How much should I save for retirement?

A common rule of thumb is to save 15% of your gross income for retirement, including any employer match. The "4% rule" suggests that to fund a comfortable retirement, you need roughly 25 times your annual expenses saved (because withdrawing 4% per year from a diversified portfolio has historically been sustainable for 30+ years). For example, if you need $60,000/year in retirement, you'd need approximately $1.5 million saved. However, individual needs vary significantly based on lifestyle, health, Social Security income, and retirement age.

What annual return should I use?

The US stock market (S&P 500) has historically returned approximately 7% annually after inflation over long periods. A diversified portfolio of stocks and bonds might average 5–7%. For conservative estimates, many financial planners use 5–6% to account for fees, taxes, and sequence-of-returns risk. For near-term projections (under 10 years), use a more conservative rate because there's less time to recover from market downturns. Always run scenarios with both optimistic and conservative return assumptions.

What is the impact of starting early?

Starting early is the single most powerful retirement planning lever. Due to compound interest, money invested at age 25 has 40 years to grow before retirement at 65, while money invested at 45 has only 20 years. A $5,000 annual contribution at 7% return starting at age 25 grows to about $1.1 million by age 65. The same contribution starting at age 35 grows to only $540,000 — less than half as much, for the same total contributions.

What about Social Security?

This calculator focuses on personal savings and investments and does not include Social Security income estimates. Social Security benefits are an important supplement to personal retirement savings — for most Americans, Social Security replaces 30–40% of pre-retirement income. You can get a personalized Social Security estimate by creating an account at ssa.gov. Factor your projected Social Security income into your overall retirement income plan alongside this calculator's output.

Retirement Savings Calculator

Plan your retirement and see if you're on track to meet your goals

Current Age

18 yr80 yr

Retirement Age

31 yr85 yr

Current Retirement Savings

$0$2,000,000

Monthly Contribution

$0$10,000

Expected Annual Return

1%15%

Expected Inflation Rate

0%10%

Desired Annual Retirement Income

$10,000$300,000

Projected Savings

$1,475,835

at age 65

Inflation-Adjusted

$524,487

in today's dollars

Monthly Income (4% Rule)

$4,919

$1,748/mo in today's dollars

Years to Retirement

Total Contributions

$260,000

Investment Growth

$1,215,835

⚠️

Behind Target

You may need an additional $2,744,959 to generate $60,000/year using the 4% rule. Consider increasing contributions or delaying retirement.

Savings Breakdown

Contributions: $260,000 (17.6%)

Growth: $1,215,835 (82.4%)

Savings Growth Over Time

Nominal Balance

Inflation-Adjusted

Total Contributions

The 4% Rule

The 4% rule suggests you can withdraw 4% of your retirement savings annually (adjusted for inflation) without running out of money over a 30-year retirement. For your projected savings of $1,475,835, that's $59,033/year or $4,919/month.

Free Retirement Savings Calculator

Plan your retirement with confidence using our free retirement calculator. Enter your current age, target retirement age, current savings, monthly contribution, and expected annual return to see how much you'll have saved by retirement. The calculator uses compound interest math to project your portfolio's growth, showing you whether you're on track to meet your retirement goals and how small changes in contribution rate or return rate affect your final balance. Retirement planning is one of the most important financial exercises you can do — small changes made decades before retirement can have enormous effects on your final nest egg. Whether you're just starting your career or accelerating savings in your peak earning years, this tool gives you a clear picture of where you stand. Use it to model different scenarios: what if you retire 5 years earlier? What if you increase your monthly contribution by $200? What return rate do you need to reach your target?

How to Use

Enter your current age and target retirement age.
Input your current retirement savings balance.
Set your planned monthly contribution amount.
Adjust the expected annual return and inflation rates.
Enter your desired annual retirement income.
Review your projection, gap analysis, and growth chart to see if you're on track.

FAQ

How much should I save for retirement?: A common rule of thumb is to save 15% of your gross income for retirement, including any employer match. The "4% rule" suggests that to fund a comfortable retirement, you need roughly 25 times your annual expenses saved (because withdrawing 4% per year from a diversified portfolio has historically been sustainable for 30+ years). For example, if you need $60,000/year in retirement, you'd need approximately $1.5 million saved. However, individual needs vary significantly based on lifestyle, health, Social Security income, and retirement age.
What annual return should I use?: The US stock market (S&P 500) has historically returned approximately 7% annually after inflation over long periods. A diversified portfolio of stocks and bonds might average 5–7%. For conservative estimates, many financial planners use 5–6% to account for fees, taxes, and sequence-of-returns risk. For near-term projections (under 10 years), use a more conservative rate because there's less time to recover from market downturns. Always run scenarios with both optimistic and conservative return assumptions.
What is the impact of starting early?: Starting early is the single most powerful retirement planning lever. Due to compound interest, money invested at age 25 has 40 years to grow before retirement at 65, while money invested at 45 has only 20 years. A $5,000 annual contribution at 7% return starting at age 25 grows to about $1.1 million by age 65. The same contribution starting at age 35 grows to only $540,000 — less than half as much, for the same total contributions.
What about Social Security?: This calculator focuses on personal savings and investments and does not include Social Security income estimates. Social Security benefits are an important supplement to personal retirement savings — for most Americans, Social Security replaces 30–40% of pre-retirement income. You can get a personalized Social Security estimate by creating an account at ssa.gov. Factor your projected Social Security income into your overall retirement income plan alongside this calculator's output.

Retirement Savings Calculator

Behind Target

Savings Breakdown

Savings Growth Over Time

The 4% Rule

Free Retirement Savings Calculator

How to Use

FAQ

Related Tools

Loan Calculator

Salary Calculator

Compound Interest Calculator

You Might Also Like

Coin Flipper

Countdown Timer