Retirement Calculator

Calculate retirement savings and estimated monthly income

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About This Calculator

The Retirement Calculator helps you plan for retirement by projecting your retirement savings and estimating your monthly retirement income. It considers your current age, retirement age, current savings, monthly contributions, and expected returns to help you plan for a secure retirement.

How It Works

  • 1

    Enter your current age.

  • 2

    Input your planned retirement age.

  • 3

    Specify your current retirement savings.

  • 4

    Enter your monthly contribution amount.

  • 5

    Input your expected annual return percentage.

  • 6

    The calculator projects retirement savings and estimated monthly income using the 4% rule.

Formula Explanation

Retirement Savings = Current Savings × (1+r)^n + Monthly Contributions × [((1+r)^n - 1) / r]

This calculates the future value of your retirement savings with compound growth and regular contributions.

Monthly Income (4% Rule) = Retirement Savings × 0.04 / 12

The 4% rule suggests withdrawing 4% of your retirement savings annually (divided by 12 for monthly) as a sustainable withdrawal rate.

Tips

  • Start saving for retirement as early as possible to maximize compound growth.

  • Aim to save 15-20% of your income for retirement.

  • Take advantage of employer 401(k) matching if available.

  • Consider inflation when planning retirement needs.

  • The 4% rule is a guideline - actual needs may vary.

  • Review and adjust your retirement plan regularly.

Common Uses

Retirement Planning

Project how much you will have saved by retirement age.

Contribution Planning

Determine how much to contribute monthly to reach retirement goals.

Income Estimation

Estimate monthly retirement income based on savings.

Goal Setting

Set realistic retirement savings goals based on your timeline.

Frequently Asked Questions

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