👴 Retirement Calculator
Calculate your retirement savings
Stock market: ~7-10%, Bonds: ~3-5%
How to Use This Calculator
Enter Your Age and Retirement Age
Input your current age and target retirement age. This determines how many years you have to save for retirement.
Enter Current Savings and Monthly Contribution
Enter your current retirement savings (if any) and how much you plan to contribute monthly. Regular contributions help your savings grow over time.
Enter Expected Annual Return
Enter your expected annual return on investments (typically 6-8% for diversified portfolios). This affects how much your savings will grow over time.
Review Retirement Projection
See your projected retirement savings at retirement age, total contributions, interest earned, and potential retirement income. Use this to plan your retirement savings strategy.
Formula
Future Value = Current Savings × (1 + r)^n + PMT × [((1 + r)^n - 1) / r]
Where:
• Current Savings = Existing retirement savings
• PMT = Monthly contribution
• r = Monthly interest rate (Annual Rate ÷ 12)
• n = Number of monthly periods (Years × 12)
Example Calculation:
If current savings $50,000, monthly contribution $1,000, return 7%, 35 years:
• Current savings grows: $50,000 × (1.005833)^420 = ~$596,000
• Contributions grow: $1,000 × [((1.005833)^420 - 1) / 0.005833] = ~$1,660,000
• Future value: ~$2,256,000
About Retirement Calculator
A retirement calculator projects your retirement savings based on current savings, monthly contributions, and expected returns. This calculator helps you understand how much you'll have saved by retirement age and whether that amount is sufficient for your retirement needs. It accounts for compound interest on both your current savings and future contributions, showing the power of starting early and contributing regularly. Use this calculator to set retirement savings goals and plan your retirement strategy.
When to Use This Calculator
- Retirement Planning: Plan for retirement savings
- Goal Setting: Set retirement savings goals
- Contribution Planning: Determine how much to contribute
- Savings Analysis: See impact of different contribution amounts
Understanding Retirement Savings
- Compound Interest: Your savings grow with compound interest over time
- Regular Contributions: Consistent contributions significantly boost retirement savings
- Time Matters: Starting early gives your money more time to grow
- Returns Matter: Higher returns mean more retirement savings
Why Use Our Calculator?
- ✅ Retirement Projection: See projected savings at retirement
- ✅ Goal Planning: Set and track retirement goals
- ✅ Contribution Analysis: See impact of different contributions
- ✅ Retirement Strategy: Plan your retirement savings strategy
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
How much should I save for retirement?
A common guideline is to save 10-15% of your income for retirement, starting in your 20s. However, the amount depends on your retirement goals, expected expenses, other income sources (Social Security, pensions), and when you want to retire. Use this calculator to see how different contribution amounts affect your retirement savings. Aim to have 25-30 times your annual expenses saved by retirement.
What is a good retirement savings goal?
A good retirement savings goal depends on your expected expenses in retirement. A common rule is the 25x rule - have 25 times your annual expenses saved. For example, if you need $50,000/year in retirement, aim for $1,250,000 saved. Another guideline is the 4% rule - you can withdraw 4% of your portfolio annually, so divide your annual expenses by 4% to get your target savings amount.
When should I start saving for retirement?
Start saving for retirement as early as possible! The earlier you start, the more time your money has to grow with compound interest. For example, starting at age 25 vs. age 35 can mean hundreds of thousands of dollars more at retirement, even with the same contribution amount. Time is one of the most powerful factors in retirement savings due to compound interest.
What return rate should I use?
Expected return rates depend on your investment mix. For diversified portfolios: Conservative (mostly bonds): 3-5%, Moderate (mix of stocks/bonds): 6-8%, Aggressive (mostly stocks): 8-10%. Historical stock market returns average around 7-10% annually. However, past performance doesn't guarantee future results. Use conservative estimates (6-7%) for planning to account for uncertainty.