Free Online Retirement Calculator
Project your nest egg and monthly retirement income.
The 4% rule is a planning guideline, not a guarantee. Investment returns, inflation, taxes, and healthcare costs can all change the outcome.
Projection by age
| Age | Contributions | Nominal balance | Today's money |
|---|
About the Retirement Calculator
Retirement planning is a race between compounding and inflation. This calculator estimates the size of your nest egg at retirement from your current savings, your monthly contributions, and an expected annual return. It then converts that future balance into today's purchasing power using your inflation assumption, so you can see what the money might actually buy.
How the projection is built
Each month the balance grows by one-twelfth of the expected annual return and then receives your contribution. Over the full accumulation period this becomes the future value of a growing annuity. Total contributions are simply your current savings plus every monthly deposit, while the difference between the nest egg and contributions is investment growth. The inflation-adjusted value divides the nominal balance by (1 + inflation)years, which shows the equivalent amount in today's money.
The 4% rule
The sustainable income figure applies the widely used 4% rule: withdraw 4% of the portfolio in the first year, then adjust that amount for inflation each year. Dividing the inflation-adjusted nest egg by twelve gives a monthly income in today's purchasing power. The rule was derived from historical US market data and assumes a diversified portfolio, a roughly 30-year retirement, and a specific withdrawal pattern, so treat it as a starting point rather than a promise.
Frequently asked questions
Why does inflation reduce my nest egg so much?
Inflation compounds in the same way as investment returns. At 3% a year, prices roughly double in 24 years, so a dollar at retirement buys about half of what it does today.
Should I include my employer match?
Yes. Add the employer contribution to your monthly contribution. It is part of the money that actually reaches your retirement account and can significantly shorten the time needed to reach your goal.
What return is realistic after retirement?
Many plans assume a lower return after retirement because the portfolio usually shifts toward bonds and cash. This calculator applies one return for the whole period, so consider running a second projection with a lower rate for the decumulation years.