How much do I need to retire?

A common guideline is to save 25 times your annual expenses (the 4% rule). If you spend $50,000 per year, you'd need $1.25 million. However, this depends on your desired lifestyle, expected Social Security benefits, healthcare costs, and how long you expect to be retired.

When should I start saving for retirement?

The earlier the better, compound interest makes a dramatic difference. Starting at 25 and saving $500/month at 7% gives you about $1.2 million by 65. Starting at 35 with the same amount gives you about $567,000. Those 10 extra years nearly double your total.

What is the 4% rule for retirement withdrawals?

The 4% rule suggests you can withdraw 4% of your retirement savings in the first year, then adjust for inflation annually, with a high probability your money lasts 30 years. With $1 million saved, that means $40,000/year in withdrawals. Some financial planners now recommend 3.5% for added safety.

How much of my income should I save for retirement?

A common guideline is to save 15% of your gross income (including employer match) for retirement. If you start in your 20s, 10-12% may suffice. Starting in your 30s or 40s requires 15-25% to catch up. Use this calculator to find the exact monthly amount needed to reach your specific goal.

Should I prioritize paying off debt or saving for retirement?

Generally, contribute enough to get your full employer 401(k) match first (it is free money). Then pay off high-interest debt (above 7-8%). After that, maximize retirement contributions. Low-interest debt like a mortgage (3-5%) can coexist with retirement saving since investment returns historically exceed the interest rate.

Retirement Savings Calculator

Figure out if you're on track for retirement. Enter your current age, retirement goal age, existing savings, and monthly contributions to see your projected retirement fund and whether you'll meet your target.

By InstaCalcs Team·Reviewed April 25, 2026·Report an issue

Current Age

Retirement Age

Current Savings ($)

Monthly Contribution ($)

Expected Annual Return (%)

Retirement Fund

$2,376,362.19

Your Contributions

$470,000.00

Investment Gains

$1,906,362.19

Savings Growth (Every 5 Years)

Age 35

$142,474.16

Age 40

$273,567.88

Age 45

$459,409.63

Age 50

$722,863.60

Age 55

$1,096,342.60

Age 60

$1,625,795.87

Age 65

$2,376,362.19

Your Contributions Investment Growth

You have 35 years until retirement. At the projected rate, your investments will earn $1,906,362.19 in returns, that's 80% of your retirement fund coming from compound growth.

How to use

Enter your current age, the age at which you plan to retire, your current retirement savings, and how much you contribute monthly. The calculator assumes a default 7% annual return (a common long-term estimate after inflation for a stock-heavy portfolio). It shows your projected retirement fund, total contributions, and investment gains.

Formula

FV = PV(1+r)^n + PMT × [((1+r)^n - 1) / r]

This is the standard future value formula combining a present lump sum with regular contributions. PV is your current savings, PMT is your monthly contribution, r is the monthly return rate, and n is the number of months until retirement. The key insight is that even small monthly increases have an outsized impact over decades due to compounding.

When this calculator helps

Retirement planning is one of the most important financial exercises you can do, yet most people avoid it because it feels overwhelming. This calculator simplifies the process by showing you exactly where you stand based on your current savings rate. Whether you are 25 and just starting or 50 and wondering if you are behind, it provides a clear projection of your retirement fund. Financial advisors use these same calculations to build retirement plans. By adjusting inputs like contribution amount and retirement age, you can see how different strategies affect your outcome and find a plan that works for your situation.

Examples

Example 1: Starting at 25 with Modest Savings

Age 25, $2,000 current savings, contributing $400/month at 7% return, retiring at 65. After 40 years: total contributions of $194,000 grow to approximately $1,055,000. Using the 4% rule, this supports about $42,200/year in retirement income plus Social Security benefits.

Example 2: Playing Catch-Up at 45

Age 45, $100,000 saved, contributing $1,500/month at 7% return, retiring at 67. After 22 years: $100,000 grows to $458,000, plus $396,000 in contributions becomes approximately $950,000 total. To reach $1.5 million, contributions need to increase to about $2,200/month.

Example 3: Impact of Delaying Retirement by 3 Years

Age 55, $400,000 saved, contributing $2,000/month at 6% return. Retiring at 65 gives $930,000. Retiring at 68 instead gives $1,140,000, three extra years add $210,000 (3 more years of contributions plus 3 more years of compounding on a larger balance). Delaying also shortens the withdrawal period.

Things to watch

•Use a 7% return for long-term projections (historical stock market average after inflation) or 5-6% for a more conservative bond-heavy portfolio.
•Healthcare costs in retirement average $315,000 per couple (Fidelity estimate), factor this into your savings target beyond regular living expenses.
•Increase contributions by at least 1% annually, especially when you get a raise, this dramatically accelerates savings with minimal lifestyle impact.
•Social Security benefits replace roughly 40% of pre-retirement income for average earners, do not count on it as your sole income source.
•Consider catch-up contributions after age 50: the 401(k) limit increases by $7,500/year and IRA by $1,000/year above standard limits.

Sources and methodology

Last reviewed: April 25, 2026. We review formulas, default assumptions, and examples against public references when a formal source applies.

Method: This calculator uses the formula explained on this page, then checks default assumptions and examples against the references listed below.

•Compound Interest Calculator, Investor.gov
•What is compound interest?, Investor.gov

Found something off? Send a correction with the page URL, inputs, result, and expected result.

Common questions

How much do I need to retire?: A common guideline is to save 25 times your annual expenses (the 4% rule). If you spend $50,000 per year, you'd need $1.25 million. However, this depends on your desired lifestyle, expected Social Security benefits, healthcare costs, and how long you expect to be retired.
When should I start saving for retirement?: The earlier the better, compound interest makes a dramatic difference. Starting at 25 and saving $500/month at 7% gives you about $1.2 million by 65. Starting at 35 with the same amount gives you about $567,000. Those 10 extra years nearly double your total.
What is the 4% rule for retirement withdrawals?: The 4% rule suggests you can withdraw 4% of your retirement savings in the first year, then adjust for inflation annually, with a high probability your money lasts 30 years. With $1 million saved, that means $40,000/year in withdrawals. Some financial planners now recommend 3.5% for added safety.
How much of my income should I save for retirement?: A common guideline is to save 15% of your gross income (including employer match) for retirement. If you start in your 20s, 10-12% may suffice. Starting in your 30s or 40s requires 15-25% to catch up. Use this calculator to find the exact monthly amount needed to reach your specific goal.
Should I prioritize paying off debt or saving for retirement?: Generally, contribute enough to get your full employer 401(k) match first (it is free money). Then pay off high-interest debt (above 7-8%). After that, maximize retirement contributions. Low-interest debt like a mortgage (3-5%) can coexist with retirement saving since investment returns historically exceed the interest rate.