Retirement Planning

Retirement Savings Calculator

Project your nest egg using current savings, contributions, expected returns, and withdrawal rate. Free, no signup.

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Retirement Calculator

Project your nest egg with inflation & Social Security

Current Age

Retirement Age

Current Savings ($)

Monthly Contribution ($)

Annual Return (%)

Inflation Rate (%)

Social Security ($/mo)

Life Expectancy

⚡ Return Rate Scenarios

📉 Draw-Down Phase Projection

Retirement Planning

How much do I need to retire?

The most common rule of thumb is the 25x rule: save 25 times your expected annual retirement expenses. This is based on the 4% safe withdrawal rate — meaning you can withdraw 4% of your portfolio annually with a high probability it lasts 30 years. For $60,000/year in expenses, you'd need $1.5 million.

What is a good monthly retirement contribution?

Most financial advisors recommend saving 10–15% of your pre-tax income for retirement. Starting at 25 and saving 15% of a $60,000 salary — about $750/month — with a 7% return can produce over $2 million by age 67.

How does Social Security factor in?

Social Security replaces roughly 40% of pre-retirement income for average earners. The average benefit in 2026 is approximately $1,800–$2,000/month. You can get your personalized estimate at ssa.gov. Delaying benefits from 62 to 70 increases your monthly benefit by roughly 8% per year.

Finance Guide

Retirement Calculator Guide: The 4% Rule, Safe Withdrawal Rates & How Much You Really Need

A practical guide to retirement planning math — the 4% rule, sequence-of-returns risk, the 25× spending benchmark, and how to use a retirement calculator to test whether your number is realistic.

Written by Calculixy Editorial TeamReviewed by a Certified Financial Planner (CFP)Updated: May 2026

From the Underwriting Desk

Retirement planning math turns on a deceptively simple question: how much money do I need to stop working and not run out? The classic answer — the 4% rule — was developed in the 1990s using historical US market data. It says you can withdraw 4% of your starting portfolio annually, adjusted for inflation, for 30 years with a high probability of success. The math behind that rule is the foundation of nearly every retirement calculator, including ours. The more interesting work is understanding when it doesn't apply.

What this calculator does

The Retirement Calculator projects your retirement savings balance based on current savings, annual contributions, expected investment returns, and time until retirement. It then estimates how long that balance will last in retirement using a sustainable withdrawal rate, accounting for inflation. The result is two numbers: your projected nest egg, and the annual income that nest egg can reasonably support.

This is a long-horizon planning tool. Small differences in assumptions — return rate, contribution amount, retirement age — compound into very different end results over 20 to 40 years. The calculator's value isn't in producing a precise forecast (no one can do that). It's in stress-testing your plan against different assumptions to see how sensitive your retirement outcome is to each variable.

When to use this calculator

To estimate whether your current savings rate puts you on track for the retirement you want
To see the impact of increasing 401(k) contributions by 1% or 2%
To compare retiring at 60, 65, or 70 with the same savings
To test how a different expected return rate changes your outlook
To plan a Social Security claiming strategy alongside your portfolio
To run worst-case scenarios — lower returns, higher inflation, longer retirement

The accumulation formula

During your working years, your retirement balance grows through contributions and compounding returns. The math is the standard future-value-with-payments formula:

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

Variable definitions

FV = Future value (nest egg at retirement)
PV = Present value (current retirement savings)
PMT = Annual contribution (employee + employer match + IRA contributions)
r = Expected annual return as a decimal (7% = 0.07)
n = Years until retirement

The 4% rule and its modern updates

The 4% rule comes from the 1994 "Trinity Study" by financial advisor Bill Bengen. He back-tested historical US stock and bond returns and found that retirees who withdrew 4% of their starting portfolio annually, adjusted for inflation, had a 95%+ chance of their money lasting 30 years.

Required Nest Egg = Annual Spending ÷ 0.04 = Annual Spending × 25

If you want $60,000/year in retirement income from your portfolio, you'd need a $1.5 million nest egg ($60,000 × 25). If you want $100,000/year, you'd need $2.5 million.

Why "modern" research often recommends 3.3% to 3.7%

The 4% rule assumes a 30-year retirement. Researchers like Wade Pfau, Michael Kitces, and David Blanchett have argued that for longer retirements (35–40 years, which are now common with earlier retirements and longer lifespans), or for retirements starting in years with low expected returns, a 3.3%–3.7% withdrawal rate is more defensible.

