Retirement Planning Calculator US
Estimate the retirement corpus you need based on expenses, inflation and post-retirement returns.
How it works
Compound interest earns returns on both your original money and the returns already added. Adding a regular monthly contribution accelerates growth further over time.
A = P(1 + r/n)^(nt) + contributions compounded monthly- Longer time horizons benefit most from compounding
- More frequent compounding gives slightly higher growth
- The donut shows how much of your final balance is interest vs money you put in.
Frequently asked questions
How much money do I need to retire?
A common starting point is about 25 times your expected annual expenses, based on the 4% withdrawal guideline — but your real number depends on lifestyle, longevity and other income like Social Security.
What is the 4% rule?
It suggests withdrawing about 4% of your portfolio in year one of retirement and adjusting for inflation after, aiming for the money to last roughly 30 years. It is a guideline, not a guarantee.
When should I start saving for retirement?
As early as possible. Compounding rewards time, so contributions made in your 20s typically grow much larger than the same amounts started a decade later.
Should I use a 401(k) or an IRA?
Both are tax-advantaged. Many people contribute enough to a 401(k) to get the employer match, then use an IRA, then return to the 401(k) — but the right mix depends on your situation.
Does this account for inflation?
Treat projected balances as nominal unless you enter an inflation-adjusted return. Inflation reduces future purchasing power, so build it into your target.
Is this retirement advice?
No. It is an educational planning estimate. For decisions tailored to your finances, speak with a qualified financial advisor.
How much you need to retire
Retirement planning works backward from the income you want in retirement to the savings required to produce it. This calculator combines your current savings, ongoing contributions, expected return and time horizon to project your future nest egg and whether it supports your goal.
The 4% rule of thumb
A long-standing guideline suggests you can withdraw about 4% of your portfolio in the first year of retirement, adjusting for inflation thereafter, with a reasonable chance the money lasts ~30 years. Flipped around, it implies a target nest egg of roughly 25 times your annual spending — so $50,000 a year of expenses points to about $1.25 million.
Why starting early wins
Because returns compound, early contributions do the heaviest lifting. Saving $500 a month from age 25 at a 7% return can grow far larger by 65 than starting the same amount at 35 — often by hundreds of thousands of dollars — purely from the extra decade of compounding.
Accounts and assumptions
Tax-advantaged accounts such as a 401(k) or IRA accelerate growth. Projections are only as good as their assumptions: returns vary, inflation erodes purchasing power, and longevity differs. Treat the result as a planning estimate and revisit it regularly; for personalised decisions, consult a qualified financial professional.
Results are estimates for general guidance in United States and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.