Retirement Calculator

Not sure if you're saving enough for retirement? Put in your age, what you've saved so far and what you add every month. This retirement calculator will show you where you're headed.

You'll see what your savings could grow to, what you'll probably need, and how far apart those two numbers are. Inflation is built in, so the amount you need reflects future prices, not today's. Keep in mind that everything here is an estimate, not a forecast.

What is the Retirement Calculator?

Planning for retirement feels abstract until you actually run the numbers. This calculator tells you whether you're on track, or how far off you might be, based on what you've saved so far, how much you're putting away each month, and when you want to stop working. It's useful for anyone from a 25-year-old opening their first 401(k) to a 55-year-old wondering if they can retire in 10 years. CalciHub's version lets you factor in your current savings, monthly contributions, expected annual return, and target retirement age, then shows you a projected nest egg alongside an estimated monthly income in retirement.

How to use this retirement calculator

Fill in the boxes from top to bottom. It only takes a minute.

Start with your current age and the age you'd like to retire. Then enter your current savings. Count your 401(k), IRA and any other investments, but leave out your house.

Next is your monthly contribution. Use what you really put away right now, even if it's less than you'd like.

The expected annual return is your best guess for how fast your investments will grow each year. Nobody knows this number, so don't stress over it. Plenty of people try something between 5% and 7%. It's worth running a lower number too, just to see how the result changes.

Expected inflation is how fast prices rise each year. The default is 3%.

Last, enter how much you'd like to spend each month in retirement. Use today's prices. The calculator will adjust the amount for inflation for you.

Click Calculate and you'll see your results.

Reading your results

You'll see four numbers.

Projected savings is what your money could be worth on the day you retire, based on what you entered.

Estimated needed is the nest egg required to cover your spending. The calculator first raises your monthly spending to match future prices, then applies the 4% rule.

Gap is the difference between the two. If it's negative, you have a shortfall.

Years to retire is how long your money has to grow.

About that 4% rule: it says you can take roughly 4% of your savings out in your first year of retirement, then increase that amount with inflation each year. It's a handy rule of thumb. It isn't a promise that your money will last.

And if you see a shortfall, don't panic. It just tells you how big the gap is, which is exactly what you need to know before you can fix it.

A real example

Let's run the calculator's sample numbers.

Say you're 35 and plan to retire at 65. You have $50,000 saved and add $500 a month. You assume a 7% yearly return and 3% inflation. You'd like $4,000 a month in retirement, in today's money.

Your savings could grow to about $1,015,810. That sounds great until you look at the other side. After 30 years of inflation, $4,000 a month becomes roughly $9,700 a month. To pay for that, you'd need about $2,912,715.

So the gap is about $1,896,905.

It looks scary, but most of it comes from prices rising. Your target grows every year, just like your savings do.

Now watch what happens when you save more each month. At $1,000 a month, you'd have about $1.63 million at 65. At $1,500, about $2.24 million. At $2,000, about $2.85 million, which is very close to the goal.

What if you just work longer instead? Retire at 70 and you'd have about $1.48 million, but you'd need about $3.38 million. The target keeps moving away as fast as your savings grow. In this example, saving more helps much more than waiting. Working longer still has real upsides, like fewer years of withdrawals, but it won't fix the gap by itself.

These are estimates based on the numbers above. Real life will look different.

How the math works

Your savings grow through compound interest, meaning your returns earn returns of their own. Here's the formula behind the calculator:

FV = PV × (1 + r)ⁿ + PMT × [((1 + r)ⁿ − 1) ÷ r]

FV is your savings at retirement. PV is what you've saved today. The r is your yearly return divided by 12, and n is the number of months until you retire. PMT is your monthly contribution.

The first half of the formula grows the money you already have. The second half grows everything you add month after month.

How much do I need to retire?

it depends on how you want to live. But two simple rules can get you started.

The first is the 4% rule. Multiply your yearly spending by 25. If you want to spend $60,000 a year, you're looking at about $1.5 million.

The second is income replacement. Many planners suggest aiming to spend about 70% of what you earn before retirement. You might need more if you expect big healthcare costs or want to travel a lot, and less if your home is paid off.

Use these for a quick gut check. For a number based on your own situation, run the calculator above.

What to do if you're short

Start small. An extra $100 a month doesn't hurt much today, and over 30 years it adds up. You can test it right in the calculator.

If you get a raise, send part of it straight to your retirement account before you get used to spending it.

Check whether your employer matches your 401(k) contributions. If they do, contribute enough to get the full match. It's free money.

Also take another look at your spending goal. Dropping it by $500 a month lowers your target more than you'd expect.

And if you haven't started, start now. Every year you wait is a year of growth you don't get back.

What this calculator leaves out

It's better to know the limits now than be surprised later.

It doesn't count Social Security or any pension, so your real situation may be better than the result shows. You can check your Social Security estimate at ssa.gov.

It doesn't subtract taxes. Money from a traditional 401(k) or IRA is usually taxed when you take it out, so you'd have less to spend.

It assumes one steady return every year. Real markets go up and down, sometimes by a lot.

And it doesn't plan for healthcare or big one-time expenses, which can take a large bite out of a retirement budget.

Disclaimer

This calculator is for education and planning only. It isn't financial, tax or investment advice. Results are estimates based on what you enter, and actual results will vary. For advice about your own situation, please talk to a licensed financial professional.

Frequently Asked Questions