What does Retirement Savings Calculator do?
Retirement savings calculator: project your balance from savings, monthly contributions and your own return, then see it in today’s money.
- Price
- Free
- Account
- Not required
- Processing
- Entirely in your browser; your data and files are not uploaded
- Works on
- Any modern browser on desktop, tablet or phone
- Category
- Financial Calculators
How to use the retirement savings calculator
- Enter your current retirement savings and how much you (and any employer) add each month.
- Optionally enter how much the monthly contribution rises each year.
- Enter the years until retirement and your own assumptions for the annual return and inflation.
- Read the projected balance, its value in today’s money and the year by year table, and try a lower return to see a cautious case.
Worked example
$50,000 saved, $500 a month for 30 years, 6% return, 2.5% inflation
The projected balance is $774,431, of which $230,000 is money paid in and $544,431 is growth. In today’s money, after 2.5% inflation a year, that is worth about $369,204, the same as growing at a real return of 3.41% a year. The return and inflation figures are examples only.
How it works
The balance is simulated month by month. Each month it grows at (1 + R)1/12 − 1, the monthly equivalent of the annual return R, and then the month’s contribution is added. Contributions rise by your chosen percentage after every 12 months. The value in today’s money is balance ÷ (1 + inflation)years. With flat contributions the result matches the closed form S(1 + R)n + c × ((1 + i)12n − 1) ÷ i.
Assumptions
- Return and inflation are your own estimates and are applied evenly every year. Real returns vary and can be negative.
- The return is after investment fees and taxes; enter a lower figure if fees or tax apply.
- Contributions are made at the end of each month without breaks.
Frequently asked questions
What return should I use?
There is no correct figure; it depends on your investments and is not guaranteed. Try a few values, for example a cautious and a hopeful case, and see how much the result changes. Past returns are not a reliable guide.
Why show the balance in today’s money?
Prices rise over decades, so a future balance buys less than the same number of dollars today. Dividing by cumulative inflation shows what the balance would be worth at today’s prices, which is easier to compare with your current spending.
Does it include tax and government pensions?
No. Tax rules, contribution caps, employer matching rules and pensions differ by country. Enter contributions and returns that already reflect them.
Limitations
- A projection, not financial advice or a guarantee.
- Does not model withdrawals, fees separately, market volatility or sequence of returns.