How to Use the Retirement Calculator
Enter your current age and the age at which you plan to retire.
Enter your planned monthly contribution to your retirement account.
Enter the expected average annual return on your investments (e.g. 6 to 8% for a diversified portfolio).
Optionally enter your current savings balance to include existing funds in the projection.
Optionally enter an annual inflation rate to see the inflation adjusted value of your retirement fund.
Click Calculate to see your projected balance, growth, and estimated monthly income.
How the Retirement Calculator Works
The calculator compounds your savings monthly using two formulas. Your existing balance grows via FV = P x (1 + r)^n, where r is the monthly return rate (annual rate divided by 12). Your ongoing contributions grow via FV = PMT x [((1 + r)^n minus 1) / r], the future value of a monthly annuity. The total at retirement is the sum of both. If you supply an inflation rate, the nominal total is deflated by (1 + i)^years to express its real purchasing power in today's money. Finally, your estimated monthly income is derived by treating the nest egg as an annuity over your chosen retirement duration, which produces a fixed withdrawal that exhausts the balance in exactly that many months.
Worked Example
- Inputs: current age 30, retirement age 65, monthly contribution 500, annual return 7%, current savings 15,000, inflation 2.5%, retirement duration 20 years.
- Savings horizon: 35 years = 420 months. Monthly return rate r = 7 / 12 / 100 = 0.005833.
- FV of existing savings: 15,000 x (1.005833)^420 is roughly 15,000 x 11.256 which equals about 168,840.
- FV of contributions: 500 x [(1.005833)^420 minus 1] / 0.005833 is roughly 500 x 1,757.6 which equals about 878,800.
- Total at retirement (nominal): 168,840 + 878,800 equals roughly 1,047,640.
- Total contributed: 15,000 + (500 x 420) = 225,000. Investment growth is roughly 822,640.
- Inflation adjusted total: 1,047,640 / (1.025)^35 equals roughly 441,380 in today's money.
- Estimated monthly income (nominal): roughly 8,120 per month drawn over 20 years.
When to Use This Calculator
- Estimating whether your current savings rate is on track for your retirement goal.
- Comparing the impact of starting to save at 25 vs. 35 vs. 45.
- Seeing how a higher or lower expected return changes your projected nest egg.
- Understanding how much monthly income your savings can sustain over a 15, 20, or 30 year retirement.
- Checking how inflation erodes the real value of a large nominal balance.
- Setting a concrete savings target before meeting with a financial advisor.
Important Note
Results are estimates based on constant monthly compounding at a fixed annual return. Real investments fluctuate, and some years you earn more while others produce losses. The calculator does not account for taxes, account fees, Social Security, pension income, variable withdrawals, or sequence of returns risk. Use it as a planning guide, not a guarantee. Consult a qualified financial advisor for personalized retirement planning.
Starting Early vs. Starting Late
Key Features
Compound Growth Projection
Uses the future value formula to project both your existing savings and your regular contributions compounding monthly over your entire savings horizon.
Inflation Adjustment
Enter an optional inflation rate to see the real purchasing power of your projected nest egg and monthly income in today's money.
Sustainable Monthly Income Estimate
Calculates how much you can withdraw each month over your chosen retirement duration using a standard present value of annuity formula, so your balance reaches zero at the end of the period.
Year by Year Table
A detailed annual breakdown shows your starting balance, annual contribution, investment growth, and ending balance for every year up to retirement.
Balance Growth Chart
A line chart plots your projected total balance alongside total contributions over time, making it easy to see how much of your nest egg comes from investment growth versus what you put in.
PDF Export
Download a formatted PDF report with all summary results and the year by year table for your records.
Privacy and Security
All calculations run entirely in your browser using JavaScript. No data is sent to any server, stored, or logged. You can safely use it with your personal financial details.
Frequently Asked Questions
What formula is used for the future value of contributions?
FV = PMT x [((1 + r)^n minus 1) / r], where PMT is the monthly contribution, r is the monthly return rate (annual % / 12 / 100), and n is the total number of months until retirement. If the annual return is 0%, this simplifies to PMT x n.
How is the existing savings balance projected?
FV_existing = P x (1 + r)^n, where P is your current savings, r is the monthly return rate, and n is the number of months until retirement. Both existing savings and contributions are compounded monthly.
How is the estimated monthly income calculated?
The monthly withdrawal uses the present value of an annuity formula: W = Total x (r / (1 minus (1 + r)^minus n)), where n is the number of months in retirement. This produces a payment that draws down the balance to zero by the final month.
What does inflation adjustment show?
The inflation adjusted total is your projected nominal balance divided by (1 + inflation rate)^years. It represents the equivalent purchasing power in today's money, assuming prices rise at the specified annual rate between now and retirement.
What does Total Contributed include?
Total Contributed is the sum of your current savings balance plus all monthly contributions made over the savings period. Investment Growth is the difference between your projected total and what you actually put in.
Can I use this for any currency?
No currency symbol is assumed anywhere. Enter values in any currency and interpret the results in the same currency.