How Much Do I Need to Retire? Savings & Monthly Income Calculator

A common planning shortcut is to multiply your desired annual retirement spending by 25, which assumes a 4% withdrawal rate. This calculator projects your balance at a target retirement age using current savings, monthly contributions, and expected return, then estimates monthly retirement income from your chosen withdrawal rate. Results are illustrative-actual needs depend on lifestyle, healthcare, taxes, inflation, and how long you live.

It grows your current savings and monthly contributions to your target retirement age using the expected annual return you enter, then multiplies the projected balance by your withdrawal rate and divides by 12 to estimate monthly retirement income. For example, $500,000 at a 4% withdrawal rate suggests about $1,667 per month before taxes. Social Security, pensions, and part-time work are not included.

No. The estimate focuses on personal savings and investments only. Social Security, pensions, annuities, rental income, and employer benefits can add substantially to retirement cash flow but are not modeled here. Use this tool to see whether your savings trajectory is on track, then layer in other income sources when building a full retirement plan.

Many planners use 3% to 4% as a starting assumption for sustainable withdrawals from a diversified portfolio, but the right rate depends on your age, risk tolerance, tax bracket, and market conditions. A lower rate suggests more conservative spending; a higher rate increases monthly income but raises the risk of running out of money. Adjust the slider to see how income changes at different rates.

This calculator uses nominal dollars-it does not automatically reduce future spending power for inflation. If you expect 3% annual inflation, a $4,000 monthly income goal in today's dollars may require a higher nominal balance at retirement. For inflation-adjusted buying power comparisons, use the inflation calculator alongside this retirement savings estimate.

Many planners use 6% to 7% for a diversified stock-and-bond portfolio over long horizons, 4% to 5% for a conservative mix, and 8% or higher only if you accept more volatility. Historical U.S. stock returns are higher, but retirement planning usually discounts for bad decades and fees. Enter a return you believe is realistic for your asset allocation, then test a lower rate to see how much your projected balance and monthly income change.

The 4% rule comes from research on sustainable withdrawals over 30-year retirements, but it is a starting point-not a guarantee. Higher bond yields in recent years helped some retirees, while longer lifespans, healthcare costs, and market downturns early in retirement can still strain a plan. Many advisors now suggest 3% to 3.5% for early retirees or longer horizons. Use the withdrawal-rate slider here to compare monthly income at 3%, 4%, and 5% before deciding.

Your retirement savings (or nest egg) is the total lump sum you accumulate through investments and contributions by the time you retire. Your retirement income is the amount you safely withdraw from that nest egg on a regular basis (typically monthly or annually) to cover your living expenses without running out of money during your lifetime.

Compound interest is the process where your investment returns generate their own returns over time. In retirement planning, starting early allows your money to compound for longer. This exponential growth means that a significant portion of your final retirement balance will come from the compounded earnings rather than just your out-of-pocket contributions.