Try it: Retirement Calculator
Estimate how much you need to retire based on annual expenses and your withdrawal rate.
Retirement Calculator
Plan Your Retirement
Enter your information to see if you're on track for a comfortable retirement
How Retirement Planning Works
Income Replacement
Financial experts recommend 70-80% of pre-retirement income for a comfortable lifestyle.
The 4% Rule
Multiply your desired annual income by 25 to estimate your total retirement need.
Inflation Impact
Inflation erodes purchasing power, so your retirement income needs grow over time.
Key retirement planning tips:
- Start early: Even small contributions in your 20s can grow to significant amounts by retirement
- Maximize employer match: Always contribute at least enough to get your full 401(k) employer match
- Diversify: Use a mix of 401(k), IRA, and taxable accounts for tax flexibility in retirement
- Review annually: Update your plan as your income, goals, and market conditions change
How our retirement calculator works
Enter current age and target retirement age
Type your current age and the age you plan to retire. The longer the runway, the more compounding helps.
Set current savings and contribution
Type your current 401(k), IRA, and other retirement balances, plus how much you save each month. Include any employer match.
Estimate expected return and income needs
Set an average annual return (5-8% is typical for diversified portfolios) and your target annual income in retirement. The calculator projects whether youre on track.
Key things to know about our retirement calculator:
- The 4% rule: You can withdraw 4% of your nest egg in year one, then adjust for inflation, with a 95% chance of not running out over 30 years.
- Save 10-15% of income: Most financial advisors recommend this for retirement, including any employer match.
- Social Security: Typically replaces 30-40% of pre-retirement income for the median earner; the rest comes from your savings.
For related calculations, try our investment calculator.
The full calculator includes inflation adjustments, Social Security modeling, and the 4% rule reference.
Open the full finance calculatorStep 1: Estimate Your Retirement Income Needs
A common rule of thumb is that you'll need 70-80% of your pre-retirement income to maintain your lifestyle in retirement. This accounts for reduced work expenses and potentially lower taxes, while healthcare costs may increase.
Quick Example
If your current income is $80,000/year and you want 80% replacement:
- Desired annual income: $80,000 × 0.80 = $64,000/year
- Retirement savings needed: $64,000 × 25 = $1,600,000
- (The 25x multiplier comes from 1 ÷ 0.04, the inverse of the 4% rule)
Step 2: Account for Social Security
Social Security will likely cover a portion of your retirement income. Check your benefits at ssa.gov to get an estimate. Subtract your expected Social Security from your desired income to find the gap your savings need to fill.
Step 3: Factor in Inflation
$64,000 today won't buy the same things in 20 years. At 2.5% inflation, that $64,000 will need to be about $105,000 in 20 years to have the same purchasing power. This is why inflation-adjusted calculations are critical.
Step 4: Calculate Your Monthly Savings Need
Once you know your target amount, you can calculate how much to save monthly. Consider your:
- Current savings: This amount will grow through compound interest
- Years until retirement: More time means less monthly savings needed
- Expected return: A balanced portfolio might average 6-7% annually
Use our Retirement Calculator to run these numbers with your specific situation. It factors in inflation, compound growth, and Social Security to give you a personalized savings target.
Common Retirement Planning Mistakes
- Starting too late: Waiting until 40 to save means you need 3-4x more monthly than starting at 25
- Underestimating healthcare: A couple retiring at 65 may need $315,000 for healthcare in retirement (Fidelity, 2024)
- Ignoring inflation: Fixed-income retirees lose purchasing power every year
- Counting on inheritance: Don't plan your retirement around money you may or may not receive
Take Action Today
The best time to start saving for retirement was yesterday. The second best time is now. Use our free Retirement Calculator to see where you stand, and our Investment Calculator to project your growth.