Know exactly where you stand for retirement. This planner calculates your monthly savings target based on your current savings, desired retirement amount, expected returns, and timeline. Adjust any variable to see how it impacts your goal.
Monthly Savings Needed:
Total Interest Earned:
Enter values and click Calculate to see chart
How to Use This Tool
Enter your current retirement savings balance.
Enter your target retirement nest egg amount.
Input your expected average annual return (7-8% is a common long-term stock market estimate).
Enter the number of years until you plan to retire.
Click Calculate to see your required monthly contribution.
The Formula
Uses the future value of an annuity formula. Monthly contribution = (Target - Current FV) x r / ((1+r)^n - 1) where r is monthly rate and n is total months. Assumes a fixed annual return throughout your career.
Why It Matters
You want $1,000,000 for retirement in 25 years with $50,000 already saved and expecting 7% returns. The calculator shows you need $742/month. If you increase your contributions to $1,000/month, you will have $1,435,000 — showing the power of starting earlier and contributing more.
Frequently Asked Questions
When should I start saving for retirement?
The best time to start saving for retirement was the day you started working; the second best time is today. Starting at age 25 and contributing $300/month at 7% returns yields about $600,000 by age 65. Waiting until age 35 means you need $535/month to reach the same goal — a 78% increase. Delaying until 45 requires $1,270/month. Even if you are in your 40s or 50s, starting now is far better than never starting, especially with catch-up contributions available for those 50 and older.
How much money do I need for retirement?
A common rule of thumb is to aim for 70-80% of your pre-retirement annual income to maintain your lifestyle. A $100,000 earner would need $700,000-$800,000 in savings, assuming Social Security covers part of the rest. Your specific needs depend on your expected expenses, health care costs, housing situation, and whether you want to travel or support family members. Factor in that inflation erodes purchasing power — $1,000 today will have the buying power of about $470 in 30 years at 2.5% inflation.
What is the 4% rule?
The 4% rule suggests you can safely withdraw 4% of your retirement portfolio in the first year of retirement, then adjust that amount for inflation each subsequent year, without running out of money over 30 years. This means a $1,000,000 portfolio supports $40,000/year in initial withdrawals. The rule originated from the Trinity Study and has held up in historical backtests with a 75/25 stock/bond portfolio. It is a starting point, not a guarantee — market conditions, your asset allocation, and sequence-of-returns risk all affect outcomes.
When should I start taking Social Security?
You can claim Social Security as early as age 62, but your benefits are permanently reduced — roughly 30% less than your full retirement age (FRA) benefit. Waiting until age 70 increases your benefit by about 8% per year past FRA, potentially doubling your monthly check compared to claiming at 62. The break-even point between claiming early and waiting is typically around age 78-80. Consider your health, family longevity, whether you have other income sources, and spousal benefits when deciding. Claiming at FRA is a reasonable default for most people.
Should I use a Roth IRA or 401(k)?
Start with your 401(k) up to the employer match, since that is free money you cannot get elsewhere. Then prioritize a Roth IRA if your income qualifies (under $145,000 single / $230,000 married for 2024), because Roth contributions grow tax-free and withdrawals are tax-free in retirement. Once you max out your Roth IRA, go back to your 401(k) to maximize tax-deferral benefits. Having both Roth and traditional accounts gives you flexibility to manage your tax bill in retirement by choosing which accounts to withdraw from.