Free Financial Tool
Retirement Calculator
Project your nest egg, see if you're on track, and find your income gap using the 4% safe withdrawal rule.
Find your estimate at SSA.gov
Withdrawals are inflated annually during retirement to preserve real purchasing power (Trinity-style 4% rule).
2025 IRS Contribution Limits
401(k): $23,500/yr · Age 50+: $31,000/yr
IRA: $7,000/yr · Age 50+: $8,000/yr
Catch-up contributions available after age 50.
Projected Nest Egg
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Monthly Income (4% rule)
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Income Gap
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Savings Last
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Years to Retirement
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Total Contributions
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Total Growth
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Balance: Accumulation & Drawdown
Year-by-Year Projection
| Age | Contributions | Interest | Balance |
|---|
How the Retirement Calculator Works
The calculator models two phases: accumulation (before retirement) and drawdown (during retirement).
// Accumulation (annual, with growing contributions):
Balance = Balance × (1 + r_pre) + MonthlyContrib × 12
MonthlyContrib grows by contrib_increase% each year
// Drawdown (4% rule income):
Monthly income = NestEgg × 0.04 / 12
Balance = Balance × (1 + r_post/12) − monthlyWithdrawal
Worked Example
Age 35, retire at 65, current savings $50,000, monthly contribution $1,000, 7% pre-retirement return:
- Nest egg at 65: ≈ $2.4M
- Monthly income (4% rule): ≈ $8,000/month
- At $5,000 desired income: surplus of $3,000/month — well funded
- Savings last: 50+ years at that rate
The 4% Rule Explained
Based on the Trinity Study, withdrawing 4% of your portfolio in year one (adjusting for inflation annually) historically sustained a 30-year retirement. At a 5% post-retirement return with 3% inflation, withdrawals of 4% annually leave a real buffer. Conservative planners use 3–3.5%.
Frequently Asked Questions
How much do I need to retire?▾
Using the 4% safe withdrawal rule, you need 25× your desired annual retirement spending. For $60,000/year in retirement, you need $1,500,000. This nest egg, invested at 5% in retirement, should sustain withdrawals for 30+ years.
What is the 4% rule?▾
The 4% rule states you can withdraw 4% of your portfolio in year one of retirement, then adjust for inflation each year, and your money should last 30 years. It's based on the Trinity Study (1998) using 50/50 stock/bond portfolios. Your nest egg × 0.04 / 12 = sustainable monthly income.
What is the 401(k) contribution limit for 2025?▾
For 2025, the 401(k) contribution limit is $23,500/year ($31,000 if age 50+ with catch-up contributions). The IRA limit is $7,000/year ($8,000 if age 50+). Maxing out these accounts is one of the most powerful ways to build retirement wealth.
Should I include Social Security in retirement planning?▾
Yes, but conservatively. Social Security provides a guaranteed monthly income floor. The average benefit in 2025 is ~$1,907/month. You can get your estimate at SSA.gov. Including it reduces the income gap your nest egg must cover.
What return should I assume for retirement planning?▾
A common approach: 7% annual return before retirement (growth-oriented portfolio), 5% during retirement (more conservative). Adjust down by 1–2% for inflation to get a real return. Always run a conservative scenario to stress-test your plan.
Related Calculators
Example Scenarios — See the Real Numbers