What is the retirement calculator?
In short
You need 25× your annual spending saved to retire comfortably — the 4% rule. Saving $500/month at 8% for 30 years builds $745,000, generating $2,983/month at a 4% withdrawal rate. Starting at 25 vs 35 nearly doubles the final balance: $1.26M vs $672k (same $500/month, same 8%). Social Security adds roughly $1,500–$2,000/month on top for most retirees — enter it as supplemental income to see your true gap.
This retirement calculator projects how much you'll have saved by retirement and estimates the monthly income it can provide, based on your contributions, expected return, and a chosen withdrawal rate.
How to use this calculator
- 1Enter your current age and target retirement age.
- 2Add your current savings and monthly contribution.
- 3Set your expected annual return.
- 4Choose a withdrawal rate (4% is a common default).
- 5Review your projected balance and monthly retirement income.
The formula
- FV
- — Projected balance at retirement
- P
- — Current savings
- PMT
- — Monthly contribution
- r
- — Expected annual return (decimal)
- n
- — Compounds per year
- t
- — Years until retirement
Annual income = FV × withdrawal rate. The 4% rule is a guideline based on historical US market data, not a guarantee.
Worked example
The scenario
Age 30, retire at 65, $50,000 saved, $1,000/month, 7% return, 4% withdrawal.
The result
You retire with about $1.94M, providing roughly $6,460/month in first-year retirement income.
Common use cases
- Checking if you're on track to retire
- Testing how contribution changes affect your future
- Estimating retirement income from a target nest egg
- Planning early retirement (FIRE)
Limitations & assumptions
- Does not include Social Security, pensions, or other income.
- Assumes a constant return; sequence-of-returns risk is not modeled.
- Ignores taxes and is not adjusted for inflation.
Frequently asked questions
How much do I need to retire?
What is the 4% rule?
What return should I assume?
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.