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Retirement

Retirement Budget Calculator

Compare your retirement expenses against income to find your monthly gap.

Updated June 2026 · Editorial standards

Monthly retirement budget

$
$
$
$
$
$
$
Monthly shortfall
$100
Total monthly expenses
$3,600
Annual shortfall
$1,200
Income coverage
97.2%

Your budget runs short by $100/month — income covers 97.2% of expenses.Total monthly expenses: $3,600 vs projected income $3,500.

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the retirement budget calculator?

In short

A retirement budget calculator compares your projected monthly income against expenses by category. With $3,600 in monthly expenses (housing, food, healthcare, transportation, entertainment, other) and $3,500 in projected income, you'd face a $100/month shortfall — about $1,200 per year.

Adds up your monthly retirement expenses by category and compares them against projected income to reveal your monthly surplus or shortfall and income coverage ratio.

How to use this calculator

  1. 1Enter your expected monthly spending in each category.
  2. 2Enter your projected monthly retirement income (Social Security + pension + withdrawals).
  3. 3See whether you have a surplus or shortfall and what percent of expenses your income covers.

The formula

gap=income−expenses
coverage%=incomeexpenses×100
gap = income − expenses; coverage% = income / expenses × 100
expenses
— Sum of all monthly expense categories
income
— Projected monthly retirement income
gap
— Surplus/shortfall = income − expenses
coverage%
— income / expenses × 100

Worked example

The scenario

$1,500 housing + $600 food + $500 healthcare + $300 transport + $400 entertainment + $300 other = $3,600; income $3,500.

gives

The result

Monthly shortfall: $100. Annual shortfall: $1,200. Income coverage: 97.2%.

Common use cases

  • Pre-retirees stress-testing whether their income will cover expenses.
  • Retirees rebalancing spending to close an income gap.
  • Planning how much to withdraw from a portfolio each month.

Limitations & assumptions

  • Does not project inflation, which raises expenses over a long retirement.
  • Healthcare costs typically rise faster than general inflation and may be understated.
  • Does not model irregular expenses like home repairs or long-term care.

Frequently asked questions

A common rule of thumb is 70–80% of your pre-retirement income, but a category-by-category budget is more accurate. Housing and healthcare are usually the largest line items.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.