Retirement Calculator
Project your savings through retirement, compare them with expected spending, and see how contributions, inflation, returns, and other income change the result.
Additional
Assumptions
Plan details
Per month, in today's money.
How to Use the Retirement Calculator
Enter your current age, retirement age, and the age through which you want the scenario to run. Then add current savings, your monthly contribution, and the monthly retirement spending you want to model in today's purchasing power.
Open Additional to change the return assumptions, inflation, annual contribution increase, or other monthly retirement income. Other income can represent a pension, public benefit, annuity, work income, rental income, or another recurring source you have estimated separately.
The result compares projected savings at retirement with the balance the model requires, shows any gap or surplus, estimates the contribution needed, and follows the balance through retirement. Open the projection section for the yearly schedule, print view, and CSV export.
How Much Do You Need to Retire?
There is no single retirement number that works for everyone. The amount depends on how much you expect to spend, how long the money needs to last, what other retirement income you expect, how much you already have, and the return and inflation assumptions used in the model.
That is why this calculator starts with spending rather than applying one universal multiple of salary. It works backward from the retirement cash flow you enter and estimates the balance needed to support it through the selected plan-through age.
The result is a scenario, not a promise. Change the inputs and the required balance can move substantially.
Retirement Spending Matters More Than a Magic Nest-Egg Number
A retirement balance only has meaning in relation to what it needs to pay for. Someone planning to spend $3,000 per month needs a different model from someone planning to spend $8,000, even if both retire at the same age.
Enter retirement spending in today's money. The calculator then increases it with inflation to the retirement date and continues inflating it during retirement.
This makes the comparison more coherent than placing a future nominal investment balance next to an unchanged present-day spending figure.
Today's Money Versus Future Money
Inflation changes what the same amount of money can buy. In the default scenario, $4,000 of monthly spending today becomes about $9,492.82 per month at age 65 when inflation is modeled at 2.5% for 35 years.
The number looks much larger because it is a future nominal amount. Its purpose is to represent roughly the same spending target after the model's assumed inflation.
Actual inflation does not arrive at one fixed rate, and individual expenses can rise differently. The inflation input is therefore best treated as a scenario assumption rather than a forecast.
Other Retirement Income Reduces What Savings Must Fund
Retirement spending does not always come entirely from an investment account. Public benefits, workplace pensions, annuities, part-time work, rent, and other recurring income can cover part of the budget.
Enter Other retirement income as a monthly amount in today's money. The calculator inflates that income using the same rate as spending, then subtracts it from planned spending before calculating the withdrawal required from savings.
This is deliberately generic. The tool does not estimate eligibility or payment amounts for any country's pension or benefit system. If an income source starts later than retirement, stops, or is not indexed with inflation, one constant input will not reproduce that pattern exactly.
Why Starting Earlier Changes the Monthly Contribution
More years before retirement create more contribution months and more time for earlier deposits to compound. That is why the starting contribution needed for the same retirement target can change sharply when the current age or retirement age moves.
The Department of Labor makes the same basic point in its retirement-planning material: the more years available before retirement, the less that generally has to be saved each month to reach a given target.
The calculator compounds current savings and each monthly contribution through the accumulation phase rather than multiplying today's balance by a simple rule of thumb.
Increasing Contributions Over Time
A flat contribution is easy to model but not always how people save. If you expect to increase contributions as income rises, use Annual contribution increase under Additional.
With a $500 starting contribution and a 3% annual increase, the model uses $500 per month in the first year, $515 in the second, about $530.45 in the third, and continues from there.
When contribution growth is above zero, the result labeled Required starting contribution is the monthly amount that would need to be contributed in year one under that same annual increase assumption.
Before-Retirement Return and Retirement Return
The calculator separates the return before retirement from the return during retirement because the assumptions do not have to be identical across the two phases.
Each value is treated as an effective annual return and converted to an equivalent monthly rate. If you want investment fees reflected, use return assumptions that already account for the fees you expect rather than adding the same fee again elsewhere.
Real investment returns vary from year to year and can be negative. A smooth return is useful for comparing scenarios, but it cannot show market volatility or sequence-of-returns risk.
What Happens After Retirement
At retirement, modeled contributions stop. Each month the remaining balance receives the selected retirement return, planned spending and other retirement income are increased with inflation, and only the net amount that still needs funding is withdrawn from savings.
If savings can no longer cover the complete net withdrawal, the calculator records the unfunded amount and reports the approximate age when the modeled balance first runs out before the end of the scenario.
If savings remain through the plan-through age, the result reports the modeled ending balance instead.
Why Sequence of Returns Matters
Two portfolios can have the same long-run average return and still produce different retirement outcomes if gains and losses arrive in a different order. Losses early in retirement can be especially damaging because withdrawals continue while the balance is depressed.
This calculator does not run random market paths or a Monte Carlo simulation. It applies one smooth return before retirement and one smooth return during retirement.
Use lower-return scenarios alongside the central scenario if you want to see how sensitive the plan is to weaker long-run growth, but do not interpret the funding percentage as a probability of success.
