Retirement Calculator: Are You Saving Enough?
This retirement savings calculator estimates how much you could have when you retire and how much monthly income that could support. Enter your age, retirement age, current savings, monthly contribution and an expected return.
Quick answer
Starting at 35 with $25,000 saved and adding $500 a month at 6% a year, you could have about $652,822 at 65. Using the 4% rule, that could support roughly $2,176 a month of withdrawals, before taxes.
How to use the retirement savings calculator
- Current age and retirement age: together they set how many years your money can grow.
- Saved so far: the total in your 401(k), IRA and other retirement accounts.
- Monthly contribution: what you add each month, including any employer match.
- Expected yearly return: a long-term average; test a cautious and a more optimistic rate.
Examples by monthly contribution and return
| Monthly contribution (from 35 to 65) | At 5% | At 6% | At 7% |
|---|---|---|---|
| $300 | – | $451,919 | – |
| $500 | $527,823 | $652,822 | $812,898 |
| $1,000 | – | $1,155,079 | – |
From savings to income: the 4% rule
A common planning rule says you can withdraw about 4% of your savings in the first year of retirement and adjust for inflation afterwards. $652,822 × 4% ≈ $26,113 a year. Add Social Security and any pension to get your total retirement income. Read more in the 4% rule explained.
How to boost your retirement savings
- Get the full employer 401(k) match.
- Raise your contribution by 1% of pay each year.
- Keep investment fees low.
- Use catch-up contributions from age 50.
- Delay retirement by a few years if needed: more time to save and fewer years to fund.
What the retirement savings calculator means for you
- Small monthly increases make a big difference over 30 years.
- Results are in future dollars; inflation will reduce their buying power.
- Recalculate once a year and adjust.
Frequently asked questions
How much do I need to retire?
One rule of thumb is about 25 times your yearly spending (the 4% rule). Spending $40,000 a year means about $1,000,000, before counting Social Security.
What return should I use?
Use a conservative long-term assumption and test several. Returns vary from year to year and are not guaranteed.
Does this include Social Security?
No. It shows your own savings. Check your estimated benefit at ssa.gov.
Is $500 a month enough for retirement?
It is a strong start. From 35 to 65 at 6% it could reach about $650,000 with $25,000 already saved. Increasing it over time helps a lot.
Should I include my employer match?
Yes, include all money going into your retirement accounts each month.
Related guides and calculators
Sources
- IRS: Retirement plans
- Social Security Administration
- Investor.gov (U.S. SEC): Compound interest calculator
- MonetaryReports: How we calculate
This guide is for educational purposes only and is not financial advice. The figures are estimates before taxes, fees and inflation, and real rates, returns and rules change over time.
