why the income figure looks low

A $1.5 million balance sounds like a great deal more than $4,000 a month, and the arithmetic is worth walking through.

First, inflation. $1.5 million in thirty years buys what about $715,000 buys today. Second, that sum has to last decades, not be spent at once. Third, withdrawals must rise each year to keep pace with prices, so the early ones have to be modest enough to leave room.

This is the same reasoning behind the widely cited 4% rule, which came from research into how much a portfolio could sustain across historical 30-year periods without running out. This calculator solves for the same problem directly from your own inputs rather than applying a fixed percentage.

What is not included

The projection covers your own invested savings only. Several significant pieces of most retirements sit outside it.

Social Security
Replaces roughly 30%–40% of pre-retirement income for a median earner. Your own estimate is available from the Social Security Administration.
Pensions and annuities
Guaranteed income streams reduce how much your portfolio has to produce.
Taxes
Withdrawals from traditional accounts are taxable income; Roth withdrawals generally are not. Results here are pre-tax.
Healthcare
Often the largest single expense in retirement, and it tends to rise faster than general inflation.
Home equity
Not counted here, though downsizing is a real source of retirement funding for many households.

The variables you actually control

Of the eight inputs, three do most of the work and two of those are within your control.

Contribution rate is the most direct lever. Retirement age is the most powerful one: delaying by three years adds three years of contributions and compounding while removing three years of withdrawals, which typically shifts the outcome more than any plausible change in investment returns. Expected return is the input people spend the most time on and control the least.

Frequently asked questions

A widely used benchmark is 15% of gross income including any employer match, starting in your twenties. Fidelity’s milestones — one times salary saved by 30, three times by 40, six times by 50 and ten times by 67 — are a useful checkpoint. The figure that matters is the one your own target income requires, which is what this calculator solves for.