Your Results
Example data
| Scenario | Age (Now → Retire) | Savings | Monthly Add | Spend Today | Inflation | Projected vs Needed |
|---|---|---|---|---|---|---|
| Balanced | 35 → 65 | $50,000 | $800 | $4,500 | 2.5% | Depends on returns and income offsets |
| Early retire | 30 → 55 | $75,000 | $1,500 | $5,000 | 3.0% | Higher need due to longer withdrawals |
| Lean | 40 → 67 | $40,000 | $600 | $3,200 | 2.0% | Lower need, easier to reach goal |
Formula used
-
Inflate spending to retirement:
Spendingret = Spendingtoday × (1 + i)Y
i = inflation rate, Y = years until retirement. -
Project savings at retirement (with monthly contributions):
FV = PV × (1 + rm)N + PMT × [((1 + rm)N − 1) / rm]
rm = monthly return, N = months to retirement. -
Needed nest egg at retirement (to fund withdrawals):
PV = Pmt × [1 − (1 + r)−T] / r
T = years in retirement. PV is increased by one-time costs and legacy goal. -
Implied safe spending from projected nest egg:
Pmt = PV × r / [1 − (1 + r)−T]
How to use this calculator
- Enter your ages, savings, and monthly contribution.
- Set your desired monthly spending in today’s dollars.
- Add any expected monthly income you’ll receive in retirement.
- Choose realistic return and inflation assumptions.
- Click Calculate to view results above the form.
- Use CSV or PDF to save and share your scenario.
Lifestyle spending becomes a target number
A retirement lifestyle plan starts with monthly spending in today’s dollars, then converts it into retirement-year dollars using inflation. This calculator compounds your target over the years to retirement, so a $4,500 goal at 2.5% inflation is materially higher at age 65. Treat this as a budget baseline, then add or remove categories like housing, healthcare, travel, gifts, and family support.
Income offsets reduce pressure on savings
Many households receive income streams such as pensions, government benefits, annuities, or rental cash flow. The tool subtracts this expected income from projected spending to estimate the net withdrawal need. If income is reliable and inflation-linked, your required nest egg can drop sharply. If income is uncertain, use a conservative value, include taxes, and review multiple scenarios.
Returns, taxes, and inflation should be stress-tested
Investment returns are entered separately for the accumulation phase and the withdrawal phase. That distinction matters because portfolios often become more conservative in retirement. The calculator applies a simple effective tax rate to gross-up withdrawals, reflecting that some income may be taxable. It also estimates an approximate real return by comparing retirement returns to inflation, highlighting when purchasing power may erode.
The nest-egg estimate is a present value problem
To translate annual withdrawals into a single required balance at retirement, the calculator uses an annuity present value approach. It adds one-time retirement costs and a legacy goal as extra amounts needed at retirement. This structure makes it easy to quantify tradeoffs, such as funding a $20,000 relocation, paying off debt, or preserving $50,000 for heirs or charitable giving.
Closing the gap with contributions and timing
The projected savings value includes current savings, monthly contributions, and compounding over the months until retirement. If a shortfall appears, the tool computes the implied monthly contribution needed to reach the required balance, holding other assumptions constant. You can also improve the outcome by delaying retirement, reducing spending, increasing income offsets, adjusting investment risk, or revisiting the legacy goal while tracking progress annually. Small changes compound: adding $100 monthly, working one extra year, or trimming discretionary costs can often shift the gap by tens of thousands over time.
FAQs
What does “needed at retirement” represent?
It estimates the balance required at retirement to fund your net withdrawals for the planned retirement years, plus one-time costs and any legacy target, using your retirement return assumption.
Why are there separate return rates?
Returns can differ before and after retirement because portfolios often shift toward lower volatility. Using two rates helps model accumulation growth and withdrawal sustainability more realistically.
How is inflation used in the calculation?
Your spending goal starts in today’s dollars and is compounded by the inflation rate for the years until retirement, producing a nominal spending estimate for the retirement start year.
How does the tax rate affect results?
The calculator gross-ups the net monthly need so withdrawals reflect an effective tax drag. Higher taxes increase the required balance unless other income offsets or spending changes.
What if my projected savings are below the goal?
Review scenarios by increasing monthly contributions, delaying retirement, lowering spending, adding income sources, or reducing one-time costs and the legacy target. Recalculate after each adjustment.
Is this output financial advice?
No. It is an educational estimate based on your inputs and simplified assumptions. Consider consulting a qualified professional and updating figures as markets, inflation, and life plans change.