Retirement Calculator

Plan for your retirement with compound growth projections

👤 Retirement Planning

📊 Retirement Projection

💡 Quick Examples

💡 Retirement Planning Tips

Start Early
Time is your greatest asset due to compound interest
Employer Match
Always contribute enough to get full company match
Diversify Investments
Don't put all eggs in one basket
Regular Reviews
Adjust contributions as income grows
Tax Advantages
Use 401k, IRA, and Roth accounts strategically
Emergency Fund First
Build 3-6 months expenses before investing

🏖️Formula

FV = PMT × [((1 + r/12)^(n×12) - 1) / (r/12)]

💡How it works

FV = Future Value, PMT = Monthly Payment, r = annual interest rate, n = years until retirement. This calculates how monthly contributions grow over time.

ℹ️ What is Retirement Calculator?

A retirement calculator projects how much your savings will grow by retirement age and whether your accumulated wealth will sustain your desired lifestyle throughout retirement. It is one of the most important financial planning tools for long-term wealth management.

📐 Formula

FV = PV×(1+r)ⁿ + PMT×[(1+r)ⁿ−1]/r | Withdrawal Rate: 4% Rule
FV— Future value of retirement savings
PMT— Annual contribution to retirement accounts
r— Annual expected return rate (net of fees)
4% Rule— Withdraw 4% of portfolio annually for 30-year sustainability

✏️ Worked Example

Current Age: 30
Retirement Age: 65
Current Savings: $50,000
Monthly Contribution: $500 ($6,000/yr)
Annual Return: 7%
  1. 1Years to retirement: 65 − 30 = 35 years
  2. 2Growth of current $50,000: $50,000 × (1.07)³⁵ = $532,000
  3. 3Growth of annual $6,000 contributions: $6,000 × [(1.07)³⁵−1]/0.07 = $851,000
  4. 4Total at retirement: $532,000 + $851,000 = $1,383,000
  5. 5Safe annual withdrawal (4% rule): $1,383,000 × 0.04 = $55,320/year
✅ Result: Estimated Retirement Savings ≈ $1.38M | Annual Withdrawal ≈ $55,320

💡 How to Interpret Results

  • ▸The 4% Rule: withdraw 4% of your portfolio in year 1, adjust for inflation each year — historically sustainable for 30 years.
  • ▸A $1M portfolio sustains ~$40,000/year. To spend $80,000/year, you need ~$2M.
  • ▸Social Security adds to income — factor it in to determine the "gap" your savings must cover.
  • ▸Inflation erodes purchasing power: $55,000/year today needs ~$100,000/year in 25 years at 2.5% inflation.
  • ▸Start early: $200/month from age 25 to 65 at 7% = $525,000. Starting at 35 = only $243,000.

❓ Frequently Asked Questions

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