The 4% rule is a retirement guideline suggesting you withdraw 4% of your portfolio in the first year of retirement, then adjust that amount for inflation each year. Based on the Trinity Study, this approach historically sustained portfolios for at least 30 years with a high success rate.

Why are there two future values (nominal vs. real)?

The nominal value is the raw dollar amount you'll have at retirement. The real (inflation-adjusted) value shows what that money is worth in today's purchasing power. For example, $1 million in 30 years might only buy what $400,000 buys today at 3% inflation. The real value is more useful for planning.

Is 7% annual return realistic?

The S&P 500 has historically returned about 10% annually before inflation, or roughly 7% after inflation. However, past performance doesn't guarantee future results. A diversified portfolio might return 6-8% long-term. Conservative investors may want to use 5-6%, while those with higher stock allocations might use 7-8%.

How much should I save for retirement?

A common guideline is to save 15% of your pre-tax income for retirement. By 30, aim to have 1x your salary saved; by 40, 3x; by 50, 6x; by 60, 8x; by 67, 10x. These are benchmarks — your specific needs depend on desired lifestyle, healthcare costs, Social Security, and other income sources.

Retirement Savings Calculator

Project how your retirement savings will grow over time. See your future nest egg in today's dollars, total interest earned, and estimated monthly retirement income.

Last updated: 2026-03-07

Retirement savings projection

History

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Examples

Early Starter
Age 25, starting with $10k and $400/mo
A 25-year-old begins investing early with modest contributions and 40 years of compounding.
≈ $441k in today's dollars, $1,471/mo income
Mid-Career Catch-Up
Age 40, $150k saved, boosting to $1,000/mo
A 40-year-old with good savings who increases contributions to make up for a late start on aggressive saving.
≈ $550k in today's dollars, $1,835/mo income
Aggressive Saver
Age 30, maxing 401k with $2,000/mo
A high-income professional maximizing retirement contributions from age 30.
≈ $1.13M in today's dollars, $3,767/mo income

How retirement savings projections work

This calculator projects the growth of your retirement savings using compound interest — the process where your investment returns generate their own returns over time.

The formula combines two components: the future value of your existing savings (FV = PV × (1 + r)^n) plus the future value of regular monthly contributions (FV = PMT × ((1 + r)^n - 1) / r), where r is the monthly rate and n is total months.

The inflation-adjusted value shows what your future nest egg would be worth in today's purchasing power — this is the more realistic figure for planning since a dollar in 30 years will buy less than a dollar today.

The 4% rule is a widely-used retirement guideline: withdraw 4% of your portfolio in year one, then adjust for inflation each year. This approach historically sustained portfolios for 30+ years. The monthly income estimate divides that annual withdrawal by 12.

Frequently asked questions

What is the 4% rule?: The 4% rule is a retirement guideline suggesting you withdraw 4% of your portfolio in the first year of retirement, then adjust that amount for inflation each year. Based on the Trinity Study, this approach historically sustained portfolios for at least 30 years with a high success rate.
Why are there two future values (nominal vs. real)?: The nominal value is the raw dollar amount you'll have at retirement. The real (inflation-adjusted) value shows what that money is worth in today's purchasing power. For example, $1 million in 30 years might only buy what $400,000 buys today at 3% inflation. The real value is more useful for planning.
Is 7% annual return realistic?: The S&P 500 has historically returned about 10% annually before inflation, or roughly 7% after inflation. However, past performance doesn't guarantee future results. A diversified portfolio might return 6-8% long-term. Conservative investors may want to use 5-6%, while those with higher stock allocations might use 7-8%.
How much should I save for retirement?: A common guideline is to save 15% of your pre-tax income for retirement. By 30, aim to have 1x your salary saved; by 40, 3x; by 50, 6x; by 60, 8x; by 67, 10x. These are benchmarks — your specific needs depend on desired lifestyle, healthcare costs, Social Security, and other income sources.

Plan your retirement with confidence

Bookmark this calculator and revisit quarterly to track your progress. Small increases in contributions today compound into big differences tomorrow.

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Disclaimer

This calculator provides estimates based on constant rates of return and inflation. Actual investment returns vary year to year. The 4% rule is a guideline, not a guarantee. Consult a financial advisor for personalized retirement planning. This is not financial advice.

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