Retirement Calculator – How Much Do You Need to Retire?
Your Information
Your Retirement Plan
Years Until Retirement: 0
Retirement Savings at Retirement: $0
Monthly Retirement Income: $0
Estimated Retirement Duration: 25 years
💡 Tip
Think about downsizing your home in retirement. This can free up equity and reduce ongoing expenses like property taxes and maintenance.
Retirement Calculator – Plan Your Future with Confidence
Meet Robert. He’s 40 years old, has been saving steadily, and wants to retire at 65. But he’s unsure:
- Will his current savings be enough?
- How much should he contribute each year?
- How long will his money last once he retires?
Like many people, Robert feels overwhelmed. This is where the Retirement Calculator comes in — it turns all those numbers into a clear plan, showing him what to expect and helping him make smart financial choices.
What Is a Retirement Calculator?
A Retirement Calculator is a financial tool that estimates:
- How much you’ll have saved by retirement.
- How long your money can support your lifestyle.
- How your contributions, investment growth, and inflation impact your retirement.
It’s not about predicting the future perfectly — it’s about planning wisely and making adjustments along the way.
Key Inputs and What They Mean
- Current Age: Your age today. Helps calculate years until retirement.
- Retirement Age: The age you want to stop working.
- Current Retirement Savings ($): The money you’ve already saved.
- Annual Contribution ($): How much you’ll add to your savings every year.
- Expected Annual Return (%): The growth rate of your investments.
- Annual Retirement Spending (today’s $): How much you plan to spend per year in today’s dollars.
- Expected Inflation Rate (%): The expected annual rise in prices, adjusting your spending for future dollars.
How the Calculator Works – Step by Step
- Enter your current age and retirement age – This determines years until retirement.
- Input your current savings and annual contributions – These are your core savings inputs.
- Set your expected annual return – This is how much you expect your investments to grow each year.
- Enter your expected retirement spending – Use today’s dollars to see what lifestyle you want.
- Include inflation – This adjusts future costs to reflect real purchasing power.
- Press calculate – The tool gives you:
- Years until retirement – How many years you have left to save.
- Retirement savings at retirement – Total money you’ll have accumulated.
- Monthly retirement income – How much you can safely withdraw each month.
- Estimated retirement duration – How long your money will last.
- Years until retirement – How many years you have left to save.
Formula (Simplified)
- Future Value of Savings:
FV = PV × (1 + r)^n + PMT × [((1 + r)^n – 1) / r]
Where:
- PV = current savings
- PMT = annual contribution
- r = expected annual return
- n = years until retirement
- Adjusting for Inflation:
Inflation-adjusted spending = Future spending ÷ (1 + inflation rate)^n
- Monthly Retirement Income (Safe Withdrawal):
Monthly Income ≈ Retirement Savings ÷ Estimated Duration (months)
FAQs
Practical Tips
- Start as early as possible – Compounding works best over longer periods.
- Review annually – Update contributions, returns, and spending goals.
- Be realistic – Don’t underestimate living costs or overestimate returns.
- Use multiple scenarios – Try optimistic, moderate, and conservative assumptions.
