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Retirement calculator

Retirement planning starts with three numbers: your target, your projected balance at retirement, and the monthly contribution that closes any gap. This calculator projects all three.

Updated July 2026
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Retirement number (25× spending)
$1,200,000
Projected balance at retirement
$1,057,915
Gap of $142,085
Monthly contribution needed
$700
To hit the retirement number on time

How it works

Target = Annual Expenses × 25 (4% rule) | Projected FV uses compound-interest formula
  • Target uses the 4% rule: 25× annual retirement expenses.
  • Projected value compounds your current savings plus monthly contributions to the target retirement age.
  • Real (inflation-adjusted) returns give a more realistic target — 7% nominal minus 3% inflation = ~4% real.
  • The gap tells you how much extra monthly contribution is needed to hit the target.

Worked examples

  • $40,000 annual retirement spending → target ~$1,000,000 invested (4% rule).
  • 30-year-old with $10,000 saved and $500/month at 7% real return reaches ~$820,000 by 65 — close to the target.
  • Same person contributing $700/month reaches ~$1.15M — comfortable buffer.

Frequently asked questions

How much do I need to retire?

A common shorthand is 25× your expected annual spending, invested in a diversified portfolio. Adjust down (aim closer to 3.5% withdrawals) for very early retirements or extra safety margin.

Is the 4% rule realistic?

It's a reasonable starting rule of thumb, based on historical US data. Some researchers argue 3.3–3.5% is safer for very long retirements or from low starting yields.

What return should I project?

Use real (after-inflation) returns. Historical US stocks average about 7% real; a balanced portfolio 4–6% real. Being conservative reduces the risk of over-optimism.

Related

Retirement planning
Full framework and account priorities.
4% rule (glossary)
How the standard withdrawal rule works.
FIRE calculator
For those aiming to retire early.
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.