Are you on track? Compare what you'll have saved to what your retirement will cost.
A retirement savings calculator shows whether you're on track for the retirement you want. It compares what you'll have saved by retirement to what your retirement will actually cost, using an inflation-adjusted (real) return so the numbers are in today's dollars.
A widely used shortcut is the 4% rule: you can withdraw about 4% of your savings in the first year of retirement, adjust for inflation after that, and reasonably expect the money to last around 30 years. Turned around, your target nest egg is roughly 25 times your annual retirement spending. This calculator works in today's dollars using an inflation-adjusted return, so the figures reflect real purchasing power rather than inflated future numbers.
Because returns compound, the two most powerful levers are how early you start and how much you save, and time in the market usually matters more than timing it. Increasing your monthly contribution even slightly, or delaying retirement a couple of years, can close a surprising gap. If the tool shows a shortfall, it also shows the monthly amount needed to erase it, so you can adjust one number at a time.
A common starting point is that you will need roughly 70% to 85% of your pre-retirement income each year, though your own spending is the better guide. Translate that annual figure into a nest egg with the 4% rule: divide your desired annual spending by 4% (or multiply by 25) to estimate the savings required. Someone who wants $60,000 a year from savings would target around $1.5 million. Social Security and any pension reduce what your own savings must cover, so subtract those before sizing the goal.
The 4% rule holds that you can withdraw about 4% of your portfolio in the first year of retirement, adjust that amount for inflation each year after, and have a high chance of the money lasting roughly 30 years. It is a guideline, not a guarantee: early retirees or those expecting long retirements often use a more conservative 3.5%, while flexibility, spending less in down markets, meaningfully improves the odds. The rule is useful mainly for turning a nest egg into a sustainable income, and for working backward to the savings target you need.
Where you save matters as much as how much. A 401(k) offers high contribution limits and often an employer match, which is free money you should capture first. IRAs add flexibility and investment choice. The Roth versus traditional decision comes down to taxes: traditional accounts deduct contributions now and tax withdrawals later, while Roth accounts tax contributions now and pay out tax-free in retirement. Roth generally wins if you expect a higher tax rate later; many savers split across both to hedge. Using these tax-advantaged accounts before a regular brokerage keeps more of your growth.
Because returns compound, money invested in your twenties and thirties does far more work than the same amount added near retirement. A saver who invests for ten early years and then stops can finish ahead of someone who starts a decade later and contributes for the rest of their career. The practical lesson is to start with whatever you can now, capture any employer match, and raise contributions as your income grows, rather than waiting until you can afford the 'right' amount. Time in the market is the single biggest advantage a young saver has.
Retirement planning has to account for inflation, which quietly erodes purchasing power: at 3% a year, prices roughly double over 24 years, so a fixed income buys steadily less. This calculator works in today's dollars using a real (inflation-adjusted) return so the figures stay meaningful. Social Security provides an inflation-indexed base that covers part of most retirees' needs, and delaying benefits past full retirement age increases the monthly amount. Estimating your benefit and subtracting it from your target shows how much your own savings must realistically provide.
Starting late does not mean giving up. After age 50, the IRS allows catch-up contributions above the normal limits in 401(k)s and IRAs, letting you pack in more during your peak earning years. Beyond that, the levers are straightforward: raise your savings rate as aggressively as your budget allows, delay retirement by even a couple of years to give savings more time to grow and shorten the years they must fund, and consider working part-time early in retirement. Delaying Social Security past full retirement age also boosts your monthly benefit for life. Trimming planned expenses lowers the nest egg you need in the first place, since a smaller annual spend requires proportionally less savings. A late start narrows your options but rarely eliminates them, and small, consistent increases compound faster than most people expect over even ten or fifteen years.
A common rule of thumb is roughly 25× your annual retirement spending (the 4% rule). This calculator estimates your specific number from your desired income and years in retirement.
Enter your details above to compare your projected savings to your target. If there's a gap, the tool shows the monthly amount needed to close it.
Yes, we use a real (inflation-adjusted) return, so the figures reflect today's purchasing power.
Common benchmarks suggest roughly 1x your salary saved by 30, 3x by 40, 6x by 50, and 8-10x by retirement. These are rough guides; your real target depends on your desired spending and other income like Social Security.
Under the 4% rule, $1 million supports about $40,000 a year before taxes, plus Social Security. Whether that is enough depends entirely on your spending, location, and other income, which is why a personalized estimate matters more than a round number.
See the exact formula and a worked example on our methodology page.