Calculator Inputs
Enter annual values only. Use the same currency for salary, retirement income sources, taxes, healthcare, and debt.
Example Data Table
This example shows one sample planning scenario with annual values and the resulting ratios.
| Salary | Bonus | Other Income | Savings | Payroll Taxes | Work Expenses | Target Ratio | Pension | Benefits | Portfolio | Passive | Part-Time | Retirement Taxes | Healthcare | Debt | Gross IRR | Net IRR | Annual Gap |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 90,000 | 10,000 | 5,000 | 12,000 | 8,000 | 5,000 | 75% | 18,000 | 24,000 | 15,000 | 6,000 | 4,000 | 5,000 | 7,000 | 2,000 | 63.81% | 66.25% | 7,000 |
Formula Used
1. Current income base
Current income base = Current salary + Bonus or commission + Other earned income
2. Adjusted working-life spending base
Adjusted working-life spending base = Current income base − Savings contributions − Payroll taxes − Work expenses
3. Target retirement spending
Target retirement spending = Adjusted working-life spending base × Target replacement ratio
4. Total retirement income
Total retirement income = Pension + Government benefits + Portfolio withdrawals + Rental or passive income + Part-time income
5. Net retirement income
Net retirement income = Total retirement income − Retirement taxes − Retirement healthcare − Retirement debt
6. Total retirement budget
Total retirement budget = Target retirement spending + Retirement taxes + Retirement healthcare + Retirement debt
7. Gross income replacement ratio
Gross IRR = (Total retirement income ÷ Current income base) × 100
8. Net income replacement ratio
Net IRR = (Net retirement income ÷ Adjusted working-life spending base) × 100
9. Income gap
Income gap = Total retirement budget − Total retirement income
How to Use This Calculator
- Enter your current annual salary, bonus, and any other earned income.
- Add annual savings, payroll taxes, and work-related costs to estimate your spending base.
- Choose your target replacement ratio percentage for retirement planning.
- Enter expected retirement income sources such as pension, benefits, withdrawals, and passive income.
- Include retirement taxes, healthcare costs, and debt payments for a more realistic target.
- Press the calculate button to show results above the form.
- Review the table, readiness badge, and chart for planning insight.
- Use the CSV and PDF buttons to save your results.
Frequently Asked Questions
1. What is an income replacement ratio?
It estimates how much of your working income can be replaced during retirement. A higher ratio usually supports better lifestyle continuity when taxes, healthcare, debt, and spending assumptions are realistic.
2. What replacement ratio is usually considered good?
Many planners begin around 70% to 85%, but the right target depends on housing costs, savings habits, tax changes, family support, and healthcare expectations.
3. Why subtract savings, payroll taxes, and work costs?
These expenses often shrink or disappear after full-time work ends. Removing them helps estimate the lifestyle spending you may actually want to preserve.
4. Should I enter monthly or annual figures?
Use annual amounts for every field. If you only know monthly values, multiply each one by 12 before entering it to keep the calculations consistent.
5. Does this calculator replace a full retirement plan?
No. It is a planning aid, not personalized financial advice. Inflation, longevity, investment returns, policy changes, and medical costs can materially change actual outcomes.
6. What does a negative gap mean?
A negative gap means your planned retirement income exceeds your estimated retirement budget. That suggests a surplus, though conservative stress testing is still wise.
7. Why are both gross and net ratios shown?
Gross ratio compares total retirement income with total current income. Net ratio compares spendable retirement income with your adjusted working-life spending base.
8. Can I use this for early retirement planning?
Yes, but review benefit timing, bridge income, and healthcare costs carefully. Early retirees often face larger gaps because public benefits may start later.