The implication: if you want a more conservative estimate, multiply your annual spending by 30 (3.33%) or 33 (3.0%) instead of 25. A $60,000/year retirement using a 3.33% rule needs $1.8 million instead of $1.5 million — a significant difference.

The "25× spending" benchmark is the headline. The "30× spending" target is the version for retirees who want low statistical risk of running out, even in worst-case markets or longer-than-expected lifespans.

Step-by-step example

A 40-year-old has $150,000 in retirement accounts, contributes $20,000/year (combined employee + employer match), expects 7% returns, and plans to retire at 65.

Accumulation phase:

PV = $150,000
PMT = $20,000
r = 0.07
n = 25

FV = 150,000 × (1.07)^25 + 20,000 × [((1.07)^25 − 1) / 0.07] FV = 150,000 × 5.427 + 20,000 × 63.249 FV ≈ $814,000 + $1,265,000 = $2,079,000

Income in retirement (4% rule):

$2,079,000 × 0.04 = $83,160/year

Income in retirement (3.33% rule, more conservative):

$2,079,000 × 0.0333 = $69,231/year

This person is on track for a reasonable retirement at age 65 with the assumptions given. But change the assumptions: drop returns to 5%, and the nest egg falls to roughly $1,475,000 — supporting only $59,000/year at the 4% rule, $49,000 at the 3.33% rule. Retirement returns are unforgiving of optimism.

Sequence-of-returns risk: the variable most retirement calculators ignore

The 4% rule assumes steady returns. Real markets aren't steady. The order in which good and bad years occur — sequence-of-returns risk — dramatically affects how long a portfolio lasts in retirement.

Consider two retirees, both with $1 million, both withdrawing $40,000/year (the 4% rule), both averaging 7% returns over 30 years:

Retiree A: Strong returns in early retirement, weak returns later. Portfolio grows initially, sustains withdrawals comfortably.
Retiree B: Weak returns in early retirement, strong returns later. Portfolio drops fast, may run out by year 22 even with the same long-term average.

The mathematical risk is concentrated in the first 5–10 years of retirement. A 30% market crash in year 2 of retirement is far more dangerous than the same crash in year 20. This is why financial planners often recommend a "bond tent" strategy — temporarily reducing equity exposure in the years immediately before and after retirement, then gradually increasing it again as the worst sequence-of-returns risk passes.

Real-world use cases

1. Setting your target nest egg

Start with the income you want in retirement (in today's dollars). Multiply by 25 for the 4% rule benchmark, or by 30 for a more conservative target. That's your goal. The calculator works backward from there to tell you what contribution rate you need.

2. Choosing between Roth and Traditional contributions

The calculator can't directly answer this — both grow at the same rate. But it can help you compare lifetime outcomes by adjusting contributions. Roth contributions are made with after-tax dollars but grow tax-free; Traditional contributions are pre-tax but taxed on withdrawal. The decision depends on your current vs. future tax bracket.

3. Modeling early retirement (FIRE)

For Financial Independence/Retire Early (FIRE) planning, the 25× number gets larger because retirement lasts longer. The FIRE community typically targets 30×–33× annual spending, with diversified portfolios and significant equity exposure. Plug in a longer time horizon (50+ years) and lower withdrawal rates (3.0%–3.5%) to model FIRE accurately.

4. Coordinating with Social Security

Social Security is an inflation-adjusted income stream — essentially a guaranteed annuity from the government. It reduces the portfolio you need to support yourself. If you expect $30,000/year from Social Security and need $80,000/year total, your portfolio only needs to produce $50,000/year — meaning $1.25 million at 4% withdrawal instead of $2 million.

5. Pension or annuity income

Same logic as Social Security. Any guaranteed income stream reduces the portfolio you need. The retirement calculator can model how a private pension affects your required nest egg.