Plan Through Age 85, 90, or 95?
The plan-through age tells the model how long to keep funding retirement withdrawals. Moving it later adds more months of spending and will usually increase the required balance.
It is not a life-expectancy prediction. It is simply the end of the scenario you choose to test.
Retirement guidance from public agencies commonly emphasizes that savings may need to support a long retirement. Testing more than one horizon is more informative than treating one age as certain.
How to Read Funding Progress, Gap, and Surplus
Funding progress divides projected savings at retirement by the modeled required retirement balance. A value below 100% means the projected balance is below the modeled requirement; a value above 100% means it is above it.
The funding gap is the amount by which projected savings fall short. A projected surplus is the amount above the modeled requirement.
These are comparisons inside the assumptions you entered. They are not a probability of success or a judgment about whether a retirement plan is appropriate.
| Result | Meaning |
|---|---|
| Projected savings at retirement | Current savings plus modeled contributions and growth through the selected retirement age |
| Required retirement balance | Retirement-age balance needed to fund the modeled spending that remains after other retirement income |
| Funding gap or surplus | Difference between projected savings and the modeled required balance |
| Required contribution | Monthly contribution needed to reach the modeled requirement; with contribution growth, this is the required starting amount |
| Run-out age or ending balance | Whether the modeled savings support the net withdrawals through the selected plan-through age |
A Retirement Scenario Can Change More Than You Expect
The table below starts with age 30, retirement at 65, a plan through age 85, $50,000 already saved, $500 per month contributed, 7% before retirement, 4% during retirement, $4,000 of monthly spending today, and 2.5% inflation.
Adding $1,500 of monthly retirement income does not change the savings accumulated by age 65, but it sharply reduces the balance required from savings. Increasing contributions by 3% each year changes the accumulation side instead.
That is why retirement calculators are most useful as scenario tools: one input can affect a different part of the model than another.
| Scenario | Change | Savings at 65 | Required balance | Gap / surplus |
|---|---|---|---|---|
| Base scenario | No other retirement income; flat $500 monthly contribution | $1,389,535.89 | $1,975,948.10 | $586,412.21 gap |
| Add $1,500 monthly retirement income | Other income entered in today's money | $1,389,535.89 | $1,234,967.56 | $154,568.33 surplus |
| Increase contributions 3% each year | $500 starting monthly contribution | $1,750,614.05 | $1,975,948.10 | $225,334.05 gap |
Test More Than One Retirement Scenario
A single projection can create false precision. Change one assumption at a time and watch which results move most.
Useful comparisons include retiring later, contributing more, increasing contributions over time, adding known retirement income, lowering spending, extending the planning horizon, and using more conservative return assumptions.
The direction of those changes is summarized below. The size of the effect depends on the complete scenario.
| Change | Usual mathematical effect |
|---|---|
| Retire later | Adds saving time and shortens the modeled drawdown period |
| Increase contributions | Raises projected savings at retirement |
| Increase contributions each year | Lets a lower starting contribution grow over time instead of remaining flat |
| Add other retirement income | Reduces the amount of retirement spending that must come from savings |
| Lower retirement spending | Reduces the modeled required retirement balance |
| Plan through an older age | Adds modeled retirement months and normally increases the required balance |
| Use lower return assumptions | Reduces modeled growth and usually increases the contribution or balance required |
What This Retirement Model Does Not Include
The model deliberately stays jurisdiction-neutral. It does not calculate Social Security, CPP, OAS, State Pension, Age Pension, employer pension formulas, retirement-account tax rules, required distributions, contribution caps, or tax relief.
It also excludes investment fees as a separate cash flow, taxes, healthcare shocks, irregular purchases, one-time withdrawals, employer matches, changing retirement-income start dates, and market volatility.
Those exclusions do not make the calculator useless; they define what the result means. Use it to understand a consistent savings-and-drawdown scenario, then replace generic assumptions with official benefit estimates and plan-specific information when those details matter.
| Area | Calculator model | What can differ in real life |
|---|---|---|
| Investment returns | One effective annual return before retirement and one during retirement | Markets are volatile and the order of gains and losses can materially change outcomes |
| Contributions | Monthly contributions can stay flat or increase by one percentage each year | Actual contributions may change with income, employer matching, limits, or interruptions |
| Retirement spending | One monthly target entered in today's money and increased with inflation | Housing, healthcare, travel, taxes, and other costs rarely move at one identical rate |
| Other retirement income | One monthly amount in today's money that rises with the same inflation assumption as spending | Pensions, public benefits, annuities, work, and rental income can start at different ages and may index differently |
| Planning horizon | Runs through one selected plan-through age | The age is a scenario boundary, not a prediction of lifespan |
Retirement Projection Formulas
The calculator converts effective annual return and inflation assumptions to monthly rates, simulates contributions before retirement, then models inflation-adjusted net withdrawals during retirement.
