How the calculation works
- Your current savings and monthly contributions grow at the expected return until your retirement age.
- That amount is then turned into a monthly income that lasts for the number of years in retirement you chose, while the remaining balance keeps earning the same return.
- If this income is below your target, the calculator shows how much extra you would need to save each month.
Example
A 35-year-old with $50,000 saved who invests $500 a month at 6% per year would have about $883,000 at 67. Over 25 years of retirement, that could pay around $5,600 per month.
Ways to close a retirement gap
- Increase contributions a little every year, for example with every raise.
- Use tax-advantaged accounts such as a 401(k) or IRA and capture any employer match.
- Retiring a few years later both adds savings and shortens the period you need to fund.
Frequently asked questions
What is the 4% rule?
A guideline that says you can withdraw about 4% of your savings in the first year of retirement and adjust for inflation afterwards, with a high chance of the money lasting 30 years.
Should I include Social Security?
Yes. Subtract your expected Social Security benefit from the monthly income you want; the calculator then shows what your savings need to cover.
What return should I use?
Many planners use 5–7% per year for a diversified portfolio over long periods. Using a conservative number gives a safer plan.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.