Retirement Savings Calculator
Plan your retirement with confidence
About the Calculator
Most people have a vague sense they're behind on retirement savings and an equally vague plan to deal with it later. This calculator replaces both the vagueness and the anxiety with actual numbers. Enter your current age, savings balance, monthly contribution, employer match, and expected return - and it shows you exactly what you'll have at retirement, what that translates to as monthly income using the 4% withdrawal rule, and how much of your final balance came from your contributions vs. free employer match vs. pure investment growth. The breakdown between those three is usually the most eye-opening output: for most people who start early, the majority of their retirement balance isn't money they saved - it's growth on money they saved. Use this to test what happens if you increase contributions by $100/month, retire two years later, or actually capture that full employer match you've been leaving on the table.
How to Calculate Manually
- 1Enter your current age and desired retirement age
- 2Input your current retirement savings balance
- 3Add your planned monthly contribution amount
- 4Enter your employer's matching percentage (if applicable)
- 5Set your expected annual return rate (7-10% is typical for stocks)
- 6Review your projected balance and annual retirement income
Total in 401(k), IRA, and other retirement accounts
Your planned monthly savings
E.g., 50% = $0.50 per $1.00 you contribute
Historical stock market average: 7-10%
Projected Retirement Balance
$2,127,726
At age 65 (35 years from now)
Annual Retirement Income
$85,109
Using 4% withdrawal rule
Monthly Retirement Income
$7,092
Per month in retirement
Savings Growth Over Time
Contribution Breakdown
Key Insights
💰 Employer match adds $105,000 in free money over 35 years
📈 Investment growth accounts for 84% of your final balance
🎯 You're investing $6,000/year - 2025 elective deferral limit is $23,500 for 401(k)
The Formula
Retirement account types - which applies to you
The calculator models any retirement savings account, but the account type you use significantly affects your tax treatment and long-term outcome.
Traditional 401(k)
Contributions come from pre-tax income, reducing your taxable income today. Growth is tax-deferred. Withdrawals in retirement are taxed as ordinary income. Contribution limit in 2025: $23,500/year ($31,000 if age 50+). Most employer matches go into a traditional 401(k) regardless of which type you choose.
Roth 401(k)
Contributions come from after-tax income - no upfront tax break. Growth is tax-free. Qualified withdrawals in retirement are completely tax-free. Same contribution limits as traditional. Best suited for people who expect to be in a higher tax bracket in retirement than they are today.
Traditional IRA
Similar tax treatment to a traditional 401(k) - pre-tax contributions (if income-eligible), tax-deferred growth, taxed at withdrawal. Contribution limit: $7,000/year in 2025 ($8,000 if age 50+). Can be used alongside a 401(k).
Roth IRA
After-tax contributions, tax-free growth, tax-free withdrawals. Same $7,000/$8,000 limits. Income limits apply - in 2025, the ability to contribute phases out above $150,000 (single) / $236,000 (married). The most flexible retirement account available: contributions (not earnings) can be withdrawn at any time without penalty, making it useful as both a retirement vehicle and an emergency backstop.
The general rule of thumb: Contribute to your 401(k) up to the full employer match first (it's an immediate 50-100% return). Then max a Roth IRA if income-eligible. Then return to the 401(k) for additional contributions. This sequence optimizes for both the free match and tax-free growth.
Social Security - the income source most calculators ignore
This calculator models the retirement savings you build yourself. But for most Americans, Social Security represents a significant additional income stream that meaningfully affects how much you actually need to save.
The average Social Security benefit in 2025 is approximately $1,976/month ($23,712/year) for a retired worker. For a couple where both partners worked, combined benefits can reach $3,500-$4,500/month or more. These aren't small numbers - for a retiree needing $60,000/year, Social Security covering $24,000 of that means savings only need to generate $36,000/year, requiring a portfolio of $900,000 rather than $1,500,000 at the 4% rule.
When to claim matters enormously. You can claim as early as 62 (at a permanently reduced benefit - up to 30% less than your full retirement age benefit) or as late as 70 (at a permanently increased benefit - up to 32% more than your full retirement age benefit). The break-even age for delaying from 62 to 70 is typically around 82-83. If you expect to live into your mid-80s or beyond - and many people do - delaying Social Security is one of the highest-return financial decisions available, equivalent to buying an inflation-adjusted annuity at a price no private insurer can match.
Check your estimated benefit at ssa.gov/myaccount using your actual earnings record, and factor it into your retirement income planning alongside this calculator's output.
Examples
Example 1: The early starter advantage
Person A starts at 25 with $5,000 saved, contributes $400/month, gets a 50% employer match on up to 6% of a $60,000 salary ($150/month match), and earns 8% annual returns. At 65, they have approximately $1.9M. Of that, roughly $192,000 came from their own contributions, $72,000 from employer match, and $1.6M - 85% of the total - from investment growth. Monthly retirement income at 4% withdrawal: $6,400/month.
