Retirement Savings Calculator
Project your retirement savings and see how your money grows over time. Includes inflation adjustment and monthly income estimates.
| Age | Balance | Contributed | Growth |
|---|---|---|---|
| 31 | $16.9K | $16.0K | $919 |
| 32 | $24.3K | $22.0K | $2.3K |
| 33 | $32.3K | $28.0K | $4.3K |
| 34 | $40.8K | $34.0K | $6.8K |
| 35 | $50.0K | $40.0K | $10.0K |
| 36 | $59.8K | $46.0K | $13.8K |
| 37 | $70.3K | $52.0K | $18.3K |
| 38 | $81.6K | $58.0K | $23.6K |
| 39 | $93.7K | $64.0K | $29.7K |
| 40 | $106.6K | $70.0K | $36.6K |
| 41 | $120.5K | $76.0K | $44.5K |
| 42 | $135.5K | $82.0K | $53.5K |
| 43 | $151.4K | $88.0K | $63.4K |
| 44 | $168.6K | $94.0K | $74.6K |
| 45 | $187.0K | $100.0K | $87.0K |
| 46 | $206.7K | $106.0K | $100.7K |
| 47 | $227.8K | $112.0K | $115.8K |
| 48 | $250.5K | $118.0K | $132.5K |
| 49 | $274.8K | $124.0K | $150.8K |
| 50 | $300.9K | $130.0K | $170.9K |
| 51 | $328.8K | $136.0K | $192.8K |
| 52 | $358.8K | $142.0K | $216.8K |
| 53 | $390.9K | $148.0K | $242.9K |
| 54 | $425.3K | $154.0K | $271.3K |
| 55 | $462.3K | $160.0K | $302.3K |
| 56 | $501.9K | $166.0K | $335.9K |
| 57 | $544.4K | $172.0K | $372.4K |
| 58 | $589.9K | $178.0K | $411.9K |
| 59 | $638.8K | $184.0K | $454.8K |
| 60 | $691.1K | $190.0K | $501.1K |
| 61 | $747.3K | $196.0K | $551.3K |
| 62 | $807.5K | $202.0K | $605.5K |
| 63 | $872.1K | $208.0K | $664.1K |
| 64 | $941.3K | $214.0K | $727.3K |
| 65 | $1.02M | $220.0K | $795.6K |
What is Retirement Planning?
Retirement planning means determining how much money you need to stop working and live on your investment income. Most people need to replace 70–80% of their pre-retirement income to maintain their lifestyle. A retirement plan involves three key decisions: (1) how much to save monthly, (2) what return rate to expect on investments, and (3) how much to withdraw annually in retirement. The famous "4% Rule" suggests you can safely withdraw 4% of your savings annually without running out of money, assuming a diversified portfolio and a 30-year retirement. Starting early is the most powerful retirement advantage. A person who invests $500/month at age 25 will have far more at retirement age than someone who starts at 45, thanks to the power of compound interest over 40 years versus 20 years.
The Retirement Planning Formula
In this formula: • Total Savings = The amount you've accumulated by retirement • Annual Return Rate = The percentage your investments earn per year (typically 5–8%) • Withdrawal Rate = Usually 4% per year (the 4% Rule) For example, if you have $1,000,000 saved by retirement and use the 4% rule, you can withdraw $40,000 per year, or about $3,333 per month. This assumes your investments continue earning returns and that 4% doesn't exceed your portfolio's growth.
Worked Examples
Example 1: Aggressive Saver, Early Retirement
Scenario: Age 25, saving $1,000/month, expecting 8% annual returns, retiring at 55. 30 years of saving at 8% returns = approximately $1.5 million Using the 4% rule: $1,500,000 × 0.04 = $60,000/year Monthly retirement income: $5,000/month At age 55 with $5,000/month from your portfolio (plus Social Security around age 67), you could retire comfortably. This example shows why starting in your 20s is so powerful—30 years of compound growth turns monthly contributions into significant wealth.
Example 2: Moderate Saver, Traditional Retirement
Scenario: Age 30, saving $500/month, expecting 7% returns, retiring at 67 (full Social Security). 37 years of saving at 7% returns = approximately $1.8 million Using the 4% rule: $1,800,000 × 0.04 = $72,000/year Monthly retirement income: $6,000/month (plus Social Security of ~$3,000–4,000) Total monthly retirement income: $9,000–10,000 Even starting at 30 with moderate monthly savings, compound interest creates enough wealth to support 30+ years of retirement, especially when combined with Social Security benefits.
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Use it →Frequently asked questions
Everything you need to know about compound interest calculations.
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest. Unlike simple interest (which is only on the principal), compound interest grows exponentially over time.
Which compounding frequency is best?
More frequent compounding (daily vs. annually) yields slightly more interest. However, the difference is small — the interest rate itself has far more impact on final results than compounding frequency.
Does this account for inflation?
No — this calculator shows nominal (not inflation-adjusted) growth. To estimate real returns, subtract the inflation rate (typically 2–3%) from your interest rate before entering it.
How accurate is this calculator?
Very accurate for standard compound interest. It uses the exact compound interest formula with monthly contributions added at each compounding interval. Results may differ slightly from bank statements due to rounding.
What's the difference between annual and monthly compounding?
Annual compounding calculates interest once a year. Monthly compounding calculates it 12 times per year, and each calculation includes previously earned interest. Daily compounding does this 365 times. More frequent compounding = slightly more interest, but the effect is usually small compared to the interest rate itself.
Why isn't my bank balance matching the calculator?
Common reasons: Your bank may compound on a different schedule than you selected, fees reduce your balance, or the rate isn't fixed (it changed during the period). Also, banks often round to the nearest cent, which can create small discrepancies over time. This calculator assumes consistent interest rates and no fees.
What's a common mistake people make with compound interest?
Underestimating how powerful time is. Many people think starting late with larger amounts beats starting early with smaller amounts—it doesn't. A 25-year-old investing $100/month beats a 45-year-old investing $500/month. Also, people often don't account for how quickly debt compounds against them (credit cards, loans).
Can I use this to calculate investment returns?
Yes, if your investment has a consistent annual return rate. However, stocks and mutual funds don't have guaranteed returns—they fluctuate. Use this calculator to see potential returns under a given scenario, but understand that actual results will vary. For conservative planning, use a lower rate than historical averages.
How do I account for taxes on my earnings?
This calculator shows pre-tax results. To estimate after-tax returns, multiply the interest earned by (1 - your tax rate). For example, if you earned $1,000 in interest and your tax rate is 24%, you'd keep about $760. Tax-advantaged accounts (401k, Roth IRA) don't require this adjustment during accumulation.