See how your savings grow with compound interest, whether you’re on track for your goal, and roughly what annual income you could live on in retirement.

Am I saving enough for retirement?

Two forces build your nest egg: the money you put in, and the compounding of what you already have. The earlier you start, the more powerful the second force becomes — this calculator shows exactly how the two interact over time.

The math behind the projection

FV = P(1+i)ⁿ + PMT × [ ((1+i)ⁿ − 1) / i ]

P = current savings, PMT = monthly contribution
i = annual return ÷ 12 (monthly rate), n = years × 12 (months)

Once you have the future value (nest egg), we estimate annual retirement income with the 4% rule: a widely used guideline that you can safely withdraw about 4% of your portfolio per year over a 30-year retirement.

Worked example

Current savings $20,000, $500/month, 25 years, 7% return, 4% withdrawal:

Monthly rate i = 0.07/12 ≈ 0.005833, n = 25×12 = 300
Growth of current savings: $20,000 × (1.005833)^300 ≈ $113,000
Growth of contributions: $500 × ((1.005833)^300 − 1)/0.005833 ≈ $375,000
Nest egg ≈ $488,000 → annual income ≈ $488,000 × 4% ≈ $19,500/year

Frequently asked questions

Historically, the S&P 500 has returned roughly 7–10% before inflation. 7% is a reasonable central estimate; 5% is conservative. Run the calculator at both rates to see the range.

The 4% rule says withdraw 4% of your nest egg in your first retirement year, then adjust for inflation. It was designed to make a portfolio last 30 years and is a starting point, not a guarantee.

This calculator uses nominal dollars. To think in today’s dollars, reduce your return rate by expected inflation (e.g. use 7% − 3% = 4% real). That gives a more conservative picture.

Retirement Savings Calculator

Your retirement projection

What this means

Related guides

Am I saving enough for retirement?

The math behind the projection

Worked example

Frequently asked questions