How much will you have at retirement?
This calculator grows your current savings and your ongoing monthly contributions at an expected annual return, compounded monthly, until your target retirement age. It then applies the well-known 4% rule to estimate how much annual income that nest egg could safely provide — a rough guide that a portfolio can support withdrawals of about 4% in the first year, adjusted for inflation thereafter.
The formula
Future value combines a lump sum and a stream of deposits: FV = P(1+r)ⁿ + PMT·[((1+r)ⁿ − 1) / r], where P is what you have now, PMT is the monthly contribution, r is the monthly return, and n is the months until retirement. Because of compounding, contributions made in your early years do far more work than the same dollars added later.
Frequently asked questions
What return rate should I assume?
For a long-term, stock-heavy retirement portfolio many people model 6%–8% before inflation, though real returns vary widely year to year and are not guaranteed. If you want to think in today's dollars, use a lower 'real' return such as 4%–5% to account for inflation.
What is the 4% rule?
It is a rough retirement guideline suggesting you can withdraw about 4% of your portfolio in the first year of retirement, then adjust for inflation, with a good chance of the money lasting around 30 years. It is a starting point for planning, not a guarantee — your own plan should reflect your situation and may warrant professional advice.
Does this include my employer match or 401(k)?
Include any employer match in your monthly contribution figure to capture that free growth. The calculator treats all contributions the same regardless of the account type they go into.