Retirement Calculator
Retiring at 67 on $60,000 a year in today's dollars, with $24,000 of it from Social Security, until age 90 takes about $1.74 million at 3% inflation and 5% returns. A 35-year-old with $50,000 saved who adds $600 a month, rising 2% a year, at 7% is on course for $1.53 million, about $214,000 short.
By the Calculators With Steps team · Updated November 10, 2026 · How we check our math
- Projected savings at retirement
- $1,525,691$592,482 in today's dollars
- Savings needed at retirement
- $1,739,709to fund $36,000/yr in today's dollars for 23 years
- Shortfall
- $214,018
- Extra saving needed
- $150/moon top of your current plan, until age 67
- Sustainable retirement income
- $55,571/yrtoday's dollars, incl. $24,000 Social Security & pensions
- First-year withdrawal
- $92,703at age 67, after 32 years of 3% inflation
- 4% rule estimate
- $2,317,57425 × first-year withdrawal
- Savings run out at age
- 86
- Total you contribute
- $318,435
Step-by-step working
- Years to retirement = 67 − 35 = 32; years in retirement = 90 − 67 = 23
- Projected savings: grow $50,000 and monthly deposits starting at $600 (raised 2% a year) at 7% ÷ 12 per month = $1,525,691
- Income gap in today's dollars = $60,000 − $24,000 = $36,000
- First withdrawal = $36,000 × (1 + 0.03)^32 = $92,703
- Savings needed = W × [1 − ((1 + g) ÷ (1 + r))^N] ÷ (r − g) × (1 + r) with W = $92,703, g = 3%, r = 5%, N = 23 = $1,739,709
- Shortfall $214,018 ÷ 1,428.41 (future value of $1 a month) = $150 more per month
Show year-by-year projection
| Age at year end | Contributions | Withdrawals | End balance |
|---|---|---|---|
| 36 | $7,200 | $0 | $61,050 |
| 37 | $7,344 | $0 | $73,048 |
| 38 | $7,491 | $0 | $86,064 |
| 39 | $7,641 | $0 | $100,176 |
| 40 | $7,794 | $0 | $115,467 |
| 41 | $7,949 | $0 | $132,023 |
| 42 | $8,108 | $0 | $149,941 |
| 43 | $8,271 | $0 | $169,321 |
| 44 | $8,436 | $0 | $190,273 |
| 45 | $8,605 | $0 | $212,914 |
| 46 | $8,777 | $0 | $237,370 |
| 47 | $8,952 | $0 | $263,775 |
| Showing the first 12 of 55 rows. The full table loads with the calculator. | |||
Assumes steady returns and inflation, withdrawals at the start of each year rising with inflation, and no taxes or fees. Real markets vary year to year, so rerun with lower returns to stress-test your plan.
How to use the retirement calculator
- Ages. Your current age, the age you plan to retire and the age to plan until. Planning to 90 or 95 protects you if you live longer than average.
- Current savings. Everything set aside for retirement: 401(k), IRA and taxable investment accounts.
- Monthly contribution and yearly increase. What you add each month, including any employer match, and how fast you plan to raise it.
- Returns. One rate for the saving years and a lower one for retirement, when most people hold more bonds.
- Inflation. 2% to 3% a year is a common long-run assumption.
- Income needed and other income. Your target spending in today’s dollars and the Social Security or pension income you expect, also in today’s dollars.
The result shows your projected savings, the savings you need, the surplus or shortfall, and the extra monthly amount that would close any gap.
How the retirement formula works
1. Projected savings. Your balance and monthly deposits grow at the pre-retirement rate, compounded monthly. With a flat contribution this is:
FV = PV × (1 + i)^n + PMT × [((1 + i)^n − 1) ÷ i]
where i is the annual return ÷ 12 and n is the number of months. With yearly raises the calculator adds each month up one at a time.
2. Savings needed. The yearly gap (income needed minus Social Security and pensions) is inflated to your retirement date. The calculator then finds the lump sum that can pay it at the start of each year, rising with inflation, for every year of retirement:
Needed = W × [1 − ((1 + g) ÷ (1 + r))^N] ÷ (r − g) × (1 + r)
- W = first-year withdrawal
- g = inflation
- r = return during retirement
- N = years in retirement
3. Gap. Projected minus needed. A shortfall is divided by the future value of $1 saved monthly to give the extra saving required.
