Free Retirement Calculator
Project retirement savings with contributions, employer match, returns and inflation, and see whether your money lasts to your planning age.
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How to check if your retirement savings will last
Project your retirement balance from savings and contributions, then see year by year whether the money lasts as long as you plan.
- Enter your current age, planned retirement age and the age you want your savings to last to.
- Add current savings, your monthly contribution, salary and any employer match with its cap.
- Set expected returns before and during retirement and an inflation rate.
- Enter the yearly income you want from savings, in today's money.
- Review the projected balance, whether savings last, and the chart or year-by-year table.
When to use a retirement calculator
A retirement calculator helps you turn a vague goal into numbers. How much might you have when you stop working, and will it pay for the life you want for as long as you need it? Running a projection a few times a year shows whether you are on track and what changes, such as saving more, working a little longer or spending less, would do to the outcome.
This tool covers both stages. During the saving years it adds your contributions, the employer match and investment growth. In retirement it withdraws the income you ask for, raised each year for inflation, and tracks whether the balance lasts to the age you plan for. It is a simple model for exploring ideas, not a full financial plan.
Worked example: saving from age 35
Take someone aged 35 with 50,000 dollars saved who plans to retire at 65 and wants savings to last to 90. They contribute 500 dollars a month and earn 80,000 dollars a year. The employer matches 50 percent of contributions up to 6 percent of salary, which adds 200 dollars a month. Returns are 7 percent a year before retirement and 5 percent after, inflation is 2.5 percent, and the goal is 50,000 dollars a year in today's money.
The projected balance at 65 is 1,199,229.57 dollars, or 571,723.93 dollars in today's money. Contributions plus match total 252,000 dollars; the rest is growth. Because of inflation, the first year of retirement needs 104,878.38 dollars to buy what 50,000 dollars buys now. At that rate the money runs out at about age 78 years 6 months, well before 90.
Raising the monthly contribution to 1,200 dollars changes the picture. The balance at 65 grows to 2,017,846.40 dollars, and the savings last to 90 with 231,661.46 dollars left, which is 59,571.86 dollars in today's money.
How the projection works
Each annual return is converted to an equivalent monthly rate, (1 plus the annual rate) to the power of one twelfth, minus 1. While saving, the balance grows by that rate each month and then your contribution and the match are added. The match is the match percentage times the smaller of your contribution and the cap, where the cap is the cap percentage of salary divided by 12.
In retirement, the yearly income starts at your desired income times (1 plus inflation) to the power of the years until retirement, and grows with inflation every year after. One twelfth is withdrawn at the start of each month before growth is added. Inflation-adjusted figures divide each balance by (1 plus inflation) to the power of the years from today.
Common mistakes to avoid
The biggest mistake is assuming high, steady returns. Real markets move up and down, and a bad run just before or after retiring can do lasting harm. Test a lower return to see how much room you have. Another mistake is entering today's spending without counting other income. If you expect a pension or Social Security, enter only the part your savings must cover.
Remember that taxes, investment fees and changes in contribution levels are not modeled. Use the results as general information and talk with a qualified financial professional before you make retirement decisions.
Useful tips and limitations
- Try a lower return, such as 2 points below your first guess, to see how sensitive the plan is.
- Subtract any pension or Social Security you expect from the desired income, since the tool only draws from savings.
- Download the CSV to keep a copy of each scenario and compare them side by side.
- Switch the chart between nominal and today's money to see how much inflation shrinks a large future balance.
Common questions
How does the retirement calculator handle employer match?
The employer adds your match percentage of your monthly contribution, but only on contributions up to the cap you set as a percentage of salary. For example, a 50 percent match up to 6 percent of an 80,000 dollar salary adds up to 200 dollars a month.
What does today's money mean in the retirement calculator?
It removes inflation so future amounts can be compared with prices now. A balance in today's money is the nominal balance divided by the growth in prices since today.
Is the retirement calculator financial advice?
No. It is general information using steady returns and inflation. Markets vary, and taxes and fees are not included, so speak with a qualified financial professional before making decisions.
Why does the retirement calculator say my money runs out?
Withdrawals, raised each year for inflation, are larger than what the balance can support at the return you entered. Try saving more, retiring later, lowering the desired income or checking your return assumption.
Does the retirement calculator increase my contributions over time?
No. Your monthly contribution and the employer match stay the same each month until retirement. Enter a higher contribution to test a plan where you save more.
What life expectancy should I enter in the retirement calculator?
Many people plan to an age past the average, such as 90 or 95, so they are less likely to outlive their savings. The field sets how long the projection runs.
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