Retirement Calculator

Plan your financial independence with 2026 data and risk modeling

Your Details

40%80%100%

Projected Retirement Savings

$2,376,362

Monthly Income (4% Rule)

$7,921

Desired Monthly

$14,069

Probability of Success

36%

Based on 1,000 simulations accounting for market volatility.

You have a gap to close

-$1,844,432

You need $4,220,794 for your desired income (25x rule)

Contributions

$470,000

Growth

$1,906,362

Years to Retire

35

Growth & Drawdown Over Time

Accumulation phase (35 years) followed by 30-year drawdown at your desired income level

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How Retirement Planning Works

What is the 4% withdrawal rule?

The 4% rule is a widely-cited retirement guideline suggesting you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year, with a high probability your savings will last 30 years. It originated from the Trinity Study and assumes a balanced stock/bond portfolio. The inverse — the 25x rule — means you need 25 times your desired annual income saved before retiring.

How much do I need to retire?

Your retirement target depends on your desired lifestyle. This calculator projects your salary at retirement age, applies your chosen income replacement percentage (typically 70-80%), and multiplies by 25 to find the savings target. Social Security, pensions, and other income sources can reduce the amount you need from personal savings.

What return rate should I assume?

A 7% nominal return (before inflation) is commonly used for a diversified stock portfolio based on long-term historical averages. More conservative estimates use 5-6% to account for lower expected future returns. During the drawdown phase, a blended rate of 5-6% is typical since retirees usually shift toward a more conservative allocation with more bonds.

Why we use Monte Carlo Simulations

Most calculators use "linear" math, assuming you earn exactly 7% every single year. In the real world, markets are volatile. Our Monte Carlo engine runs 1,000 different scenarios using historical volatility. This helps identify "sequence of returns risk"—where a market crash early in retirement could deplete your savings even if your average return is high. A probability above 80% is generally considered a "safe" retirement plan.

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What is a Retirement Calculator?

A retirement calculator is a powerful financial planning tool designed to project the future value of your nest egg. It integrates your current age, retirement goals, annual contributions, and expected investment returns to determine if you are on track to maintain your desired lifestyle after you stop working.

Navigating retirement in 2026 requires accounting for inflation, market volatility, and shifting Social Security expectations. Our calculator uses the latest compound interest models and the 4% withdrawal rule to provide a realistic view of your financial future.

How to Use the Retirement Calculator

Follow these steps to build a comprehensive retirement projection:

  1. 1
    Set Your TimelineEnter your current age and the age at which you plan to retire. This "accumulation phase" is the most critical factor for compound growth.
  2. 2
    Input Current Savings and ContributionsInclude your current balances in 401(k)s, IRAs, and taxable brokerage accounts, along with your planned monthly or annual contributions.
  3. 3
    Estimate Investment ReturnsUse a realistic annual return rate (historically 7-10% for stocks, 4-5% for bonds). We recommend a conservative 7% for long-term planning.
  4. 4
    Define Your Retirement ExpensesEstimate how much you will spend annually in retirement. A common rule of thumb is 80% of your pre-retirement income.

Frequently Asked Questions

How much money do I need to retire?

A common guideline is to save 25 times your annual expenses (based on the 4% rule). If you spend $60,000 per year, you would need $1.5 million saved. However, the exact amount depends on your lifestyle, healthcare costs, Social Security benefits, and how long you expect to be retired.

What is the 4% rule for retirement?

The 4% rule suggests you can withdraw 4% of your retirement portfolio in the first year, then adjust for inflation each year after, and have a high probability of your money lasting 30 years. For example, with $1 million saved, you could withdraw $40,000 in year one. This rule is based on historical stock and bond market returns.

When can I retire?

Your retirement age depends on your savings rate, investment returns, and desired retirement income. Someone saving 20% of a $100,000 salary with a 7% return starting at age 25 could potentially retire by 55-60. Increasing your savings rate is the most powerful lever — going from 15% to 25% can shave 5-7 years off your timeline.

Retirement Rules

The 4% Rule

Withdraw 4% of your portfolio annually to ensure your money lasts 30+ years.

Target Savings Rate

15%

of gross income recommended

Rule of 72

Divide 72 by your return rate to see how many years it takes to double your money.

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