How to use the retirement calculator
Use numbers you can check on a statement. Count only money meant for retirement, and keep your own contributions, your employer's and any yearly extra in separate fields so you can see where the money comes from.
Enter spending and other income at today's prices. The calculator grows them to retirement for you, each at its own rate, because a fixed pension doesn't rise the way prices do.
- Enter your current age, planned retirement age and the age you want the money to last to.
- Add your retirement savings, your monthly contribution, your employer's monthly contribution and any yearly extra.
- Set a yearly contribution increase, the return before and during retirement, and the yearly fee.
- Enter spending inflation, your desired monthly spending today and other monthly income such as Social Security or a pension.
- Pick a planning withdrawal rate (4% is the default).
- Read your projected balance, target, funding ratio, the contribution you'd need and when the money runs out.
Example: age 35 to 65 with a spending gap
A 35-year-old has $50,000 saved, adds $350 a month and gets $150 a month from an employer. Contributions rise 2% a year. The plan assumes a 6% return before retirement, 4% after, a 0.40% fee and 2.5% inflation. They want $4,500 a month at today's prices and expect $2,500 from other income.
By 65 the projection reaches $819,148.65, or about $390,523.13 at today's prices. The spending gap needs $1,258,540.55 at a 4% withdrawal rate, so the plan is 65.09% funded. Under these smooth assumptions the money runs out during age 83. Raising the personal contribution to $739.18 a month would fully fund the target.
| Your monthly contribution | Balance at 65 | Target funded | Money runs out |
|---|---|---|---|
| $150 | $593,345.07 | 47.15% | During age 77.83 |
| $350 | $819,148.65 | 65.09% | During age 83.17 |
| $739.18 | $1,258,539.83 | 100% | During age 94.50 |
| $850 | $1,383,657.60 | 109.94% | Not by age 95 |
How the retirement target is calculated
The target starts with spending, not a round number. Subtract other income from spending, grow the gap by inflation until you retire, then divide the yearly gap by your withdrawal rate. In the example, a $2,000 monthly gap today becomes $4,195.14 a month at 65.
Savings grow month by month at the return you enter, less the fee. After retirement, a separate drawdown takes out the gap each year. It raises spending and other income at their own rates, and it stops when the money runs out or you reach your plan-through age.
Monthly return = (1 + annual return)^(1 / 12) - 1Monthly gap at retirement = spending today x (1 + inflation)^years - other income today x (1 + income growth)^yearsPortfolio target = yearly gap at retirement / withdrawal rateFunding ratio = projected balance / portfolio targetBalance at today's prices = projected balance / (1 + inflation)^years
Retirement spending: why the withdrawal rate matters
The withdrawal rate turns a spending gap into a savings target. A lower rate means a bigger target and a more cautious plan. FINRA says there's no single withdrawal rate that fits everyone, since age, investments, markets and spending needs all play a part.
Changing the rate doesn't change the drawdown. The drawdown always follows your stated spending gap, so you can see both the benchmark target and how long the money lasts.
| Withdrawal rate | Target at 65 | Target funded | Starting income from savings |
|---|---|---|---|
| 3% | $1,678,054.06 | 48.82% | $2,047.87 a month |
| 4% | $1,258,540.55 | 65.09% | $2,730.50 a month |
| 5% | $1,006,832.44 | 81.36% | $3,413.12 a month |
Early retirement: testing 55 or 60
Retiring early cuts saving years and adds years of withdrawals. Keep the example the same and change only the retirement age. At 55 the balance is $401,601.83 and the money runs out during age 66. At 60 it's $579,837.82 and runs out around age 74.
One catch: the calculator starts your other income on your retirement date. Social Security and many pensions start later. For an early retirement, enter only the income you'll have at that age, then rerun with the full amount to see the later years.
| Retire at | Projected balance | Target funded | Money runs out |
|---|---|---|---|
| 55 | $401,601.83 | 40.85% | During age 66 |
| 60 | $579,837.82 | 52.13% | During age 74.25 |
| 63 | $714,960.85 | 59.68% | During age 79.50 |
| 65 | $819,148.65 | 65.09% | During age 83.17 |
| 67 | $936,177.60 | 70.80% | During age 86.92 |
Using it as a retirement calculator for couples
The calculator plans around one set of ages. For a couple, enter your combined savings, both sets of contributions, your shared spending and both partners' expected income. Set the plan-through age high enough to cover the partner who's likely to need the money longest.
If your ages are far apart or you'll retire at different times, run a scenario for each retirement date. Use each person's own Social Security estimate rather than an average.
Fees, returns and what the calculator leaves out
Small fees add up over 30 years. In the example, a 0.40% fee costs $73,894.74 by 65 compared with no fee, and a 1% fee costs $172,089.53. Returns matter even more: at 4% before retirement the balance is $553,629.80, and at 8% it's $1,238,662.08.
The model uses smooth returns, so it can't show the damage a market drop just after you retire can do. It also leaves out taxes, healthcare costs, required minimum distributions and contribution limits. Check current IRS limits and your plan's matching and vesting rules before you act on a solved contribution.
Sources
These public references support the planning steps, benefit estimates, withdrawal guidance, fee warnings and limits mentioned on this page.