Retirement Calculator

Q: How many years should I plan for in retirement?

Choose a retirement horizon that matches the age you expect to retire and the longevity risk you want to stress-test. Longer horizons produce smaller modeled monthly withdrawals. The slider is a scenario input, not a life-expectancy forecast.

Q: What is the 4% rule and how does it relate?

The 4% rule is a historical planning framework based on U.S. stock-and-bond withdrawal research, commonly tested over 30-year periods. From $691,150, a 4% first-year withdrawal is about $27,646 a year, or $2,304 a month before taxes. It is a stress-test reference, not a guarantee, while this calculator separately assumes constant returns during drawdown.

Q: How much should I have saved by age?

There is no official federal savings-by-age schedule. Salary-multiple benchmarks are private-sector rules of thumb, not requirements. A more transparent target starts with expected retirement spending, retirement age, Social Security or pension income, taxes, healthcare costs, and the return assumptions you choose to model.

Q: What is sequence-of-returns risk?

Sequence-of-returns risk is the danger that poor returns early in retirement can damage a portfolio more than the same average returns arriving in a different order. This calculator assumes a constant return and does not model that path risk, so compare the result with multiple withdrawal-rate and return scenarios rather than treating one rate as safe.

Two questions, one tool: how big will my nest egg be at retirement, and what fixed monthly withdrawal does this model estimate afterwards.

Starting with $10,000 and adding $500 every month at a 7% annual return could grow to about $691,150 in 30 years. At retirement, under the same constant-return assumption, a 25-year drawdown model estimates roughly $4,885 per month (about $58,600 a year). This calculator models both phases: growing your nest egg before retirement, then drawing it down afterward. Adjust current savings, monthly contributions, return or retirement horizon to model your own number.

Your plan

Calculations run in your browser. Inputs are not stored.

Current savings

Monthly contribution

Annual return

Illustrative assumptions only. Adjust the rate for your own model.

Years to retirement

30 years

Years in retirement

25 years

Compound frequency

How often interest is credited to your balance — your monthly contribution stays the same.

Nest egg after 30 years of saving

$691,150

You invested$190,000

Investment growth$501,150

Estimated fixed monthly withdrawal for 25 years

$4,885/mo

About per year$58,619

Fixed nominal withdrawal under a constant-return drawdown model; not a guarantee of sustainable spending.

ContributionsGrowth

Show yearly breakdown

Year	Contributions	Growth	Balance

The default 7% is an illustrative nominal annual return before inflation, not a forecast or a historical real return. If inflation adjustment is enabled, it is applied once to the nominal result. Do not subtract inflation again from an already real return.

How this calculation works

The two stages

This tool runs in two phases, both using the same engine as the rest of the site:

Accumulation: FV = P·(1+i)^N + M·( ((1+i)^N − 1) / i )
Withdrawal: W = FV·i / (1 − (1+i)^−N)

Accumulation: current savings + monthly contributions compound at your return until retirement → nest egg FV.
Withdrawal: at retirement the balance keeps earning the same return while you draw it down to zero over your chosen retirement years. The monthly amount is the annuity payment W = FV·i / (1 − (1+i)^−N).

Assumptions

Contributions are added at the end of each month (ordinary annuity).
The annual return is a nominal rate; results are pre-tax and pre-inflation.
Returns are constant for the whole period — no market volatility is modeled.
The withdrawal is a fixed nominal amount, not inflation-adjusted, and draws the balance to zero.
Fees and taxes are not included, so real-world results will differ.

View the formula →

Educational purposes only. Not financial advice. See the full methodology and disclaimer.

Worked examples

See how retirement planning changes with different timelines and withdrawal periods. All examples assume $10,000 starting savings, $500/month contributions, and a 7% annual return.

Example 1: 30 years of saving + a 25-year drawdown

Years to retirement: 30 · Years in retirement: 25

Balance at retirement

$691,150

Monthly withdrawal

$4,885

Annual income

$58,619

After 30 years of saving $500/month (plus your $10,000 start), you'd have $691,150 at retirement. Under the same constant 7% return assumption during drawdown, the model estimates roughly $4,885 per month for 25 years while the balance is drawn to zero. Note: this is a nominal figure. As a separate illustration, at a constant 3% inflation rate, $4,885 in 30 years would have roughly the purchasing power of $2,000 today.

