Retirement Calculator

A common rule of thumb is to save 25 times your desired annual retirement income. If you want $48,000 per year ($4,000/month), you need about $1.2 million. This is based on the "4% rule" — withdrawing 4% of your portfolio annually has historically sustained a 30-year retirement.

However, the actual amount depends on many factors: your expected investment returns, inflation, Social Security benefits, pension income, healthcare costs, and how long you expect to live in retirement.

Time is your biggest advantage when saving for retirement. Thanks to compound interest, money invested early grows exponentially:

• Starting at 25: Saving $300/month at 7% annual return yields ~$1.0 million by age 65.
• Starting at 35: The same $300/month yields ~$453,000 by age 65.
• Starting at 45: You'd need $820/month to reach $453,000 by age 65.

Starting 10 years earlier more than doubles your final balance with the same monthly contribution. Every year of delay significantly increases the monthly savings required.

Inflation erodes purchasing power over time. At 3% annual inflation, $4,000 today will only buy the equivalent of $2,400 worth of goods in 17 years. This calculator adjusts for inflation when computing how much you need.

The "real return" on investments is the nominal return minus inflation. If your investments return 7% and inflation is 3%, your real return is approximately 4%. This real return is what actually grows your purchasing power.