Common mistakes

Using overly optimistic return assumptions. 10%+ historical S&P returns are widely cited but include extraordinary periods. Most planners now assume 5%–7% real (inflation-adjusted) returns for long-horizon planning.
Forgetting taxes. Traditional 401(k) and IRA withdrawals are taxed as ordinary income. A $2 million Traditional 401(k) doesn't provide $80,000/year of after-tax income — it provides roughly $60,000–$65,000 after federal and state taxes.
Ignoring healthcare costs. Healthcare in retirement is often the largest unanticipated expense. Medicare doesn't cover everything; long-term care isn't covered at all without separate insurance.
Not accounting for inflation. 4% withdrawals are adjusted for inflation each year — your spending needs to increase to maintain purchasing power. The calculator handles this when you specify "real" (inflation-adjusted) return rates.
Treating Social Security as gravy. Most Americans rely substantially on Social Security in retirement. Get your Social Security estimate at ssa.gov and factor it into your plan.
Forgetting required minimum distributions (RMDs). Traditional retirement accounts require RMDs starting at age 73 (74 starting in 2033). RMDs force taxable income whether you need the money or not.
Skipping the spousal beneficiary scenario. Married couples should plan for retirement on either single life, not just both lives. A surviving spouse loses one Social Security payment and may pay higher taxes as a single filer.

Frequently asked questions

How much do I need to retire?

The most common benchmark is 25× your annual spending (the 4% rule). For longer or more conservative retirements, 30× is safer. If you spend $70,000/year, target $1.75M ($70,000 × 25) to $2.1M ($70,000 × 30). Subtract any guaranteed income (Social Security, pension) from the spending number before multiplying.

What return rate should I use?

For conservative planning, use 4%–5% real (after-inflation) returns. For moderate planning, 5%–6%. Using historical nominal returns (8%–10%) ignores inflation and can produce dangerously optimistic projections. The Federal Reserve and major asset managers regularly publish long-term capital market assumptions you can reference.

Is 4% safe in today's market?

Research from 2020–2023 from sources like Morningstar and David Blanchett suggested that starting withdrawal rates closer to 3.3%–3.8% may be more sustainable in today's lower-yield environment compared to the historical conditions Bengen analyzed. For new retirees today, 3.5%–3.7% is a defensible mid-range.

What if I'm starting late?

The calculator will show what you need to contribute monthly to hit your goal — but those numbers can be intimidating starting in your 40s or 50s. Several strategies help: maximize catch-up contributions (allowed at age 50+), delay retirement by even 2–3 years, work part-time in early retirement to bridge income, downsize housing to free up equity.

Should I count Social Security?

Yes. Most planners do. Get your personalized estimate from ssa.gov. If you're under 45 and concerned about long-term Social Security solvency, model conservatively — assume 80% of projected benefits. Even at reduced benefit levels, Social Security remains a meaningful income source.

How does the calculator handle inflation?

The cleanest approach is to use "real" returns (returns after inflation) throughout. If you use real returns and contribute in today's dollars, the result is in today's dollars — directly comparable to your current spending. If you use nominal returns, you'll need to inflate your final spending target to match.

What's the difference between accumulation phase and decumulation phase?

Accumulation = your working years, when contributions add to the portfolio and compounding grows it. Decumulation = your retirement years, when you're withdrawing from the portfolio. The math and the risks differ. In accumulation, market drops can actually help by letting you buy at lower prices. In decumulation, market drops are dangerous because they coincide with required withdrawals.

Should I pay off my mortgage before retiring?

Mathematically depends on rate vs. expected returns. Emotionally, many retirees prefer to enter retirement debt-free for the predictability. A $1,500/month mortgage payment in retirement is equivalent to needing an extra $450,000 in retirement savings (using the 25× rule) to cover it. Use the Mortgage Calculator to compare scenarios.

Related Calculixy calculators

From the editorial desk: Retirement calculators give certainty about uncertain things. The right way to use one isn't to find the precise number you need — it's to find the assumptions that change your outcome the most, then plan against the unfavorable side of each. If your retirement only works at 8% returns, you're not planning a retirement. You're hoping for one.

Calculixy's Retirement Calculator provides estimates for educational use only and does not constitute investment advice or a guarantee of retirement security. Actual retirement outcomes depend on market returns, inflation, tax law, healthcare costs, longevity, and many factors beyond any calculator's scope. Consult a Certified Financial Planner (CFP) or fiduciary advisor before making retirement decisions. All calculations run locally in your browser; Calculixy does not collect or transmit the values you enter.