Retirement Savings Calculator
Retirement planning comes down to two numbers: how large your nest egg will grow by the time you stop working, and how much income that pot can safely pay you each year.
Projected nest egg
$1,015,810.37
- Total contributed
- $230,000.00
- Investment growth
- $785,810.37
- Safe annual withdrawal
- $40,632.41
- Monthly income including Social Security
- $5,286.03
- Nest egg in today's money
- $484,280.16
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Nest egg = savings x (1 + r)^n + contribution x ((1 + r)^n - 1) / r
- savings
- Balance you have today
- contribution
- Amount added each month
- r
- Monthly return, the annual rate divided by twelve
- n
- Months until retirement
How to check the result by hand
- 1
Work out the years to retirement
Subtract your current age from your planned retirement age, then multiply by twelve to get the number of months the money will compound.
- 2
Convert the return to monthly
Divide the assumed annual return by twelve. At 7% the monthly rate is about 0.5833%.
- 3
Grow the current savings
Multiply today's balance by (1 + monthly rate) to the power of the months. This is what the existing money becomes on its own.
- 4
Add the future value of contributions
Use the annuity formula on the monthly contribution. Each contribution compounds for the months remaining when it is made.
- 5
Apply the withdrawal rate
Multiply the nest egg by the withdrawal rate to get a safe annual income, then divide by twelve and add any pension or Social Security.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Retirement Savings page.