Retirement planning comes down to one question: will the money you set aside, plus the growth it earns, be enough to support the lifestyle you want after you stop working? This calculator projects your nest egg by combining your current savings, ongoing contributions, expected investment return, and the number of years until you retire.
How the projection works
Your balance grows in two ways: the contributions you add each year, and the compound returns those contributions earn over time. The calculator applies your expected annual return to a growing balance, so the earnings themselves start earning — which is why starting early matters far more than the amount you contribute.
The power of starting early
Someone who invests $500 a month from age 25 to 65 at a 7% return retires with roughly $1.2 million. Someone who waits until 35 and invests the same $500 a month ends up with about $570,000 — less than half — despite contributing only ten fewer years. The extra decade of compounding does the heavy lifting.
How much you will need
A common benchmark is the 4% rule: you can withdraw about 4% of your balance in the first year of retirement and adjust for inflation thereafter. That means a $1 million portfolio supports roughly $40,000 of annual spending. Work backward from your desired retirement income to see the target balance you should aim for.
Ways to strengthen your plan
- Capture every dollar of employer 401(k) match — it is an instant 50-100% return.
- Increase your contribution rate by 1% each year, ideally timed with raises so you never feel the cut.
- Keep fees low; a 1% annual fee can cost you hundreds of thousands over a career.
- Revisit your expected return assumption conservatively — planning for 6-7% rather than 10% leaves margin for down years.