Example 2: The impact of retiring 5 years later

30 years vs 35 years to retirement · same contributions · 25 years of withdrawals

30-year accumulation

$691,150

$4,885/month

35-year accumulation

$1,015,589

$7,178/month

Adding 5 more accumulation years changes this modeled result substantially. Your balance grows from $691,150 to $1,015,589 (a 47% increase), and the fixed monthly withdrawal estimate rises from $4,885 to $7,178 (also about 47%). In this example, both cases still use the same 25-year withdrawal horizon, so the difference comes from 5 more years of compounding and 5 more years of contributions — not fewer withdrawal years.

Example 3: How withdrawal period affects monthly income

Same $691,150 balance · different retirement lengths · 7% return during withdrawals

20-year retirement

$5,358/mo

25-year retirement

$4,885/mo

30-year retirement

$4,598/mo

With the same starting balance and constant-return assumption, a longer withdrawal horizon produces a lower modeled monthly amount. Stretching from 20 to 30 years reduces the estimate from $5,358 to $4,598 (a 14% reduction). This is why planning for a long retirement is important — if you retire at 60 and live to 95, that's 35 years of withdrawals. A separate 4% withdrawal-rate benchmark is often used as a historical stress-test reference; it would imply about $2,304/month in the first year from this balance, before considering taxes and other plan details. Try our 4% Rule calculator to see the difference.

All examples are hypothetical and assume a constant 7% annual return with no taxes, fees, or inflation. Actual investment results will vary, and market downturns early in retirement can significantly reduce projected withdrawal amounts. See full disclaimer.

Retirement planning, explained

How is the monthly withdrawal calculated?

At retirement, your balance keeps earning the same assumed return while you draw it down to zero over the withdrawal years you choose. The monthly amount is the annuity payment W = FV·i / (1 − (1+i)^−N), where N is your retirement months.

Is the withdrawal amount guaranteed?

No. It assumes a constant return and ignores taxes, fees and volatility. Real market drawdowns early in retirement can force lower actual withdrawals. Treat the result as a planning estimate, not a promise — many planners also use a conservative withdrawal-rate rule (such as the 4% Rule) as a second check.

Should I adjust for inflation in retirement?

For a realistic plan, yes. This tool returns a fixed nominal withdrawal, which loses purchasing power over a long retirement. If you want today's purchasing power maintained, plan for a lower initial withdrawal or use inflation-adjusted goals elsewhere on this site.

How many years should I plan for in retirement?

A common planning assumption is 25–30 years, depending on retirement age and life expectancy. Longer horizons mean smaller projected monthly withdrawals. You can drag the "Years in retirement" slider to see how it changes the number.

What is the 4% rule and how does it relate?

The 4% rule is a widely cited guideline: you can withdraw 4% of your retirement portfolio in the first year, then adjust for inflation each year, with a high probability of your money lasting 30+ years. From a $691,150 portfolio, 4% gives about $27,646/year ($2,304/month) — much more conservative than the $4,885/month this calculator shows at a 7% return assumption. The 4% rule accounts for market volatility and sequence-of-returns risk; this calculator assumes a constant return. Use both as planning references. Try our 4% Rule calculator.

How much should I have saved by age?

Common benchmarks (from Fidelity and others): by age 30, have 1x your annual salary saved; by 40, 3x; by 50, 6x; by 60, 8x; by retirement (67), 10x. These are rough guidelines — your actual target depends on your desired retirement lifestyle, expected Social Security, health costs, and other income sources. If you earn $80,000/year, the 10x benchmark suggests $800,000 at retirement. This calculator can help you see if your current savings rate is on track.

What is sequence-of-returns risk?

Sequence-of-returns risk is the danger that poor investment returns early in retirement can permanently damage your portfolio, even if average returns over the full period are fine. If the market drops 30% in your first two years of retirement and you're still withdrawing money, you're selling depressed assets to fund living expenses — leaving less to recover when the market rebounds. This calculator assumes a constant 7% return every year, which does not model this risk. This is why many planners recommend a conservative withdrawal rate (like 4%) and keeping 1–2 years of expenses in cash during retirement.