Retirement Calculator

Calculate how much you'll have at retirement and estimated monthly income using the 4% withdrawal rule.

FV = Current Savings x (1 + r)^n + Monthly x [((1 + r)^n - 1) / r]; Monthly Income = Total x 4% / 12
Age 30, retire at 65 (35 years), $50,000 saved, $500/month at 7% return: Total = $1,464,903, Monthly income = $4,883 (4% rule)

How much do I need to retire comfortably?

A common rule is 25x your annual expenses (based on 4% withdrawal rate). If you need $50,000/year, you need $1.25 million. Another approach: 10-12x your final salary. These are starting points - adjust for Social Security, pensions, healthcare costs, and lifestyle. Use this calculator to see your trajectory.

What is the 4% withdrawal rule?

The 4% rule suggests withdrawing 4% of your retirement portfolio annually, adjusted for inflation. With $1 million, that's $40,000/year. Historical data shows this provides a high probability of not outliving your money over 30 years. Conservative approach uses 3-3.5% for longer retirement periods.

How much should I contribute to my 401(k)?

At minimum, contribute enough to get full employer match (typically 3-6%) - it's free money. Ideally, contribute 10-15% of income including match. Max contribution for 2024 is $23,000 ($30,500 if 50+). Higher contributions when young leverage compound growth. Even 1% increases make huge differences over decades.

What is a realistic investment return for retirement?

Historical stock market average is 10% annually, but 6-8% is more conservative for planning (accounts for fees, inflation, bonds). Young investors can assume 7-8%, those near retirement should use 5-6%. Diversified portfolio of stocks and bonds is typical. Returns vary yearly - this calculator uses average annual return.