Retirement Savings Calculator
Project your retirement nest egg with compound growth and inflation adjustment
What is a retirement savings calculator?
A retirement savings calculator projects how much money you will have at retirement based on your current savings, monthly contributions, and expected investment returns. It factors in compound growth over time and adjusts for inflation, showing your future nest egg in both nominal and today's dollars.
Projected Savings at Retirement
$2,376,361.82
At age 65 (35 years)
In Today's Dollars
$844,519.54
Adjusted for inflation
Total Contributions
$470,000.00
Investment Growth
$1,906,361.82
Year-by-Year Projection
| Age | Balance | Contributions | Growth |
|---|---|---|---|
| 31 | $66,007.08 | $62,000.00 | $4,007.08 |
| 32 | $83,171.32 | $74,000.00 | $9,171.32 |
| 33 | $101,576.36 | $86,000.00 | $15,576.36 |
| 34 | $121,311.90 | $98,000.00 | $23,311.90 |
| 35 | $142,474.12 | $110,000.00 | $32,474.12 |
How is retirement savings calculated?
The future value formula combines compound growth on your existing savings with the future value of a series of monthly contributions, both compounded at the expected rate of return.
Retirement Savings Formula
Where FV is future value at retirement, PV is current savings, r is the annual return rate, t is years to retirement, and PMT is the monthly contribution.
Variable Definitions
- FV: Future value of retirement savings (nominal)
- PV: Present value (current savings)
- r: Expected annual return rate (as a decimal)
- t: Years until retirement
- PMT: Monthly contribution amount
To express the result in today's purchasing power, divide FV by (1 + inflation)^t. This shows how much your nest egg will be worth in real terms after accounting for the erosion of purchasing power.
Frequently Asked Questions
A common guideline is to save 25 times your expected annual expenses in retirement. This is based on the 4% rule, which suggests you can withdraw 4% of your portfolio annually without running out of money over a 30-year retirement. For example, if you need $50,000 per year, aim for $1,250,000 in savings.
The 4% rule is a retirement withdrawal guideline suggesting you can safely withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each subsequent year, with a high probability of your savings lasting at least 30 years. It was derived from historical stock and bond market returns.
Both offer tax advantages that accelerate retirement savings. A 401(k) allows higher contribution limits and many employers offer matching contributions — always contribute enough to get the full match, as it is essentially free money. An IRA offers more investment choices. Many people use both to maximize tax-advantaged savings.
Inflation erodes the purchasing power of money over time. At 3% annual inflation, $1 million today would have the purchasing power of roughly $412,000 in 30 years. This calculator adjusts your projected savings for inflation so you can see your future nest egg in today's dollars.
As early as possible. Thanks to compound growth, money invested in your 20s has decades to grow exponentially. Someone who starts saving $500/month at age 25 will accumulate significantly more than someone saving $1,000/month starting at age 40, even though the late starter contributes more total dollars.
General benchmarks suggest having 1x your salary saved by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. However, these are rough guidelines — your actual needs depend on your lifestyle, health care costs, Social Security benefits, desired retirement age, and expected annual spending.