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Retirement Calculator Project retirement savings and check if you're on track using the 4% rule.

Retirement Calculator illustration
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Retirement Calculator

Project retirement savings and check if you're on track using the 4% rule.

1

Enter Your Details

Input current age, retirement age, savings, monthly contribution, and expected return.

2

Set Income Goal

Enter your desired annual retirement income and expected inflation rate.

3

Check Your Status

See if you're on track with projected savings, sustainable withdrawal, and any shortfall.

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What Is Retirement Calculator?

A retirement calculator projects how much money you'll have at retirement based on your current savings, monthly contributions, and expected investment returns. It then evaluates whether your projected savings can sustain your desired retirement income using the widely-referenced 4% rule — the guideline that you can withdraw 4% of your retirement portfolio annually with a high probability of not running out of money over a 30-year retirement. The calculator adjusts your desired income for inflation, showing what today's income goal will actually cost in future dollars. If there's a shortfall, it tells you how much more you need. This analysis helps you make informed decisions about saving rate, investment strategy, and retirement timing.

Why Use Retirement Calculator?

  • Projects savings at retirement with compound growth
  • Applies the 4% rule for sustainable withdrawal analysis
  • Adjusts desired income for inflation
  • Clear on-track/shortfall indicator
  • Shows growth earned vs contributed breakdown

Common Use Cases

Retirement Planning

Determine if your current savings rate will meet your retirement income goals.

Goal Setting

Find out how much you need to save monthly to reach your retirement target.

Early Retirement

Evaluate whether you can afford to retire before traditional retirement age.

Scenario Analysis

Test different scenarios: higher contributions, later retirement, different return rates.

Technical Guide

The calculator combines future value of current savings (FV = PV × (1+r)^n) with future value of monthly contributions (FV = PMT × ((1+r)^n − 1)/r) where r is the monthly return rate. Inflation adjustment uses: Future Income Need = Current Income × (1 + inflation)^years. The 4% rule states that withdrawing 4% of your portfolio annually (adjusted for inflation each year) has historically sustained portfolios for 30+ years in US markets. The amount needed to support your desired income: Required Portfolio = Inflation-Adjusted Income / 0.04. If your projected savings exceed this, you're on track. The shortfall is the difference between required and projected portfolio. Note: the 4% rule is based on historical US market data and may not hold in all future scenarios.

Tips & Best Practices

  • 1
    The 4% rule provides a useful guideline but isn't guaranteed
  • 2
    Starting to save early is the most powerful retirement strategy due to compounding
  • 3
    Inflation erodes purchasing power — $60,000 today won't buy the same in 30 years
  • 4
    Social Security income can supplement your portfolio withdrawals
  • 5
    Consider healthcare costs, which typically increase faster than general inflation

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Frequently Asked Questions

Q What is the 4% rule?
A guideline suggesting you can withdraw 4% of your retirement portfolio annually (adjusting for inflation) with a high probability of not running out over 30 years. Based on historical US market returns.
Q How much do I need to retire?
A common estimate: 25 times your desired annual income (the inverse of 4%). For $60,000/year, you'd need about $1.5 million in retirement savings.
Q Does this include Social Security?
No. Social Security benefits would supplement your portfolio withdrawals, effectively reducing the amount you need from savings.
Q What return rate should I assume?
A balanced portfolio has historically returned 7-8% annually (nominal). Use 5-7% for conservative planning. Pre-retirement, you might use a higher rate; near retirement, lower.
Q How does inflation affect retirement?
At 3% inflation, prices double every 24 years. Income of $60,000 today would need to be about $145,000 in 30 years to maintain the same purchasing power.
Q When should I start saving for retirement?
As early as possible. Starting at 25 vs 35 can mean hundreds of thousands more at retirement due to compound growth, even with the same contribution amount.

About This Tool

Retirement Calculator is a free online tool by FreeToolkit.ai. All processing happens directly in your browser — your data never leaves your device. No registration or installation required.