Retirement Calculator
Plan your retirement savings goal. Calculate how much you need to save for a comfortable retirement based on your current savings, contributions, and expected returns.
How to use the Retirement Calculator
Using this free retirement calculator is simple. Enter your current age, desired retirement age, current savings, monthly contribution amount, and expected annual return rate. Click Calculate Retirement to see your projected retirement corpus.
The calculator uses the future value of money formula to project how your current savings and monthly contributions will grow over time. It also provides an estimated monthly income based on the 4% safe withdrawal rule.
What this calculator shows you
- ✓Projected retirement corpus — The total amount you will have at retirement.
- ✓Total contributions made — The total amount you will have contributed over time.
- ✓Investment gains — The growth on your investments through compound interest.
- ✓Estimated monthly income — Based on the 4% safe withdrawal rule.
- ✓Years until retirement — The number of years you have to save and invest.
- ✓Savings rate indicator — Shows if you are saving enough relative to a target.
How is retirement calculated?
The retirement calculation uses the future value of money formula, which accounts for compound interest over time. The formula used is:
Months = (Retirement Age − Current Age) × 12
FV of Savings = Current Savings × (1 + Monthly Rate)Months
FV of Contributions = Monthly Contribution × ((1 + Monthly Rate)Months − 1) ÷ Monthly Rate
Retirement Corpus = FV of Savings + FV of Contributions
Monthly Income = Retirement Corpus × 4% ÷ 12