Retirement Calculator

A retirement calculator helps you answer the question that keeps people up at night: "Will I have enough money to retire?" It projects how much your current savings and future contributions will grow over time, factoring in investment returns and inflation. Whether you're contributing to a 401(k), IRA, or both, this tool shows you if you're on track or if you need to increase your savings rate. It won't predict the stock market (nobody can), but it gives you realistic scenarios based on historical returns. Think of it as a financial roadmap for your future self—the one who wants to spend Tuesday mornings golfing instead of in meetings.

Begin by entering your current age and when you plan to retire. Next, input how much you've already saved for retirement across all accounts—401(k), IRA, savings, etc. Then add how much you're currently contributing each month. Don't forget to include any employer match; that's free money you shouldn't leave on the table. Now comes the tricky part: estimated rate of return. Historically, the stock market has returned about 10% annually, but many financial planners use 7-8% to be conservative. Finally, estimate what you'll need monthly in retirement. A common rule of thumb is 70-80% of your current income, but your situation might be different. The calculator then projects whether you'll hit your goal.

The calculator typically shows your projected retirement balance and whether it'll sustain you through retirement. If the numbers look good, congratulations—you're ahead of most Americans. If there's a shortfall, don't panic. Small changes now compound dramatically over time. Increasing contributions by just 2% of your salary can make a six-figure difference over 30 years. The results also often show different scenarios: optimistic (higher returns), pessimistic (lower returns), and moderate (right in the middle). Most planners suggest assuming moderate returns so you're not caught off guard. Also watch for the impact of inflation—$5,000 monthly might sound comfortable now, but in 30 years, inflation will reduce its purchasing power significantly.

Meet Sarah, age 35, hoping to retire at 65. She has $75,000 saved and contributes $800 monthly to her 401(k), with her employer matching $400 (50% up to 6% of salary). Assuming a 7.5% annual return, by age 65 she'd have approximately $1,640,000. Sounds great, right? But here's the reality check: using the 4% rule (withdrawing 4% annually), that provides about $65,600 per year, or $5,467 monthly. If she needs $7,000 monthly, she'll fall short. To fix this, she could increase her contribution by $200 monthly, work two extra years, or plan to adjust her retirement lifestyle. This is why starting early matters—if Sarah had started at 25 instead of 35, that same $1,200 monthly contribution would grow to over $2,800,000.