Retirement Calculator
Project savings and income using the 4% rule.
The 4% rule comes from US studies (the 1998 Trinity study) showing a 4% first-year withdrawal, raised each year with inflation, lasted 30 years in most historical periods. It is a rule of thumb, not a guarantee. Longer retirements may need a lower rate.
Balance by age
About this tool
Retirement Calculator projects how large your savings could be when you retire, in future money and in today's money after inflation. It then estimates the yearly income those savings could support at a chosen withdrawal rate, such as the 4% rule.
How to use Retirement Calculator
- Enter your age, retirement age, savings and monthly contribution.
- Set the expected return, inflation and withdrawal rate.
- Read your projected savings and retirement income.
Questions people ask
What formula is used?
Each month, balance = balance × (1 + r)^(1/12) + contribution, where r is the yearly return. In today's money = balance ÷ (1 + inflation)^years. Yearly income = balance × withdrawal rate. 25,000 plus 500 a month for 35 years at 6% grows to about 879,000.
What is the 4% rule?
It says you can withdraw 4% of your savings in the first year of retirement, then raise that amount with inflation each year, and the money should last about 30 years. It comes from US market studies in the 1990s and is a guideline, not a promise.
What return should I assume?
Many planners use 5% to 7% a year for a stock-heavy portfolio before inflation, and lower for bonds or cash. Try a cautious and an optimistic rate to see a range.