Retirement Calculator

How much do I need to retire?

Start from spending, not a round number. Estimate what you'll spend each year in retirement, subtract guaranteed income such as Social Security or a pension, and the remainder is what your savings must provide. Multiply that by 25 for a rough target. Someone who needs $36,000 a year from savings is aiming for about $900,000 in today's dollars.

A second common benchmark is replacing 70–80% of pre-retirement income from all sources, since some costs (commuting, payroll taxes, retirement saving itself) fall away. Your own budget beats either rule.

The 4% rule

The 4% rule comes from William Bengen's 1994 study of US market history. He found that withdrawing 4% of a stock-and-bond portfolio in the first year of retirement, then raising the dollar amount with inflation each year, would have lasted at least 30 years in every period he tested. The calculator uses your withdrawal rate the same way, applied to the inflation-adjusted balance, to estimate first-year income.

It's a rule of thumb, not a guarantee. Retiring early, a long life expectancy, high fees or a bad market early in retirement argue for a lower rate such as 3–3.5%; flexibility to cut spending in bad years makes a higher rate more workable.

2026 401(k) and IRA limits

• 401(k), 403(b), most 457 plans and the TSP: $24,500 of your own contributions, plus a $8,000 catch-up from age 50 ($32,500 total). Ages 60–63 get a higher catch-up of $11,250.
• IRA (traditional or Roth): $7,500, plus a $1,100 catch-up from age 50.
• Employer contributions don't count toward your own limit.

The calculator caps your contribution at the 401(k) limit plus the age-50 catch-up, and grows that cap with inflation each year, since the IRS adjusts it for inflation. It doesn't model the ages 60–63 super catch-up or IRA contributions on top; if you save in an IRA too, add that to your savings percentage.

Employer match

Many employers match part of what you contribute, such as 50% of the first 6% of salary (a 3% match) or 100% of the first 4%. Enter the match as the percent of salary your employer actually adds when you contribute enough to get all of it. Contributing less than the amount needed for the full match leaves free money behind, which is why it's usually the first savings goal. Check your plan's vesting schedule too: matched money may not be fully yours until you've worked there a set number of years.

Why today's dollars matter

A million dollars 30 years from now won't buy what a million buys today. At 2.5% inflation, prices roughly double in 28 years. The calculator divides the future balance by the growth in prices between now and retirement, so the today's-dollar figure and the monthly income are in purchasing power you can compare against your current budget. The Federal Reserve targets 2% inflation over the long run; 2.5–3% is a cautious planning assumption.

Social Security and other income

This projection covers savings only. Most retirees also receive Social Security, which replaces a larger share of income for lower earners. Your personalized estimate is on your Social Security statement at ssa.gov, and the age you claim matters: benefits are reduced if you claim before your full retirement age and increased if you wait until 70. The age calculator finds your full retirement age from your birth year.

How this calculator works

The projection runs one year at a time. Each year your balance grows by the return rate, then that year's contributions are added: your percentage of salary (capped at the inflation-adjusted 401(k) limit) plus your employer's percentage. Your salary then rises by the raise rate. At retirement, the balance is divided by (1 + inflation)^years to express it in today's dollars, and the first-year income is that amount times your withdrawal rate. Contributions are treated as made at year end, a slightly conservative assumption. For a simpler projection with just a fixed monthly deposit, the compound interest calculator is quicker.

Sources

The formulas on this page come from the published research below. Last updated October 11, 2026. This calculator gives estimates for general information. It isn't medical advice, so check anything important with a qualified professional.

1. Internal Revenue Service. 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (IR-2025-111).Used for: 2026 elective deferral limit, age-50 catch-up ($8,000), ages 60–63 catch-up and IRA limits
2. Bengen WP. Determining Withdrawal Rates Using Historical Data. Journal of Financial Planning. 1994;7(4):171–180.Used for: The 4% initial withdrawal rate used for retirement income