Retirement Savings Calculator

FAQ

How much do I need to retire?

A common rule of thumb is the 25x rule: multiply your expected annual expenses by 25 to get your target nest egg. This is based on the 4% safe withdrawal rate — the idea that you can withdraw 4% of your portfolio annually with a low chance of running out of money over a 30-year retirement.

What annual return should I use?

The S&P 500 has historically returned about 10% per year nominally, or ~7% after inflation. 7% is a commonly used planning assumption for a diversified stock portfolio over a long time horizon. Use a lower number (5–6%) for a more conservative estimate or a mixed stock/bond portfolio.

Does this account for inflation?

This calculator uses nominal (before-inflation) returns. To get real purchasing power, use a real return rate (subtract estimated inflation from your expected return). If you expect 7% nominal returns and 3% inflation, use 4% as your rate for inflation-adjusted projections.

What is the 4% rule?

The 4% rule suggests you can safely withdraw 4% of your portfolio in year one of retirement, then adjust that amount for inflation each year, with a high probability of the money lasting 30 years. A $1,000,000 portfolio would support $40,000/year in withdrawals under this rule.