Retirement Savings Calculator
Find out how much you need to retire, whether you are on track, and how much more to save each month to close any gap.
Retirement Savings Calculator
To retire at 65 with $70,000 a year in today’s dollars and $2,000 a month from Social Security, a 35-year-old needs about $2.79 million in future dollars at a 4% withdrawal rate. Saving $800 a month on top of $60,000 today projects about $1.25 million, a shortfall of about $1.54 million, which closes with roughly $1,444 more saved per month.
How to use this retirement savings calculator
- Enter your current age, retirement age, savings so far and how much you save each month.
- Set an expected annual return and inflation rate. Conservative defaults are 6.5% and 3%.
- Enter the yearly income you want in retirement, in today’s dollars.
- Add your expected Social Security benefit per month. The average retired worker gets about $2,032 in 2026.
- Pick a safe withdrawal rate. The 4% rule is the common starting point. Read whether you are on track and how much extra to save.
The math behind the result
Projected savings = current savings × (1 + i)n + monthly saving × [((1 + i)n − 1) ÷ i], with i the monthly return and n the months until retirement.
Income needed from savings = desired income − Social Security. That figure is inflated to the retirement date, then divided by the withdrawal rate to get the nest egg you need.
Extra monthly saving = shortfall ÷ [((1 + i)n − 1) ÷ i].
Worked example
Age 35, retire at 65, $60,000 saved, $800 a month, 6.5% return, 3% inflation, $70,000 a year wanted, $2,000 a month from Social Security, 4% withdrawal rate:
- Projected savings at 65: $1,250,483 (worth $515,182 in today’s dollars)
- Savings needed: $2,791,352 (income gap $46,000 a year, inflated to $111,650 by age 65)
- Shortfall: $1,540,869
- Extra to save: about $1,444 a month
- Income the projected savings can support: about $44,607 a year in today’s dollars, with Social Security added
How much do you need to retire?
A common starting point is the 4% rule: you can withdraw about 4% of your portfolio in the first year of retirement and adjust for inflation afterward, and the money has historically lasted 30 years. That makes the target roughly 25 times the yearly income your savings must provide. The calculator subtracts Social Security first, because it covers part of your spending. Retiring earlier, living longer, or having a bear market early in retirement all argue for a lower withdrawal rate such as 3.5%.
Why inflation changes the target
Spending $70,000 a year today costs about $170,000 in 30 years at 3% inflation. That is why the nest egg needed is larger than a today’s-dollars number suggests. The “same amount in today’s dollars” figure shows what your projected balance could buy now.
Social Security in your plan
The Social Security Administration pays the average retired worker about $2,032 a month in 2026 after a 2.8% cost-of-living increase. Your benefit depends on your earnings history and the age you claim: full retirement age is 67 for people born in 1960 or later, and claiming at 62 permanently reduces it while waiting until 70 increases it. Check your estimate in your account at ssa.gov.
What to do if you are behind
- Raise your monthly savings, even by 1% of pay a year.
- Capture any employer match first; it is an instant return.
- Work two to three years longer, which adds savings, shortens the withdrawal period and raises Social Security.
- Lower the target by planning a smaller retirement budget.
- Use catch-up contributions from age 50: $8,000 extra to a 401(k) and $1,100 extra to an IRA in 2026.
Limits of any retirement calculator
Returns are uncertain, inflation varies, and health costs and taxes change. Treat the result as a direction, not a promise, and re-run it every year. A fee-only financial planner can build a plan around your exact situation.
Key terms
- Nest egg
- The savings you need at retirement to fund spending.
- Withdrawal rate
- The percentage of your portfolio you take out each year.
- 4% rule
- A guideline that a 4% first-year withdrawal, adjusted for inflation, historically lasted 30 years.
- Full retirement age
- The age you receive your full Social Security benefit, 67 for people born in 1960 or later.
- Catch-up contribution
- Extra retirement contributions allowed from age 50.
Frequently asked questions
How much money do I need to retire?
A rough rule is 25 times the yearly income you need from savings. If you want $70,000 a year and Social Security provides $24,000, you need $46,000 from savings, so about $1.15 million in today’s dollars, or more in future dollars after inflation.
Am I saving enough for retirement?
Compare your projected savings with the nest egg required. In the example, $800 a month at age 35 projects $1.25 million against a need of $2.79 million, so more saving or later retirement is needed.
What is the 4% rule?
It says you can withdraw 4% of your portfolio in the first year of retirement and increase that amount with inflation each year, and your money should last about 30 years based on historical data. It is a guideline, not a guarantee.
How much will Social Security pay?
The average retired worker receives about $2,032 a month in 2026. Your amount depends on your earnings and when you claim. See ssa.gov for your estimate.
What return should I assume?
Many planners use 5–7% a year before inflation for a diversified portfolio over decades. Use a lower number to be conservative and test several.
How much should I save each month?
The calculator shows the extra monthly amount needed to reach your target. A common guideline is to save 15% of gross income, including any employer match, over a career.
Can I retire early?
Lower the retirement age and watch the gap grow: you save for fewer years and need the money to last longer. Remember Medicare begins at 65, so plan for health insurance before then.
Sources and further reading
- SSA: 2026 cost-of-living adjustment and average benefit
- IRS: 2026 401(k) and IRA limits
- Investor.gov: Invest for your goals
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Figures in the examples are illustrative and use the inputs shown. Market rates and program rules change; confirm current terms with your lender or the linked official sources before making a decision.
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Built by Abdul Rahman · Last reviewed: · Report an error
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Results depend on the figures you enter and on simplified assumptions; actual rates, taxes, and outcomes will differ. Consult a qualified professional before making financial decisions.