Retirement Calculator

Project a nest egg from savings and contributions, then compare it with the amount needed for retirement income.

What does this Retirement Calculator do?

This Calculator projects a nest egg from current savings and monthly contributions, estimates the nest egg required to support a desired annual income in retirement, and shows the gap plus the monthly contribution needed to close a shortfall.

Formula

Accumulation compounds monthly. Projected nest egg = Future value of current savings + Future value of end-of-month contributions. Required nest egg uses the ordinary annuity present-value formula on desired annual income across the retirement years at the retirement return rate.

Worked example

With no starting savings, a 100 monthly contribution, a 0% return, and 10 years to retirement, the projected nest egg is 12,000. With no desired retirement income, the required nest egg is 0.

Assumptions and limitations

The Calculator assumes fixed returns, fixed contributions, and annual retirement withdrawals with no taxes, fees, Social Security, pensions, or inflation adjustments unless you change the inputs yourself.

Common questions

How is this different from the Savings Goal Calculator?

Savings Goal solves for a contribution to hit a stated target. This Tool projects a nest egg and compares it with retirement income needs. What if the projected nest egg already covers the need? The required monthly contribution can be zero.

Methodology

The Calculator uses exact decimal arithmetic for monthly accumulation and annual annuity discounting, then rounds values only for display.