Example 2: The same contributions, starting 10 years later
Person B identical in every way to Person A, but starts at 35 instead of 25. Same $400/month contributions, same employer match, same 8% return. At 65, they have approximately $840,000 - less than half of Person A's balance. The 10-year head start was worth more than $1,000,000. Monthly retirement income: $2,800/month - a $3,600/month gap from identical contribution behavior, for life. This is the most important output this calculator produces: the cost of delay is not linear, it's exponential.
Example 3: The employer match multiplier
A 40-year-old earning $80,000 with a 50% match on up to 6% of salary ($2,400/year in free match money) who is only contributing 3% - enough to get half the match, but leaving $1,200/year on the table. Increasing contributions from 3% to 6% costs $200/month in take-home pay (less after the pre-tax reduction). But that $200/month extra contribution + the additional $100/month in now-captured match grows to approximately $120,000 in additional retirement savings over 25 years at 8% returns. The effective return on that $200/month contribution is dramatically higher than 8% because the employer match doubles the initial input.
FAQ
Am I saving enough for retirement?
The most commonly cited benchmark is saving 10-15% of gross income annually, including any employer match. A more precise test: will your projected balance (from this calculator) generate enough monthly income at the 4% rule to cover your expected retirement expenses? If your projected monthly income falls short of your target spending, the gap tells you exactly how much more to save or how many more years to work. The earlier you run this calculation, the more time you have to close any gap with modest adjustments rather than dramatic ones.
What's the difference between a 401(k) and an IRA?
A 401(k) is employer-sponsored - you contribute through payroll deductions, and employers can add a match. Contribution limits are much higher ($23,500/year in 2025) and investment options are limited to what your employer's plan offers. An IRA is individual - you open and manage it yourself at any brokerage, with more investment flexibility but lower contribution limits ($7,000/year). Both come in traditional (pre-tax) and Roth (after-tax) versions. Most people with access to a 401(k) with employer match should use both: 401(k) up to the match, then IRA, then back to the 401(k).
When should I start taking Social Security?
The decision depends primarily on your health and life expectancy. Claiming at 62 gives you benefits sooner but permanently reduces them by up to 30%. Waiting until 70 increases benefits by up to 32% above your full retirement age amount. The break-even age - where the cumulative benefit from waiting surpasses the cumulative benefit from claiming early - is typically around 82-83. If you're in good health and have family longevity, delaying to 70 is almost always financially optimal. If you have significant health concerns or need income earlier, claiming sooner may make more sense.
What does the 4% rule mean?
The 4% rule is a retirement withdrawal guideline based on the 1998 Trinity Study, which found that withdrawing 4% of a portfolio annually (adjusted for inflation each year) had a very high probability of lasting 30 years across historical market conditions. It's used as a planning tool: divide your annual retirement spending need by 0.04 to get your target portfolio size. Need $60,000/year in retirement? You need $1,500,000. Need $80,000/year? You need $2,000,000. For retirements longer than 30 years, a more conservative 3.5% withdrawal rate is often recommended.
What happens if I retire early and my savings run out?
This is sequence of returns risk combined with longevity risk - the two biggest threats to retirement security. Mitigations include: maintaining a flexible withdrawal strategy (reducing spending in bad market years), keeping 1-2 years of expenses in cash so you are not forced to sell equities at a loss during downturns, considering part-time work in early retirement to reduce portfolio withdrawals, and delaying Social Security as long as possible to maximize that guaranteed income floor.
How does inflation affect my retirement savings?
Significantly. A $60,000/year lifestyle today costs roughly $108,000/year in 30 years at 2% average inflation - nearly double. This calculator uses your expected return assumption to model nominal growth, but to think in real (inflation-adjusted) terms, subtract your expected inflation rate from your expected return before entering it. Using a 5% real return instead of 8% nominal gives a more conservative and inflation-honest projection. Social Security benefits are adjusted for inflation annually (COLA adjustments), which is one reason they're so valuable as a retirement income floor.
Tips & Strategies
2025 contribution limits: 401(k) $23,500/year, IRA $7,000/year (under 50). Catch-up contributions for those 50+ add $7,500 to 401(k) and $1,000 to IRA limits.
Employer match is free money. always contribute enough to capture the full match before directing savings anywhere else. Leaving any match uncaptured is a 50-100% guaranteed loss on that portion of your compensation.
The 4% rule: you can safely withdraw 4% of your balance annually in retirement with a high probability of the portfolio lasting 30 years. Divide your target annual income need by 0.04 to get your required portfolio size.
Starting 10 years earlier can roughly double your retirement savings due to compound growth. the single most powerful retirement planning action available.
Increase contributions by 1% annually. you won't miss it and over a career it makes an enormous difference to the final balance.
Things Worth Knowing
- •Someone who invests $500/month from age 25-35 then stops will likely have MORE at 65 than someone who starts at 35 and invests until 65
- •The average 401(k) balance for Americans in their 60s is only $200,000 - far below what most need
- •A $1 million retirement balance provides about $40,000/year using the 4% rule
- •Every $100/month invested at 8% for 30 years becomes $150,000+
Related calculators
FIRE Calculator
Model early retirement and financial independence timelines
View calculator →Compound Interest Calculator
See the pure math of compounding growth that drives your retirement balance
View calculator →Net Worth Calculator
Track your complete financial picture, not just retirement accounts
View calculator →