Inputs
Example Data
| Scenario | Current Age | Retire Age | Current Savings | Annual Contribution | Return | Inflation | Spending | Withdrawal Rate |
|---|---|---|---|---|---|---|---|---|
| Sample A | 30 | 50 | $50,000 | $12,000 | 7% | 2.5% | $45,000 | 4% |
| Sample B | 35 | 55 | $120,000 | $15,000 | 6% | 3% | $55,000 | 3.5% |
Formula Used
- Real return: real ≈ (1+return)/(1+inflation) − 1.
- Retirement spending need: need = max(spending − other income, 0).
- Tax gross-up: gross need = need / (1 − tax rate).
- Target portfolio: target = gross need / withdrawal rate.
- Annual projection: end = start × (1+return) + contribution.
- Growing contributions (FV): FV = C₀ × ((1+return)ⁿ − (1+growth)ⁿ)/(return − growth).
How to Use This Calculator
- Enter your current age, planned retirement age, and current savings.
- Set annual contributions and optional employer match and growth.
- Choose realistic return, inflation, and a withdrawal rate.
- Add desired retirement spending and any other retirement income.
- Press Calculate to see results above the form.
- Use CSV or PDF exports to compare scenarios over time.
Savings Rate Drives Retirement Timing
A higher savings rate compresses the timeline to financial independence because more cash is invested and less lifestyle spending must be funded later. If you save 50% of income, you are roughly funding one future year of spending every year you work. This calculator models your annual contributions, optional match, and contribution growth to show how quickly that invested stream compounds. Including a 2% annual contribution increase often materially shifts the curve, especially over 15 to 25 years.
Inflation Turns Nominal Goals Into Real Needs
Spending entered in today’s money must be inflated to the retirement year to stay realistic. At 2.5% inflation, prices double about every 28 years, so a 45,000 budget today becomes about 74,000 in 20 years. The projection also shows “end value in today’s dollars,” discounting each year’s balance back by inflation for a clearer purchasing power view.
Safe Withdrawal Rate Sets Your Target Portfolio
The target portfolio is driven by the withdrawal rate and taxes. A 4% withdrawal rate implies a 25× multiple of annual spending. If you need 60,000 net and expect a 10% effective tax, the gross need is about 66,667 and the target becomes roughly 1,666,675. Lowering the withdrawal rate to 3.5% increases the multiple to about 28.6×, raising the required nest egg.
Return Assumptions Shape Compounding And Risk
Expected return is powerful, but uncertain, so sensitivity testing matters. Compounding at 7% on 50,000 grows to about 96,700 in 10 years without new contributions, while 5% grows to about 81,400. Because this tool compounds annually and adds contributions at year end, you can compare conservative and optimistic paths. Use the real return estimate to gauge growth after inflation.
Scenario Testing Improves Confidence And Decisions
Use the export buttons to save scenarios and compare trade‑offs: retire at 45 versus 50, increase contributions by 5%, or reduce spending by 10%. The “required first‑year contribution” metric estimates what you would need, starting now, to hit the target by your chosen age. If the earliest FI age is later than you want, adjust contributions, spending, or timeline until the plan becomes resilient. Small changes compound; rerun calculations after major life events.
FAQs
1) What does “earliest FI age” mean?
It is the first age where your projected portfolio meets the required target for that year’s spending need and withdrawal rate, including any tax gross-up and inflation adjustment if selected.
2) Should I enter spending in today’s dollars?
Use today’s dollars if you think in current purchasing power. The calculator will inflate spending and other income to the retirement year, and it will also show balances discounted back to today’s value for comparison.
3) How is employer match handled?
The match is applied as a percentage boost to your annual contribution. For example, a 50% match turns a 10,000 contribution into 15,000 invested each year, before any contribution growth is applied.
4) Why can the “required first-year contribution” differ from my plan?
It is the estimated starting annual contribution, growing at your selected contribution growth rate, needed to reach the target by your chosen retirement age. If it is higher than your current input, you are short of the goal.
5) What does a negative gap indicate?
A negative gap means your projected retirement balance exceeds the target portfolio at the selected retirement age. You can consider retiring earlier, spending more, lowering the withdrawal rate, or increasing safety margins with more conservative assumptions.
6) How do I use the exports effectively?
Run multiple scenarios, download each CSV or PDF, and compare key metrics like target portfolio, projected balance, and sustainable withdrawals. This makes trade-offs clear when adjusting savings, returns, inflation, and retirement age.