Plan your retirement by calculating projected savings, required monthly contributions, and how long your money will last.
| Age | Year | Contributions | Interest Earned | Balance |
|---|
Retirement planning is the process of setting savings goals and building the financial resources needed to support yourself once you stop working. Thanks to compound interest, the earlier you start saving, the less you need to contribute each month to reach the same goal. Waiting even 10 years to start can dramatically reduce your retirement savings — making time one of the most powerful factors in retirement planning.
Compound interest means you earn returns not just on your original contributions, but also on the interest you've already earned. This snowball effect accelerates the growth of your savings the longer you leave it invested. For example, $500/month invested at 7% annual return for 35 years grows to over $900,000 — but if you wait 10 years and invest for only 25 years, you end up with less than half that amount despite contributing the same monthly amount for longer.
| Rule | What It Means |
|---|---|
| Rule of 25 | Save 25× your expected annual expenses to retire comfortably |
| 4% Rule | Withdraw 4% of your savings per year — a historically sustainable rate |
| 10% Rule | Save at least 10–15% of your income for retirement each year |
| 100 minus age | Keep that % of your portfolio in stocks (e.g. 70% stocks at age 30) |
A common benchmark is the Rule of 25 — multiply your expected annual spending by 25. If you plan to spend $40,000 per year in retirement, you need about $1,000,000 saved. This aligns with the 4% withdrawal rule, which suggests withdrawing 4% of your savings annually is sustainable for a 30-year retirement.
The 4% rule states that you can withdraw 4% of your retirement portfolio in the first year and adjust for inflation each subsequent year, with a high probability that your money will last at least 30 years. It's based on historical stock and bond market data from the Trinity Study.
The US stock market has historically returned about 10% per year before inflation and about 7% after inflation. For conservative planning, many financial advisors recommend using 5–7% as your expected annual return. Always use a lower estimate to build in a safety margin.
Inflation erodes the purchasing power of your money over time. $3,000/month today will buy less in 30 years. When planning for retirement, it's important to account for inflation so that your withdrawals maintain your standard of living. This calculator adjusts your savings goal for inflation.
As early as possible. Thanks to compound interest, money saved in your 20s and 30s grows far more than money saved later. Starting at 25 versus starting at 35 can mean the difference of hundreds of thousands of dollars at retirement, even if you contribute the same monthly amount.
Most financial advisors recommend saving 10–15% of your gross income for retirement. If you're starting late, aim for 15–20%. Use this calculator to find the exact monthly contribution needed to reach your specific retirement goal.