Retirement Calculator
Updated · By the CalculatorDash editorial team · How we check our maths
Quick answer
Starting at 35 with $50,000 saved and adding $800 a month at a 7% average return, you'd have about $1.38 million at 65. Using the 4% rule that supports roughly $55,000 a year of income, which is about $659,000 of savings in today's money after 2.5% inflation.
How this calculator works
A retirement projection compounds what you've already saved and every monthly contribution at an assumed average return until your retirement age. This calculator then applies a withdrawal rate to show the yearly income those savings might support, and adjusts the total for inflation so you can judge it in today's money.
The 4% rule comes from research on historical US stock and bond returns: withdrawing about 4% in year one and raising it with inflation has usually lasted 30 years. It's a rule of thumb, not a guarantee; retiring early or in a weak market argues for a lower rate.
Small changes compound over decades. Starting five years earlier, or raising contributions by a few percent of income, often matters more than chasing a higher return.
The formula
- Savings at retirement
- saved × (1 + r)^n + monthly × ((1 + r)^n − 1) ÷ r, with r = return ÷ 12
- Income
- savings × withdrawal rate
- Today's money
- savings ÷ (1 + inflation)^years
Worked example
From 35 to 65 is 360 months. $50,000 plus $800 a month at 7% grows to about $1,381,800, from $338,000 of contributions. At a 4% withdrawal rate that's about $55,270 a year. With 2.5% inflation, $1.38 million in 30 years buys what about $658,800 buys today.
Tips
- 01Capture any employer match first; it's an instant return on your money.
- 02Raise contributions each time you get a pay rise so your take-home pay never falls.
- 03Use a conservative return for planning; it's better to be pleasantly surprised.
Frequently asked questions
How much do I need to retire?
A common rule of thumb is 25 times the yearly income you'll need from savings (the inverse of the 4% rule), after counting pensions and Social Security.
What return should I assume?
Many planners use 5–7% a year for a diversified portfolio before inflation. Use lower numbers if you hold mostly bonds or cash.
What is the 4% rule?
A guideline that withdrawing 4% of savings in the first year of retirement, then adjusting for inflation, has historically lasted about 30 years.
Does this include Social Security or pensions?
No. Subtract expected pension or Social Security income from what you need, then use this calculator for the rest.