Worked example
A 35-year-old has $50,000 saved and adds $600 a month, raised 2% a year. They plan to retire at 67 and plan to age 90, with 7% returns before retirement, 5% after and 3% inflation. They want $60,000 a year in today’s dollars and expect $24,000 from Social Security.
| Item | Amount |
|---|---|
| Projected savings at 67 | $1,525,691 |
| Same amount in today’s dollars | $592,482 |
| Income gap in today’s dollars | $36,000 a year |
| First-year withdrawal at 67 | $92,703 |
| Savings needed at 67 | $1,739,709 |
| Shortfall | $214,018 |
| Extra saving to close it | $150 a month |
On the current plan the money runs out at age 86. Raising the contribution to $750 a month turns the shortfall into a $50,750 surplus. Retiring at 70 instead of 67 does even more, a $229,002 surplus, because it adds three years of saving and growth and removes three years of withdrawals.
The 4% rule: origin and caveats
The 4% rule comes from financial planner William Bengen’s 1994 paper in the Journal of Financial Planning. Using U.S. market returns back to 1926, he found that withdrawing 4% of a half-stock, half-Treasury portfolio in the first year, then raising the amount with inflation, never ran the money out in under 33 years. He suggested holding 50% to 75% in stocks. In 1998, three Trinity University professors reached a similar result in what is now called the Trinity study.
As a shortcut, the 4% rule means you need 25 times your first-year withdrawal. In the example that gives $2,317,574, more than the $1,739,709 found above, because the rule is built for bad historical sequences while the calculator assumes a steady 5% return. Keep these limits in mind:
- It was tested on 30-year retirements. Retiring at 50 calls for a lower rate.
- It uses past U.S. returns, which were stronger than in many other countries.
- It ignores fees and taxes, which reduce what you can spend.
- Real retirees adjust. Cutting spending after a market fall makes a higher starting rate safer.
Ways to close a retirement gap
- Start or raise contributions early. Money saved at 35 has 32 years to compound before 67. See the effect with the compound interest calculator.
- Capture the full employer match. It is an instant return on your money. Model it in the 401(k) calculator.
- Delay retirement or Social Security. Each extra year of work adds savings and shortens the drawdown, and benefits grow for each year you delay claiming, up to age 70.
- Plan for inflation. Check how prices have changed with the inflation calculator, and rerun this plan every year with updated numbers.
Retirement Calculator: frequently asked questions
How much do I need to retire?
Work out the yearly income you want, subtract expected Social Security and pensions, and find the lump sum that can pay the gap with inflation raises until your planning age. In the default example, a $36,000 gap in today's dollars needs about $1.74 million at age 67 to last to 90, assuming 5% returns and 3% inflation.
What is the 4% rule?
It says you can withdraw 4% of your savings in the first year of retirement and raise that dollar amount with inflation each year, with little risk of running out within 30 years. It comes from William Bengen's 1994 study of U.S. market history and the 1998 Trinity study. $1,000,000 supports a $40,000 first-year withdrawal.
How much of my income will I need in retirement?
The U.S. Department of Labor cites expert estimates of 70% to 80% of your pre-retirement income to keep the same standard of living. You may need less if your mortgage is paid off, or more if you plan to travel or expect high health costs.
How much does Social Security replace?
On average, Social Security replaces about 40% of a retiree's pre-retirement income, according to the Department of Labor. Higher earners get a smaller share replaced. Your own estimate is in your my Social Security account on ssa.gov.
What return should I assume for retirement savings?
Many planners use 6% to 7% a year before retirement for a stock-heavy portfolio and 4% to 5% after retirement as the mix becomes more conservative. These are assumptions, not promises. Test a lower figure to see how sensitive your plan is.
What if I am behind on retirement savings?
Save more, work longer, or plan to spend less. In the default example, adding $150 a month closes a $214,018 gap, and retiring at 70 instead of 67 turns it into a $229,002 surplus. Catch-up contributions to a 401(k) and IRA after age 50 also help.
Why does the calculator use inflation?
Prices rise every year, so $60,000 of spending today costs far more in 30 years. At 3% inflation, $36,000 today becomes $92,703 a year by the time a 35-year-old reaches 67, and withdrawals keep rising after that.
How we checked this page: every figure in the examples and FAQs above is produced by this calculator and verified by automated tests against known answers, and the rules and rates come from the sources below. Last updated . Spotted a problem? Tell us.