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Retirement Calculator

Estimate how much you will have saved by retirement, what it is worth in today's money and the monthly income it could pay until your chosen life expectancy.

  • Free, no sign-up
  • Runs in your browser
  • Finance
Ages
Savings are spent down to zero at this age (max 120).
Savings
Added at the end of each month until retirement.
Returns and inflation
Estimates only, not financial advice. Taxes and fees are not included.

How to use the retirement calculator

Enter your current age, the age you plan to retire and your life expectancy (90 by default). Add what you have saved so far and how much you will put in each month. Then set the expected annual return before retirement (6% by default), the expected annual return during retirement (4% by default) and the inflation rate (2.5% by default). Press Calculate.

The result shows your savings at retirement, the same amount in today's money, the monthly income those savings could pay until your life expectancy, your total contributions and the investment growth. The table below follows your balance year by year, through both the saving years and the spending years.

How the estimate works

Saving years. Returns compound monthly at the annual rate divided by 12, and each contribution is added at the end of the month.

In today's money. The balance at retirement is divided by (1 + inflation)^(years to retirement). This shows roughly what that sum would buy at today's prices.

Spending years. The calculator finds the level monthly withdrawal that uses up the balance exactly at your life expectancy, using the standard annuity formula W = B × r / (1 − (1 + r)^−n), where r is the retirement return divided by 12 and n is the number of months in retirement. With a 0% return it is simply the balance divided by the months. The withdrawal stays the same in money terms each month, so its buying power falls over time with inflation.

Worked example

You are 40, have 10,000 saved and add 500 a month until you retire at 65, earning 6% a year. After 300 months the balance is 10,000 × 1.005^300 + 500 × (1.005^300 − 1) / 0.005 = 391,146.68. You contributed 150,000 and growth added 231,146.68. With 2.5% inflation that is about 210,980.84 in today's money.

Spread over 25 years of retirement at 4%, the savings could pay about 2,064.62 a month, which is roughly 1,113.63 in today's money at the start of retirement.

Important limits

  • These are estimates, not financial advice. Real returns go up and down, and a bad run of years early in retirement can matter a lot.
  • Taxes, fees, pensions and social security benefits are not included. Add any pension income separately when you plan.
  • Contributions stay the same every month; in practice many people raise them as their pay grows.
  • If you outlive your life expectancy, this plan would leave nothing for the extra years, so a cautious estimate uses a higher age.

Frequently asked questions

What does "in today's money" mean?

It is the future amount reduced by the inflation you entered, so you can compare it with prices today. For example, 391,146.68 in 25 years at 2.5% inflation buys about as much as 210,980.84 does now.

How is the monthly retirement income calculated?

It is the fixed monthly withdrawal that, together with the return you expect during retirement, brings your balance to exactly zero at your life expectancy. It works like a loan payment in reverse.

Why are there two different return rates?

Many people invest more cautiously once they retire, which usually means a lower expected return. Using a separate rate for the spending years gives a more realistic income estimate.

Does the calculator include taxes or pensions?

No. It models only your own savings, before taxes and fees. Pensions, social security and other income are not included, and the results are estimates rather than financial advice.