How to use this retirement calculator
- Pick your question. “How much do I need?” checks whether your savings plan is on track; “How long will my money last?” tests a withdrawal against a balance.
- Enter your age, retirement age, income, current savings and savings rate. Count everything set aside for retirement, including your employer’s match.
- Adjust the assumptions under “Retirement income & life expectancy” and “Returns, raises & inflation”. Use your own Social Security estimate if you have one.
- Read the verdict. You’ll see the savings you need, what you’re on track to have, and the extra monthly savings that would close any gap. Copy the link to save your scenario.
How much money do you need to retire?
Your target, or nest egg, is the amount that can pay the part of your retirement income that Social Security and pensions don’t cover, every year until your plan-to age, while the rest stays invested. The calculator works it out in four steps:
- Income goal. A share of your pay just before you retire (the replacement rate). The U.S. Department of Labor says experts estimate you’ll need 70% to 80% of your preretirement income to keep your standard of living; we default to 80% as a rule of thumb, not a rule.
- Income gap. Subtract Social Security and pensions (entered in today’s dollars and grown with inflation).
- Nest egg. Add up that gap, rising with inflation every year of retirement, and discount it back to your retirement date at the return you expect during retirement. This is the present value of a growing annuity.
- Compare. Project your current savings and contributions (which rise with your raises) to retirement, then solve for the extra monthly saving that closes any shortfall.
Retirement savings formula
With withdrawals taken at the start of each month and raised once a year for inflation, the savings needed at retirement are:
N = A × (1 − q^m) / (1 − q), where q = (1 + i) / (1 + R)
- N
- savings needed on the day you retire (the nest egg)
- A
- the first year’s 12 monthly withdrawals, valued at the start of retirement at the monthly rate r = (1 + R)^(1/12) − 1
- R
- annual return during retirement
- i
- annual inflation rate (how fast withdrawals rise)
- m
- years in retirement (plan-to age minus retirement age)
Worked example
Our 35-year-old earns $75,000 and gets 3% raises, so pay in the last working year (age 66) is $187,506. A goal of 80% of that is $150,005 a year. Social Security of $2,071 a month in today’s dollars grows to $63,996 a year by 67 at 3% inflation, leaving a first-year gap of $86,009, or $7,167 a month. At a 5% return the monthly rate is r = 0.4074%, so the first year’s withdrawals are worth A = $84,115 on day one. With q = 1.03 ÷ 1.05 = 0.98095 and m = 23 years, N = $84,115 × (1 − 0.6425) ÷ (1 − 0.98095) = $1,578,546. Saving 10% of pay on top of today’s $50,000 at 6% grows to $1,318,628, a shortfall of $259,918.
How much should you save for retirement?
A widely quoted guideline from Fidelity is to save at least 15% of your pre-tax income every year, including any employer match, from age 25 until 67, which it says can help you accumulate about 10 times your income by 67. Starting later raises the bar quickly. The table shows the savings rate needed to be on track by 67, starting from $0 at each age, using this page’s example assumptions ($75,000 income, 3% raises, 80% of final pay, $2,071/mo Social Security, 6% returns before and 5% during retirement, 3% inflation, plan to 90):
| Start saving at age | Savings rate needed | Monthly savings in year one |
|---|---|---|
| 25 | 10.2% | $638 |
| 30 | 12.6% | $788 |
| 35 | 15.8% | $991 |
| 40 | 20.4% | $1,274 |
| 45 | 27.1% | $1,694 |
| 50 | 37.9% | $2,371 |
| 55 | 58% | $3,627 |
The 4% rule, explained
The 4% rule comes from a study by financial planner William Bengen, published in the Journal of Financial Planning in October 1994. Using U.S. returns going back to 1926, he found that withdrawing 4% of a portfolio split evenly between stocks and intermediate-term Treasuries in the first year of retirement, then raising that dollar amount each year for inflation, never ran out of money in less than 33 years. He recommended keeping 50% to 75% of the portfolio in stocks.
