Retirement Calculator
Project your retirement savings and income
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Fill in the form and click Calculate
How to Use This Calculator
Enter your current age, retirement age, current savings, and monthly contribution. The calculator projects your savings at retirement and shows if you are on track to meet your desired income using the 4% withdrawal rule.
Worked Example: Age 35, $50K Saved, $800/Month, Retiring at 65
Priya is 35, has $50,000 already in retirement accounts (RRSP + employer match), and contributes $800/month going forward. She targets retirement at age 65 (a 30-year horizon) with a balanced 60/40 portfolio she models at 6.5% nominal annual return, compounded monthly. She wants $60,000/year in retirement income (today's dollars). The walkthrough below shows whether she is on track and what the 4% withdrawal rule says about her gap.
Step 1 — Project current savings forward. $50,000 compounded at 6.5% monthly for 30 years grows to $50,000 × (1 + 0.065/12)360≈ $347,000. The starting $50,000 alone — without any new contributions — becomes roughly $347K because of compounding over a long horizon.
Step 2 — Project contributions as an annuity. $800/month for 360 months at the same 6.5% builds to PMT × [((1 + r/n)nt − 1) / (r/n)] = $800 × [(1.00542360 − 1) / 0.00542] ≈ $876,000. Total cash Priya deposits over 30 years is $800 × 360 = $288,000; the remaining $588,000 is compound growth on those deposits.
Step 3 — Combine into projected nest egg. $347,000 (from starting balance) + $876,000 (from contributions) = $1,223,000 at age 65.
Step 4 — Apply the 4% rule for sustainable withdrawal. The 4% rule says a balanced portfolio can support roughly 4% of its starting value as inflation-adjusted withdrawals over a 30-year retirement. $1,223,000 × 4% = $48,920/year (before tax) — about $4,080/month gross.
Step 5 — Compare to target. Priya wants $60,000/year, the projection delivers ~$48,920, leaving a gap of about $11,080/year. To close it, she needs roughly $277,000 more in the nest egg ($11,080 / 0.04). Working backwards: she needs to lift her contribution by about $250/month — to ~$1,050/month — to get to the $60,000/year target. Alternatively, working two extra years to age 67 lifts the projection to roughly $1,425,000 (a 4% draw of $57,000) and largely closes the gap with no contribution change.
Retirement Savings Milestones
Rule of thumb: Save these multiples of your salary by each age:
- Age 30: 1x annual salary
- Age 40: 3x annual salary
- Age 50: 6x annual salary
- Age 60: 8x annual salary
- Age 67: 10x annual salary
Frequently Asked Questions
What is the 4% rule?
The 4% rule suggests withdrawing 4% of your retirement savings in the first year, then adjusting for inflation each year after. Historically, this approach has allowed savings to last 30+ years.
How much should I save for retirement?
A common guideline is to save 10-15% of your income for retirement. Aim to have 1x your salary saved by 30, 3x by 40, 6x by 50, and 8x by 60. Your specific needs depend on your lifestyle and goals.
What return should I expect on my investments?
The S&P 500 has historically returned about 10% annually before inflation, or about 7% after inflation. A balanced portfolio of stocks and bonds might return 5-7% after inflation. Be conservative in your estimates.
Should I include Social Security in my planning?
Social Security can supplement retirement income but should not be your only plan. The average benefit is about $1,800/month. Consider it a bonus and save as if it may not be there.