🏦 Retirement Savings Calculator
Find out if you are on track for retirement — and how much you need to save each month.
How to Use This Calculator
Use your actual ages. Most financial plans target retirement between 60 and 67, but you can model any age.
Include all retirement accounts: 401k, Roth IRA, brokerage accounts. Monthly contribution is what you add each month total.
The S&P 500 has returned approximately 10% annually since 1957. Use 7% for a conservative real-return estimate after inflation.
How much annual income do you want in retirement? The calculator uses the 25x rule (nest egg = 25× annual spending) and 4% withdrawal rate.
How Much Do You Need to Retire? The 25x Rule Explained
The most widely used rule of thumb for retirement planning is the 25x rule: you need a retirement nest egg equal to 25 times your annual spending. This is derived from the 4% rule — the withdrawal rate research shows is sustainable for a 30-year retirement without running out of money. If you plan to spend $50,000 per year in retirement, your target nest egg is $50,000 × 25 = $1,250,000.
Note: Recent research (Morningstar, 2026) suggests a 3.7% withdrawal rate may be safer given current market valuations. For a more conservative plan, use $50,000 ÷ 0.037 ≈ $1,351,000 as your target.
How Much Should You Save for Retirement by Age?
Fidelity’s widely cited benchmarks provide a simple rule for retirement savings by age:
| Age | Recommended Savings | Example ($60k salary) |
|---|---|---|
| 30 | 1× your annual salary | $60,000 |
| 35 | 2× your annual salary | $120,000 |
| 40 | 3× your annual salary | $180,000 |
| 50 | 6× your annual salary | $360,000 |
| 60 | 8× your annual salary | $480,000 |
| 67 | 10× your annual salary | $600,000 |
These are guidelines, not guarantees. Your actual target depends on your planned spending in retirement, Social Security benefits, pension income, and the age at which you plan to retire.
The Right Order for Retirement Saving in 2026
The sequence in which you save matters almost as much as the amount. Here is the optimal order:
- Step 1 — 401k up to the employer match: The match is a 100% immediate return. Never leave this on the table. 2026 limit: $23,500/year.
- Step 2 — Roth IRA to the max: Your money grows completely tax-free. 2026 limit: $7,000/year ($8,000 if 50+). Open one at Fidelity, Schwab, or Vanguard.
- Step 3 — 401k to the max: After maxing the Roth IRA, increase 401k contributions toward the $23,500 limit.
- Step 4 — Taxable brokerage: After maxing all tax-advantaged accounts, invest additional savings in a standard brokerage account.
The Impact of Starting Early: Real Numbers
| Start Age | Monthly Contribution | At Age 65 (7% return) | Total Invested | Compound Growth |
|---|---|---|---|---|
| 25 | $300/month | $879,000 | $144,000 | $735,000 |
| 35 | $300/month | $426,000 | $108,000 | $318,000 |
| 45 | $300/month | $181,000 | $72,000 | $109,000 |
Starting at 25 vs 35 — the same $300/month — produces more than double the outcome at retirement. The 10 extra years of compound growth are worth more than the contributions themselves. This is why starting with even a small amount now outperforms waiting until you can save more.
How This Calculator Works
- Projects your savings to retirement: your current balance plus monthly contributions, compounding monthly at your chosen annual return.
- Your target nest egg is 25 × the annual income you want from savings — the flip side of the “4% rule”, which estimates income as 4% of your balance in the first year of retirement.
- It does not include Social Security, pensions, taxes or inflation. Use an inflation-adjusted (real) return, such as 5–7%, to see results closer to today’s dollars.
Sources: William Bengen’s safe-withdrawal-rate research (1994) and the Trinity study (1998) behind the 4% rule; NYU Stern historical returns data for long-run return assumptions.
Last reviewed: September 2026. Results are estimates for planning purposes, not financial advice.
Frequently Asked Questions About Retirement Savings
How much should I contribute to my 401k?
At minimum, contribute enough to get your full employer match — this is free money. Beyond that, aim for 15% of your gross income total (including employer match) for retirement. If you started late (after 35), aim for 20–25% to catch up.
What expected return rate should I use?
The S&P 500 has returned approximately 10.2% annually since 1957. After adjusting for inflation (roughly 3% historically), the real return is around 7%. For planning purposes, 6–7% is a conservative and realistic assumption. Use 5% if you want a more cautious estimate.
When should I start saving for retirement?
The best time was 10 years ago. The second best time is today. Even $50/month invested at age 25 in an S&P 500 index fund grows to approximately $170,000 by age 65. Time is the most powerful variable in retirement planning.
What is the 4% rule?
The 4% rule states that you can withdraw 4% of your retirement portfolio per year with a high probability of not running out of money over a 30-year retirement. It comes from the Trinity Study (1998) and has been widely validated. On a $1,000,000 portfolio, 4% = $40,000/year or $3,333/month.