For the example above, 4% of the $1,578,546 nest egg is $63,142 in the first year ($5,262 a month). Turned around, the rule says you need 25 times your first-year need from savings: 25 × $86,009 = $2,150,222, versus $1,578,546 from our 23-year calculation. The rule is built to survive the worst historical markets over at least 30 years, so it usually asks for more than a steady-return projection, especially when retirement is shorter than 30 years.
Keep its limits in mind:
- It’s based on past U.S. returns. Future returns, especially in your first years of retirement, may be worse. A bad market early on (sequence-of-returns risk) hurts far more than the same drop later.
- It assumes a 30-year retirement. Retiring early or living past 95 calls for a lower starting rate.
- It uses market returns before fees and keeps raising withdrawals with inflation, even after a crash. Fees lower the safe rate; being willing to trim withdrawals in bad years makes a plan safer.
How long will your retirement savings last?
Switch the calculator to “How long will my money last?” to test any withdrawal. With the defaults (a $1,000,000 balance, withdrawals starting at $4,000 a month and rising 3% a year, and a 5% return), the money lasts about 27 years, a first-year withdrawal rate of 4.8%. A 4% start ($3,333 a month) would last about 34 years 8 months under the same assumptions.
| Monthly withdrawal (first-year rate) | 4% return | 5% return | 6% return | 7% return |
|---|---|---|---|---|
| $3,000/mo (3.6%) | 32.8 yrs | 40.4 yrs | 57.3 yrs | Indefinitely |
| $3,500/mo (4.2%) | 27.4 yrs | 32.3 yrs | 41 yrs | 65.6 yrs |
| $4,000/mo (4.8%) | 23.6 yrs | 27 yrs | 32.3 yrs | 42.6 yrs |
| $4,500/mo (5.4%) | 20.7 yrs | 23.3 yrs | 26.8 yrs | 32.8 yrs |
| $5,000/mo (6%) | 18.4 yrs | 20.3 yrs | 23 yrs | 27 yrs |
| $6,000/mo (7.2%) | 15.1 yrs | 16.3 yrs | 18 yrs | 20.1 yrs |
Social Security and your full retirement age
The Department of Labor notes that, on average, retirement beneficiaries receive 40% of their pre-retirement income from Social Security, which is why you usually need savings on top of it. The average retired-worker benefit was $2,071 a month as of January 2026 (SSA - 2026 COLA Fact Sheet), which is this calculator’s default for Social Security income.
- Full retirement age is 67 if you were born in 1960 or later.
- Claiming at 62, the earliest age, permanently cuts your benefit by up to 30%.
- Waiting until 70 raises it by up to 24% compared with claiming at 67.
Benefits also get a yearly cost-of-living adjustment (2.8% for 2026), which is why this calculator grows your Social Security income with inflation. For a personal estimate based on your earnings record, sign in to my Social Security and enter that amount in today’s dollars.
Inflation: the quiet retirement risk
Inflation shrinks what each dollar buys, and retirement can last decades. U.S. consumer prices (CPI-U) rose an average of 3% a year from 1926 to 2025 and 2.5% a year over the last 30 years, according to Bureau of Labor Statistics data; over the 12 months through August 2026 they rose 3.4%. The Federal Reserve targets 2% inflation over the longer run. At 3% a year, prices double in about 23.4 years, so $5,000 of monthly spending today would cost about $10,469 in 25 years. That is why this calculator raises withdrawals every year and shows balances in today’s dollars. For older or past prices, try the inflation calculator.
Required minimum distributions (RMDs)
The IRS requires you to start withdrawing from traditional IRAs, SEP and SIMPLE IRAs, and workplace plans such as 401(k)s once you reach age 73; under the SECURE 2.0 Act, final IRS regulations set the starting age at 75 for people born in 1960 or later. You can delay the first RMD until April 1 of the following year, but then you take two in one year. Roth IRAs, and (starting in 2024) Roth accounts in 401(k) and 403(b) plans, have no RMDs while the owner is alive. RMDs set a minimum you must withdraw (and generally pay tax on), not how much you should spend.