- Entered effective annual return as a decimal
- Equivalent monthly return
- Equivalent monthly return before retirement
- Equivalent monthly return during retirement
- Annual inflation assumption as a decimal
- Starting monthly contribution
- Annual contribution increase as a decimal
- Modeled savings balance after month t
- Inflation-adjusted monthly retirement spending
- Inflation-adjusted monthly other retirement income
- Monthly amount that must be withdrawn from savings
- Required balance at retirement
- Projected savings at retirement
- Years until retirement
- Months modeled during retirement
Examples
Project a 35-year saving period
Age 30; retire at 65; plan through 85; $50,000 saved; $500 monthly contribution; 7% before retirement; 4% in retirement; $4,000 monthly retirement spending today; 2.5% inflation.
Projected savings at retirement are about $1,389,535.89. The modeled required balance is about $1,975,948.10, leaving a gap of about $586,412.21.
The modeled required monthly contribution is about $842.65 under the same fixed assumptions.
Add $1,500 of other monthly retirement income
Use the default scenario and enter $1,500 per month of other retirement income in today's money.
Projected savings at retirement stay at about $1,389,535.89, but the modeled required balance falls to about $1,234,967.56 because savings no longer fund the entire spending target.
Under these assumptions, the scenario moves from a $586,412.21 gap to a $154,568.33 projected surplus.
Increase contributions by 3% per year
Use the default scenario, start at $500 per month, and set annual contribution increase to 3%.
Projected savings at retirement rise to about $1,750,614.05. The modeled funding gap falls to about $225,334.05.
The required starting monthly contribution under the same 3% annual increase is about $592.59.
Plan through age 95 instead of 85
Use the default scenario but extend the plan-through age from 85 to 95.
The modeled required retirement balance rises to about $2,768,373.93 because the scenario funds ten additional years of inflation-adjusted withdrawals.
Retirement income fully covers modeled spending
Enter other retirement income equal to or greater than monthly retirement spending, with both amounts expressed in today's money.
The net withdrawal need from savings becomes zero under the model, so the required retirement balance for spending becomes zero.
The calculator does not reinvest retirement income that exceeds modeled spending.
Frequently Asked Questions
How much money do I need to retire?
There is no universal amount. This calculator estimates a required retirement balance from your spending, other retirement income, inflation, post-retirement return, retirement age, and plan-through age.
What does projected savings at retirement include?
It includes current savings grown to retirement plus each modeled monthly contribution and its growth. If you set an annual contribution increase, later years use progressively larger monthly contributions.
What does the required retirement balance mean?
It is the retirement-age value the model needs to fund the inflation-adjusted spending that remains after other retirement income through the selected plan-through age.
Is the required monthly contribution an extra amount?
No. With no annual contribution increase, it is the total constant monthly contribution needed under the assumptions. When contribution growth is used, it is the required starting monthly contribution, with later contributions rising by the selected annual percentage.
Why is retirement spending entered in today's money?
The calculator increases the spending target with inflation so the future amount represents the purchasing-power target you enter today.
What can I enter as other retirement income?
Use it for a recurring monthly amount you have estimated separately, such as a public benefit, pension, annuity, work income, or rental income. The calculator does not determine eligibility or calculate those benefits for you.
Does other retirement income automatically start at a different age?
No. The current model assumes it begins with retirement and continues through the selected horizon while rising with the same inflation assumption as spending.
What does annual contribution increase mean?
It raises the monthly contribution once per accumulation year. A $500 starting contribution with a 3% annual increase becomes $515 per month in year two and about $530.45 in year three.
What happens if the model runs out of money?
The calculator reports the approximate age when the balance can no longer fund the complete modeled net withdrawal and tracks later required withdrawals as unfunded.
Does a positive ending balance mean my retirement will definitely be funded?
No. It only means this fixed-assumption scenario remains above zero through the selected plan-through age. Actual returns, inflation, spending, income, fees, taxes, and lifespan can differ.
What is sequence-of-returns risk?
It is the risk that the order of market gains and losses changes the outcome, especially while withdrawals are being made. This calculator uses smooth fixed returns and does not simulate return sequences.
Are taxes and investment fees included?
Not as separate cash flows. If you want fees reflected in the projection, use return assumptions that are already net of the fees you expect. Taxes require account- and jurisdiction-specific rules that this generic calculator does not model.
Why can another retirement calculator show a different result?
Another calculator may use different contribution timing, return assumptions, inflation timing, pension or public-benefit rules, fees, taxes, withdrawal timing, or planning horizons.
Can I export the retirement projection?
Yes. The complete yearly schedule can be exported as CSV even though the on-page schedule is paginated.
References
- U.S. Department of Labor — Taking the Mystery Out of Retirement Planning
- U.S. Department of Labor — Savings Fitness
- Financial Consumer Agency of Canada — Planning and saving for retirement
- Government of Canada — Canadian Retirement Income Calculator
- MoneyHelper — How much money do I need for my retirement?
- MoneyHelper — Pension calculator
- Moneysmart — Plan for your retirement
- Moneysmart — Account-based pension calculator