Retirement Savings Calculator
Project Your Nest Egg
Current Age
Target Retirement Age
Current Retirement Savings
Monthly Contribution
Estimated Annual Return (%)
Are You on Track for Retirement?
Planning for retirement is a long-term game. The key is to start early, save consistently, and let the power of compound interest work for you. This calculator helps you project the future value of your retirement savings, often called your "nest egg."
By entering your current situation and future contributions, you can visualize your path to retirement and see if you're on track to meet your goals. Adjust the numbers to see how changes in your savings habits or market returns could impact your final outcome.
How to Use This Calculator
1. Enter Your Timeline
Input your current age and your target retirement age.
2. Input Your Financials
Provide your current retirement savings, your monthly contribution, and your estimated annual return on investments.
3. View Your Projection
The calculator will project the future value of your savings at retirement, showing you the breakdown of your contributions versus the interest earned.
Contributions vs. Growth
The chart generated by the calculator powerfully illustrates the two engines of your portfolio's growth: your contributions and the interest earned. In the early years, your contributions do most of the heavy lifting. Your portfolio grows mostly because you are adding money to it.
However, as time goes on, the 'Total Interest' area of the chart begins to swell and eventually surpasses your contributions. This is the magic of compounding. Your money starts making more money than you are putting in. The longer your time horizon, the more dramatic this effect becomes, which is why starting to save early is so critical.
Will Your Nest Egg Be Enough?
Now that you have a projection, see how it stacks up against your needs.
- Does your projected savings meet the portfolio size you need for financial independence? Check with our FIRE Number Calculator.
- See how much you could safely withdraw from your nest egg each year in retirement with the Safe Withdrawal Rate Calculator.
Frequently Asked Questions
How much do I need to save for retirement?
The amount you need for retirement depends heavily on your desired lifestyle and annual expenses in retirement. A common rule of thumb is to aim for a nest egg that is 25 times your estimated annual expenses, which allows for a 4% withdrawal rate. This calculator helps you see if you are on track to reach your goal.
What is a good retirement savings rate?
Many financial advisors recommend saving 15% of your pre-tax income for retirement. However, those pursuing Financial Independence or early retirement often aim for much higher savings rates, sometimes 50% or more.
What's a realistic investment return to assume?
While past performance is not indicative of future results, the historical average annual return of a diversified stock market portfolio (like the S&P 500) is around 10% before inflation. A more conservative estimate, after accounting for inflation (a 'real return'), is often in the 7-8% range. It's wise to run scenarios with different rates.