Retirement Income Calculator — Monthly Income & Nest Egg Needed
Estimate whether your current savings path supports your desired monthly retirement income. Enter age, contributions, return assumptions, and target monthly income to see projected balance, nest egg required, and any savings gap.
Retirement Income Plan
Nest Egg Needed
$1,500,000
$173.13/mo extra needed
Methodology and limitations
Last reviewed:
Methodology
Projects retirement balance and compares it to nest egg required from target monthly income and withdrawal rate.
Limitations
Does not model Social Security, pensions, taxes, or healthcare costs.
Official sources
How Retirement Income Planning Works
Estimate whether your current savings path supports your desired monthly retirement income. Enter age, contributions, return assumptions, and target monthly income to see projected balance, nest egg required, and any savings gap.
Method used
This calculator projects retirement savings to your target age using monthly compounding and contributions, then compares the projected balance against the nest egg needed to support your desired monthly income at the selected withdrawal rate (for example 4%).
Nest egg needed = desired annual income ÷ withdrawal rate; savings gap = nest egg needed − projected balance
Practical example
Example: wanting $5,000 per month at a 4% withdrawal rate requires a $1.5 million nest egg. If projections show $1.19 million at 65, the gap is $310,000 and extra monthly savings may be needed to close it.
- Age 30 to 65, $25,000 current savings
- $500 monthly contribution, 7% return
- $5,000 desired monthly income, 4% withdrawal rate
The output shows projected balance at retirement, nest egg required, savings gap, on-track status, and additional monthly contribution needed to close a shortfall.
Assumptions
- Withdrawal rate applies to the projected balance at retirement (static 4% rule style).
- Return and contribution assumptions are constant until retirement.
- Desired income is pre-tax unless you adjust manually.
What this includes
- Savings projection, nest egg target, gap analysis, on-track flag, and additional monthly savings needed.
What this excludes
- Social Security, pensions, Medicare costs, RMD rules, sequence-of-return risk, inflation-adjusted spending, and tax-bracket planning in retirement.
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Frequently Asked Questions
How much money do I need to retire?
A common planning shortcut is the 4% rule: multiply desired annual income by 25 to estimate required nest egg. For $5,000 per month ($60,000 per year), that implies about $1.5 million in invested assets. Actual needs depend on Social Security, pensions, healthcare costs, inflation, and how long you live. This calculator shows nest egg required for your entered monthly income target using your chosen withdrawal rate.
What withdrawal rate should I use?
The traditional 4% rule assumes a 30-year retirement with a balanced portfolio, but some planners use 3% to 3.5% for longer retirements or lower expected returns. A higher withdrawal rate depletes assets faster. Enter the rate that matches your risk tolerance and income sources. The calculator converts that rate into required savings and monthly income from your projected balance.
Does this include Social Security?
No. Enter only the monthly income you want from portfolio withdrawals. Subtract expected Social Security, pension, or rental income from your total spending need before using the calculator, or treat the result as the portfolio portion only. Combining guaranteed income with portfolio withdrawals reduces the nest egg required to hit the same lifestyle.
What if I am behind on retirement savings?
The calculator shows a savings gap when projected balance at retirement falls short of nest egg required. It also estimates additional monthly contributions needed to close that gap given your return assumption and years remaining. Increasing contributions, delaying retirement, or lowering target spending are the main levers — small contribution increases compound significantly over decades.
How does inflation affect retirement income planning?
This calculator works in today's dollars for clarity. Inflation erodes purchasing power over a 20- to 30-year retirement, so $5,000 per month today buys less later unless withdrawals rise. Many retirees combine inflation-adjusted Social Security with portfolio withdrawals that may need periodic increases. Use conservative return assumptions and revisit the plan annually.