Loans & savings

Retirement Calculator

Enter where you are now and the yearly income you'd like in retirement. Everything is shown in today's money, so the inflation rate is taken out of the return for you.

From savings only. Leave out pensions and Social Security.

The share of savings you'd take out each year. 4% is a common rule of thumb.

Your result will appear here.

How it's calculated

The real return is the return after inflation: (1 + return) ÷ (1 + inflation) − 1. Your savings and monthly contributions are grown at that rate until retirement.

The savings you'd need is your target income divided by the withdrawal rate. At 4%, every 1,000 of yearly income needs 25,000 saved.

Needed = Yearly income ÷ Withdrawal rate

How to do it in Excel

=FV(((1+7%)/(1+2.5%))^(1/12)-1, 30*12, -800, -50000)
Projected savings at 65, in today's money.
=60000/4%
The nest egg needed for 60,000 a year.