Skip to content

Retirement Calculator

Project your 401(k) or IRA balance at retirement from your savings, contributions, employer match and expected return, then see the income the 4% rule would give you, in today's dollars too.

Maintained by Jairo TunisseLast updated Editorial policy

Your details

Contributions grow with salary.

50% = 50¢ per dollar.

Of salary.

How we calculated this

The calculator grows your current savings month by month at the expected annual return. Each month it adds one-twelfth of your yearly contribution and your employer's match, and it raises your salary, and so your contributions, once a year. It then converts the final balance into today's dollars and applies the 4% rule.

B(m) = B(m−1) × (1 + i) + (you + match) / 12, i = (1 + r)^(1/12) − 1 match = salary × min(you %, limit %) × match % 4% rule income = 0.04 × balance

Worked example (default inputs)

Age 35 → 67 (32 years), $50,000 saved, $75,000 salary +2%/yr you 10% + match 50% of the first 6%: $331,703 + $99,511 balance at 7% = $1,809,969 ÷ (1 + 2.5%)^32 = $821,310 today 4% rule: $72,399 a year ($32,852 in today's dollars)

Retirement is the longest-running savings goal most people have, and small choices compound over decades: a higher contribution rate, capturing the full employer match, or starting a few years earlier. Seeing the projected balance next to the income it could support turns an abstract account balance into a number you can plan a life around.

How the retirement projection works

Your balance grows from three sources: what you contribute, what your employer adds, and investment growth. The calculator turns the annual return into an equivalent monthly rate so that monthly contributions and yearly compounding line up. An employer match such as "50% up to 6%" means the company adds 50 cents for each dollar you save, on contributions up to 6% of your salary.

Future dollars will buy less than today's, so the calculator divides the final balance by (1 + inflation) raised to the number of years. That "today's dollars" figure is the one to compare with your current spending.

Worked example: starting at 35

A 35-year-old with $50,000 saved earns $75,000, contributes 10% of pay and gets a 50% match on the first 6%. With 2% yearly raises and a 7% average return, the balance at 67 is about $1,809,969. Over 32 years the saver puts in $331,703, the employer adds $99,511 and investment growth supplies $1,328,755, the largest share by far.

At 2.5% inflation that balance is worth about $821,310 in today's dollars. The 4% rule suggests a first-year withdrawal of $72,399 ($6,033 a month), or $32,852 a year in today's money. Starting the same plan at 25 instead of 35 more than doubles the result, to about $3,844,132.

What the 4% rule means

The 4% rule comes from studies of historical U.S. stock and bond returns, including the 1998 Trinity study. They found that withdrawing 4% of a balanced portfolio in the first year of retirement, then raising the amount with inflation, lasted at least 30 years in most historical periods. It is a planning guide, not a guarantee: a longer retirement, a weak market early on, or high fees can make a lower rate safer.

Limits and assumptions

The projection uses one steady return, while real markets rise and fall. It ignores taxes, account fees and the annual 401(k) contribution limit, which is $24,500 for employees in 2026, before catch-up contributions. It also leaves out Social Security, pensions and home equity. Lower the return to 5% and the example balance falls to about $1,195,641, so try a cautious scenario too. To see what a future balance is worth in today’s dollars, use the inflation calculator.

Key terms

401(k)
An employer retirement plan that lets you invest part of each paycheck, often before income tax, with investment growth tax-deferred.
Employer match
Money your employer adds when you contribute, such as 50% of your contributions up to 6% of salary.
Today's dollars
A future amount divided by the expected inflation over the years, so you can compare it with prices now.
4% rule
A guideline that withdrawing 4% of your savings in the first year of retirement, then adjusting for inflation, has historically lasted about 30 years.
Nest egg
The total savings and investments you have set aside for retirement.

Frequently asked questions

How much do I need to retire?

One quick test is to divide the yearly income you want from savings by 0.04. Needing $40,000 a year on top of Social Security implies a nest egg of about $1 million in today's dollars.

What return should I use?

Long-term U.S. stock returns have averaged near 10% a year before inflation, but a mixed portfolio earns less. Many planners use 5% to 7% for a diversified portfolio; try both ends.

Does this work for an IRA?

Yes. Enter your IRA savings and contributions and set the employer match to 0%. The growth math is the same for any tax-advantaged or taxable account.

Why show today's dollars?

Prices rise over time, so a million dollars in 30 years buys much less than it does now. Converting to today's dollars shows what the balance would feel like at current prices.

Is the balance before or after tax?

Before tax. Withdrawals from a traditional 401(k) or IRA are taxed as income, while qualified Roth withdrawals are tax-free.

Related calculators