Retirement calculator
You need enough capital that, withdrawing 4% a year, covers the gap between your desired spending and Social Security or a pension. If you want $4,500 a month and expect $2,000 from Social Security, the $2,500 monthly gap requires roughly $750,000 by retirement.
Formula: Target nest egg = (monthly spending − pension) × 12 / 0.04. Contribution = remaining balance / (((1 + i)^n − 1) / i).
Retirement calculator
Estimate the nest egg you need on top of Social Security (or a pension) and the monthly contribution that gets you there.
Estimate calculated in your browser. No data is sent or stored.
How to use it
- Current and retirement age. Sets your accumulation horizon in years.
- Desired spending and estimated benefit. Check your estimated Social Security benefit; if unsure, be conservative.
- Current savings and return. Include 401(k), IRA, brokerage and index funds.
- Adjust until it's realistic. If the needed contribution is out of reach, push back retirement age or lower the spending goal.
The 4% rule and its limits
The 4% rule says you can withdraw that share of your nest egg in year one, adjusting for inflation afterward, with a high probability it lasts 30 years. It's a reference, not a guarantee: if you retire early or expect lower returns, using 3.5% gives more of a cushion.
- 4% withdrawal ≈ 25x annual spending in savings
- 3.5% withdrawal ≈ 28.6x annual spending in savings
- The biggest risk is a bear market in the first few years
401(k), IRA or a taxable brokerage account
A 401(k) or traditional IRA offers upfront tax savings but comes with contribution limits and withdrawal rules; a taxable brokerage account has no such limits and offers full liquidity. Many plans combine both: tax-advantaged accounts up to the match and limit, and the rest in a brokerage account.
Frequently asked questions
- Does this include inflation?
- Not explicitly. To think in today's purchasing power, enter a real return (expected return minus expected inflation), e.g. 3% instead of 6%.
- How do I estimate my Social Security benefit?
- The Social Security Administration offers an online estimator based on your earnings record. If retirement is far off, use a conservative estimate since rules can change.
- What happens if I start late?
- The target doesn't change, but the required monthly contribution rises sharply. Delaying retirement by a few years both lowers the target and lengthens the time you have to save.