Retirement Calculator
Plan your financial freedom. Visualize how your savings can grow over time with compound interest.
It's never too early to start. Use our **Retirement Calculator** to visualize the incredible power of compound interest and create a roadmap to your dream retirement.
Retirement Goals
Projected Savings at Age 65
Breakdown
What is Retirement Calculator?
Understanding Retirement Planning
Retirement isn't an age; it's a financial number. It's the point where your investments generate enough passive income to cover your life expenses without you needing to work. Reaching that number requires consistency, time, and math.
Who Should Use This?
- Young Professionals: To see how starting at 25 vs 30 affects your millionaire status.
- Mid-Career Earners: To adjust contributions and ensure you are on track for age 65.
- FIRE Aspirants: Exploring "Financial Independence, Retire Early" scenarios.
Why This Tool is Useful
Most people underestimate how much they need to save. This calculator shines a light on the **"Gap"**—the difference between what you *think* you'll have and what the math says. It allows you to simulate "Catch Up" scenarios by increasing monthly contributions.
When to Use It
Check this tool at least once a year or whenever you get a raise, change jobs, or adjust your 401(k) contribution percentage.
How to Use This Calculator
Fill in the fields to generate your projection:
- Current Age & Retirement Age: Define your timeline. The longer the time, the more "heavy lifting" compound interest does for you.
- Current Savings: The total balance of your 401(k), IRAs, and brokerage accounts today.
- Monthly Contribution: How much new money you add each month. (Don't forget to include employer matching!)
- Expected Return (%): The key variable.
- Conservative: 4-5% (Bonds/Cash heavy)
- Balanced: 6-7% (Standard Portfolio)
- Aggressive: 8-10% (S&P 500 Historical Average)
The 4% Rule (FIRE)
How much do you need? A common rule of thumb is the 4% Rule. It states that if you withdraw 4% of your portfolio annually, it should last 30 years.
Target Number = Annual Expenses × 25
(e.g., spending $60k/year requires a $1.5 Million portfolio).
Formula & Calculation
The calculator combines principal growth with the **Future Value of a Series** formula for monthly contributions.
Where:
- FV = Future Value (from contributions)
- P = Monthly Contribution
- r = Monthly Interest Rate (Annual Rate ÷ 12)
- n = Total Months (Years × 12)
Example Calculation
Example 1: The Early Bird (Starting at 25)
Scenario: You are 25. You save $500/month until age 65 (40 years). Return is 7%.
Compound Growth = $1.06 Million
Result: You become a millionaire! Your $240k investment grew to over $1.3 Million thanks to 40 years of compounding.
Example 2: The Procrastinator (Starting at 45)
Scenario: You wait until 45. You try to catch up by saving $1,000/month (Double!) until age 65 (20 years). Same 7% return.
Compound Growth = $270,000
Result: You end up with only $510,000. Even though you invested the EXACT same amount of cash ($240k), starting 20 years late cost you nearly $800,000 in lost interest!
Explanation of Results
- Total Contributions: The actual cash you put in from your paycheck.
- Interest Earned: The "free money" generated by the market. In the Early Bird example, interest accounted for 80% of the final wealth!
- Growth Chart: Watch how the curve steepens over time. The last 10 years usually generate more wealth than the first 30 combined.
Reference Tables
The Cost of Waiting (To reach $1 Million by 65)
See how the required monthly savings skyrocket if you delay starting.
| Starting Age | Months to Save | Required Monthly Savings (7% Return) |
|---|---|---|
| 25 Years Old | 480 | $381 / month |
| 35 Years Old | 360 | $820 / month |
| 45 Years Old | 240 | $1,920 / month |
| 55 Years Old | 120 | $5,778 / month |
Why use this calculator?
- Motivation: Seeing the numbers is the best wake-up call to stop spending and start saving.
- Strategy: Experiment with "What if?" scenarios. "What if I work 2 more years?" "What if I get 1% better return?"
- Confidence: Remove the anxiety of the unknown and replace it with a calculated plan.
Frequently Asked Questions
Frequently Asked Questions
How much should I contribute to my 401(k)?
At a minimum, contribute enough to get your **employer match**. If they match 3%, and you put in 3%, that is an immediate 100% return on your money. Don't leave free money on the table!
Roth IRA vs Traditional IRA?
Roth: You pay taxes now, but withdrawals are tax-free later (great for young people). Traditional: You get a tax deduction now, but pay taxes on withdrawals later (great for high earners). Diversifying with both is often smart.
What about inflation?
Inflation (avg 3%) erodes purchasing power. A million dollars in 30 years won't buy what it does today. To account for this, use a "Real Return" rate (e.g., if market does 8%, enter 5% in the calculator to see today's purchasing power).
When can I withdraw interest?
Generally, accessing retirement accounts before age 59½ triggers a 10% penalty plus taxes. However, there are exceptions (like Roth Principal withdrawals) and strategies (Wait-to-Retire) for early retirees.
Key Terms & Definitions
Disclaimer: This calculator creates a simulation based on your inputs. It does not guarantee future market performance. Investments involve risk and can lose value.
Last Updated: January 2026