How to close a retirement savings gap
- Save a little more now. In the example, an extra $232 a month (or raising the savings rate to 12.6%) closes the gap. Capture your full employer match first; see how contributions grow with the 401(k) calculator.
- Work a little longer. Retiring at 70 instead of 67 would put the example on track, even before counting a bigger Social Security check.
- Delay Social Security. A benefit up to 24% larger at 70 (versus 67) lowers what your savings must provide for life.
- Check your investment mix and fees. Test different returns with the investment calculator or see long-term growth in the compound interest calculator.
What rate of return should you assume?
U.S. stocks (the S&P 500 with dividends reinvested) returned an average of 10% a year from 1928 through 2025, or 6.8% after inflation, according to data compiled by NYU Stern’s Aswath Damodaran. A mix of stocks and bonds has historically earned less than stocks alone, and a more conservative mix in retirement earns less still, which is why this calculator defaults to 6% before retirement and 5% during it, before inflation. Use returns after fees, and test a lower number to see how sensitive your plan is.
Assumptions and limits
Returns are effective annual rates, compounded monthly, and assumed to be steady; real markets aren’t, so treat the results as a planning estimate and leave a margin. Contributions are made at the end of each month and rise with your raises; retirement withdrawals come out at the start of each month. All amounts are before taxes, and Social Security and pensions are treated as income that keeps pace with inflation. Nothing here is investment advice.
Frequently asked questions
How much money do I need to retire?
Enough to cover the gap between the income you want and what Social Security and pensions pay, for as long as you might live. In our example, a $75,000 earner aged 35 who wants 80% of final pay needs about $1,578,546 at 67, or $613,008 in today’s dollars. A quick check is the 4% rule: multiply your first-year need from savings by 25.
What is the 4% rule for retirement?
The 4% rule says you can withdraw 4% of your savings in the first year of retirement, then raise that dollar amount with inflation each year, and expect the money to last about 30 years. It comes from financial planner William Bengen’s 1994 study of U.S. returns since 1926, in which that approach never ran out of money in less than 33 years. It is a guideline, not a guarantee.
How much should I save for retirement each year?
Fidelity’s guideline is to save at least 15% of your pre-tax income each year, including any employer match, from age 25 to 67. The right rate depends on when you start: in our example, someone starting at 35 with $50,000 saved needs to put away about 12.6% of pay to be on track by 67.
How long will $1 million last in retirement?
It depends on how much you withdraw and what your money earns. If you withdraw $4,000 a month at first and raise it 3% a year for inflation, $1 million earning 5% a year lasts about 27 years. Withdrawing less makes it last longer: the table on this page shows the result for other withdrawal amounts and returns.
At what age can I get full Social Security benefits?
Your full retirement age is 67 if you were born in 1960 or later. You can start benefits as early as 62, but they are permanently reduced, by up to 30%. If you wait past full retirement age, your benefit grows each month until 70, when it is up to 24% higher than at 67.
When do required minimum distributions (RMDs) start?
You generally must start taking RMDs from traditional IRAs and workplace plans such as 401(k)s in the year you reach age 73. Under the SECURE 2.0 Act, the starting age is 75 for people born in 1960 or later. Roth IRAs have no RMDs while the owner is alive, and you can delay your first RMD until April 1 of the following year.
Does this retirement calculator include taxes?
No. All amounts are before taxes, so set your income goal as pre-tax income. Withdrawals from traditional 401(k)s and IRAs are generally taxed as ordinary income, while qualified Roth withdrawals are tax-free, so the mix of accounts you hold changes how far your savings go. Returns are also assumed to be net of investment fees.