How to use the retirement calculator
- Enter your age, your savings and what you put aside each month. Include an employer contribution if you get one.
- Choose a return and inflation. The calculator grows your savings month by month and also shows the result in today's money, so a future million is not mistaken for today's million.
- Describe the retirement you want: the monthly income in today's money, and any pension or social security you expect.
- Read the checks. You see whether you are on track, how much more to save if not, and until what age the money lasts.
How it is calculated
Savings grow with monthly compounding: each month the balance earns the monthly equivalent of your yearly return, then your deposit is added. Your monthly saving rises each year by the percentage you choose, which mirrors pay rises. The balance at retirement is then divided by (1 + inflation) for every year to show it in today's money.
With a 4 % withdrawal rate the nest egg must be 25 times the yearly income your savings have to provide. The drawdown check then spends that income every month from the balance, with your retirement return after inflation, to show how long it lasts.
Example
Maya is 32, has 25,000 saved and invests 500 a month, rising 2 % a year, at a 6 % return. At 65 she would have about 930,000, or roughly 410,000 in today's money with 2.5 % inflation. She wants 3,000 a month and expects a 1,000 pension, so her savings must supply 2,000 a month: 24,000 a year ÷ 4 % = 600,000 needed. She is about 190,000 short in today's money, and the calculator shows how much more to save each month to close the gap.
More on this: how much to save for retirement and the 4 % rule.
Frequently asked questions
What return should I use?
For a mixed portfolio of shares and bonds, 5 to 7 % before inflation is a common planning range. Use less if you hold mostly bonds or cash. Lower assumptions make a plan safer, not worse.
Why show "today's money"?
Prices rise. At 2.5 % inflation, money buys about half as much after 28 years. Planning in today's money keeps your target honest.
Does it include taxes?
No. Taxes on savings and pensions depend on your country and account type. Enter an after-tax income goal, or lower the return to allow for them.
Sources: Bengen W. (1994), "Determining Withdrawal Rates Using Historical Data", Journal of Financial Planning; Dimson, Marsh and Staunton, UBS Global Investment Returns Yearbook. Calculations are illustrations, not advice.
Guides
More free investing calculators
Last reviewed: 2026-11-08. Results are estimates based on the returns you enter, not advice. See our disclaimer.