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Retirement Savings Calculator

Project retirement savings with monthly contributions and a constant-return scenario, then compare the result with a 4% first-year withdrawal planning target.

Planning estimate — no independent professional review is claimed. Check the documented method and sources before using the result for a financial decision.

Last updated August 24, 2026

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Retirement Savings Calculator

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This calculator answers two separate planning questions: what could your current savings and monthly contributions grow to, and how does that scenario compare with a portfolio target based on your desired annual retirement income?

Use several return and contribution scenarios instead of treating one result as a forecast. The tool does not model Social Security, a pension, taxes, fees or inflation.

How It Works

The projection compounds current savings monthly and treats each monthly contribution as arriving at month-end. The result uses a constant annual return entered by the user.

  1. Projected balance = future value of current savings + future value of monthly contributions.
  2. Planning target = desired annual income ÷ 4%.
  3. First-year income illustration = projected balance × 4%.
  4. Additional monthly amount solves for the contribution needed to close the modeled gap by retirement age.

The 4% figure is a historical planning heuristic, not a guaranteed safe withdrawal rate for every retirement length, asset mix or market path.

Understanding Your Results

“Projected savings” separates your contributed dollars from modeled growth. “Target” is the amount implied by the desired income and 4% heuristic. A shortfall is not a recommendation to take more investment risk: test a later retirement date, a different contribution, lower spending or income from Social Security and pensions in a fuller plan.

Use a range, not one retirement forecast

Run a conservative, middle and optimistic return scenario. Then compare the monthly contribution needed in each. Inflation matters because the desired income is entered in nominal dollars; if your target is stated in today’s purchasing power, increase it over time or use a lower real-return assumption.

Assumptions Used

  • Monthly compounding
  • Contributions arrive at month-end
  • Constant return entered by the user
  • No taxes, fees, inflation, Social Security or pension income

Pros and Considerations

Benefits

  • Separates contributions from modeled growth
  • Shows the gap to an income-based target
  • Makes the return and contribution assumptions editable

Considerations

  • Uses a constant return rather than volatile markets
  • Does not include inflation, tax, fee or benefit detail
  • The 4% heuristic may not fit very long or unusual retirements

Important Notes

  • Run multiple return scenarios
  • Account limits and employer-match rules are outside this model

Warnings

  • Investment returns are not guaranteed
  • Do not interpret a 4% illustration as an approved personal withdrawal plan

Frequently Asked Questions

What does the 4% target mean?
It divides desired first-year retirement income by 4%. The result is a planning benchmark derived from historical withdrawal research, not a guarantee.
Does the calculator include Social Security or a pension?
No. Add those income sources in a fuller retirement-income plan rather than treating this portfolio-only result as complete.
Does it account for inflation?
No. Contributions, balances and desired income are nominal. You can approximate a real-return scenario by entering an expected return after inflation.
When are monthly contributions invested?
The model treats contributions as arriving at the end of each month.
Does it enforce IRA or 401(k) limits?
No. The contribution is a portfolio-wide planning input; actual account limits and eligibility rules can apply.
How often should I update the estimate?
Revisit it after major changes to income, spending, savings, retirement age or expected retirement income, and at least annually.

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References

  1. Bengen (1994), Determining Withdrawal Rates Using Historical Data
  2. U.S. Department of Labor, Savings Fitness worksheets
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