How to use this retirement calculator
Fill in the five main inputs: your age, your planned retirement age, your current retirement savings, your monthly contribution and the expected return before retirement. The headline shows your projected balance on the day you retire, in future dollars, with its value in today's money underneath.
- Open "More options" to describe your retirement. Set your desired retirement income and any other retirement income (Social Security, a state or age pension, a defined-benefit pension), both in today's money.
- Add your employer's contribution and how much your contributions rise each year, for example with pay rises.
- Check the assumptions. Return in retirement is usually lower than before, because many people move to a more cautious mix. "Plan until age" is how long the money has to last.
- Read the results. You'll see how long your savings last, the income they can sustain, a 4% rule comparison, and either your surplus or the extra monthly saving that would close the gap.
How the projection works
Saving: balance = balance × (1 + m) + contributionRetired: balance = (balance − withdrawal) × (1 + m)m = (1 + annual return)1/12 − 1 · today's money = amount ÷ (1 + inflation)years Run every month · contributions are added at the end of each month and rise once a year · withdrawals come out at the start of each month and rise with inflation once a year
Before retirement your savings grow at the pre-retirement return and you add your own and your employer's contributions. From your retirement age the calculator switches to the retirement return and withdraws the part of your desired income that other income doesn't cover. That withdrawal rises with inflation every year so your spending power stays the same.
Sustainable income answers the reverse question: what is the largest inflation-linked income your projected savings could pay so the balance reaches exactly zero at your plan-until age? We add your other income to it and show the total in today's money.
Worked example
You are 35 with $50,000 saved, and plan to retire at 67. You save $500 a month and your employer adds $150, with both rising 2% a year. Savings earn 7% a year before retirement and 5% after, and inflation runs at 2.5%.
Over 32 years you and your employer contribute $344,971, and investment growth adds $1,140,157. At 67 your balance is $1,535,128, which is about $696,596 in today's money.
You want $50,000 a year in today's money and expect $20,000 from other income, so savings need to provide $30,000 a year. After 32 years of inflation, that is $66,113 in your first year of retirement. To pay it until 90 you need $1,155,468 at 67, so you have a surplus of $379,659. The money lasts beyond 90, with about $299,872 (today's money) left over.
Your savings could sustain $39,857 a year, which with other income makes $59,857 a year to age 90. The 4% rule gives a more cautious $61,405 in year one, about $27,864 in today's money. On these numbers you could retire as early as 64.
What makes the biggest difference
Small changes to the inputs move the result a long way, because compounding works over decades. Using the example above:
| Change | Balance at 67 | Result |
|---|---|---|
| Example as above | $1,535,128 | Surplus of $379,659 |
| Save $100 more a month | $1,704,261 | $169,133 more at retirement |
| Return of 6% instead of 7% | $1,237,837 | Surplus shrinks to $82,369 |
| No yearly increase in contributions | $1,322,710 | $212,418 less at retirement |
| Start at 45 instead of 35 | $685,750 | Money runs out at 83 |
Time is the biggest lever. Starting ten years later cuts the balance by more than half, and the plan needs another $304 a month to work. Return and fees come next: one percentage point less return costs nearly $300,000 by 67. That is why low-cost funds matter. To see how regular saving compounds on its own, try the compound interest calculator, or set a specific target with the savings goal calculator.
How long you plan for matters too. Planning to 95 instead of 90 lowers the sustainable income in the example from $59,857 to $54,560 a year. Running out of money at 88 is a far worse outcome than leaving some behind, so many planners use an age beyond average life expectancy.
The 4% rule and its limits
The 4% rule says you can withdraw 4% of your savings in your first year of retirement and raise that amount with inflation each year, and your money should last about 30 years. It came from research in the 1990s that tested withdrawals against historical US stock and bond returns, including bad periods.
It is a good reality check, which is why we show it, but it has limits. It assumes a 30-year retirement, so it may be too generous for an early retiree and too cautious for someone retiring late. It ignores fees and taxes. And it is based on one country's history.
Our sustainable income uses steady average returns instead, which is why it is usually higher than the 4% figure. Real markets don't move in a straight line. A crash early in retirement, when your balance is largest, does far more damage than the same crash later. This is called sequence-of-returns risk. A cash buffer, a cautious return assumption and flexible spending in bad years all help.
Tip: run the calculator twice: once with your best-guess return and once with a return 1 to 2 points lower. If both versions work, your plan has a healthy margin. Check how much prices may rise along the way with the inflation calculator.
Retirement savings in different countries
The maths is the same everywhere, but the accounts and government pensions have different names:
| Country | Main savings accounts | Employer contribution | Government pension |
|---|---|---|---|
| United States | 401(k), 403(b), IRA, Roth IRA | 401(k) match | Social Security |
| Australia | Superannuation | Super guarantee | Age Pension |
| United Kingdom | Workplace pension, SIPP, ISA | Employer pension contribution | State Pension |
| Canada | RRSP, TFSA, workplace plans | Employer plan match | CPP and OAS |
Rules on when you can access your savings, how withdrawals are taxed and how government pensions are means-tested differ a lot between countries and change over time. Use the calculator to size your savings, then check the rules that apply to you.
Frequently asked questions
How much money do I need to retire?
What is the 4% rule?
What rate of return should I assume?
Why does the calculator show today’s money?
Should I include Social Security, the Age Pension or a state pension?
Does this calculator account for tax?
This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.