Retirement Savings Calculator
Project your retirement pot from current savings, monthly and employer contributions and expected returns, in future and today's money, the income it supports at your withdrawal rate, and the contribution needed to hit a target.
| In today's money | — |
|---|---|
| Total you contribute | — |
| Employer contributions | — |
| Investment growth | — |
| Sustainable income at the withdrawal rate | — |
| Against your target | — |
| Monthly contribution needed to hit the target | — |
Projection by age
In short
Retirement pot = current savings and every future contribution compounded at the expected return; divide by (1 + inflation)^years for today's money and multiply by the withdrawal rate (commonly 4%) for the sustainable income. 40,000 saved at 35 with 900 a month combined contributions at 6% grows to about 1.32 million by 65 — 629,000 in today's money.
Who this is for: Anyone with a pension, 401(k), SIPP or savings plan checking whether contributions are on track.
What moves the number
- Time: contributions in your 20s and 30s do most of the work — in the example, investment growth is more than half the final pot. Starting ten years later typically halves the result.
- Employer money: a match is an immediate 50–100% return; always contribute enough to capture all of it.
- Real vs nominal: the headline is in future money; the today's-money line is what it will actually buy. Plan on the real figure.
- Withdrawal rate: 4% of the pot a year is the classic rule for a 30-year retirement; 3–3.5% is safer for early retirement or low expected returns.
- Return assumptions: 6–7% nominal is a common long-run equity-heavy assumption; use 4–5% for a cautious mix. Fees of 1% a year cut the final pot by roughly a fifth over 30 years.
Works for a 401(k) or IRA, a UK workplace pension or SIPP, an Australian super, a GCC savings scheme or any invested fund — it is contribution and compounding arithmetic, not tax rules.
See also: Compound Interest & Savings Growth Calculator, UK Salary Sacrifice & Pension Tax Relief Calculator.
Assumptions
- Monthly compounding at the expected return; your and employer contributions rise by the growth rate each year.
- Today's-money values deflate by (1 + inflation)^years; sustainable income = pot × withdrawal rate.
- Contribution needed for a target is solved numerically; tax, contribution limits and state pensions are excluded.
Worked example
Projected pot at 65: about 1,320,000 — roughly 629,000 in today's money. You contribute 292,000, the employer 146,000 and growth supplies about 842,000. At 4% that funds 52,800 a year (about 25,200 in today's money). For a 40,000-a-year target in today's money you would need a pot of 2.1 million, or about 1,240 a month from you.
Frequently asked questions
How much should I save for retirement?
A common target is 15% of gross income including employer contributions, from your mid-20s; later starters need 20–25%. Enter a target income to see your own number.
Is 6% a realistic return?
It is a mid-range long-term assumption for a diversified, equity-heavy portfolio before fees; results are very sensitive to it, so test 4% and 8% too.
What is the 4% rule?
Withdraw 4% of the pot in year one and raise it with inflation each year; historically a balanced portfolio sustained that for 30 years in most periods.
Does this account for tax?
No — contributions, growth and withdrawals are taxed differently in every country and account type; treat the outputs as pre-tax.
How much do I need to retire?
A common target is 25× the annual income you want from savings (the 4% rule); enter your target income and the calculator shows the pot and contribution required.
Should I include the state pension?
Yes, reduce your target income by the state pension you expect so the pot only needs to cover the rest.
People also ask
How much do I need to retire?
A common rule is 25 times your annual spending (the 4% rule) — $1 million supports about $40,000 a year — adjusted for pensions, state benefits and retirement age.
How much should I save each month?
15% of gross income from your 20s is the usual target; starting at 40 needs closer to 25%.
What return should I assume?
5–7% nominal for a diversified portfolio, 3–4% after inflation; use the lower figure for a conservative plan.
Does inflation matter?
Yes — at 3% inflation today's $40,000 lifestyle costs $72,000 in 20 years; the calculator shows both nominal and real values.
What is the 4% rule?
Withdrawing 4% of the starting balance, inflation-adjusted each year, has historically lasted 30 years in most market histories; many planners now use 3.5%.
Should I include my house?
Only if you plan to downsize or release equity; otherwise count it as a cost saving (no rent), not a withdrawable asset.
Related calculators
Found an error? Report it — tell us the inputs, the result you got, what you expected and the rule or source. Confirmed corrections are published within a week.