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Retirement
Savings Calculator

Find out exactly how much you need to retire — and whether you're on track. Uses the proven 4% rule and 25× multiplier to calculate your retirement number.

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Retirement Savings Calculator

Enter your details to see your retirement projection and savings gap.

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Savings Projection

How Much Money Do You Need to Retire?

The most widely used framework is the 4% rule, developed from the Trinity Study of historical market returns. It states that you can safely withdraw 4% of your portfolio per year for 30 years without running out of money. This means your retirement goal is 25× your annual expenses (because 1/0.04 = 25).

  • Need $3,000/month → $36,000/year → need $900,000
  • Need $5,000/month → $60,000/year → need $1,500,000
  • Need $8,000/month → $96,000/year → need $2,400,000

How Much Should You Save Per Month?

Financial advisors commonly recommend saving 15% of gross income for retirement. However, the right amount depends on your starting age, existing savings, and target retirement date. Use this calculator to find your personal monthly savings target.

A 25-year-old with $0 saved who wants to retire at 65 with $5,000/month needs to save approximately $650/month at a 7% average return. The same goal starting at 35 requires about $1,400/month — more than double.

Retirement Accounts: 401(k), IRA, and Roth

  • 401(k) 2026 limit: $23,500 ($31,000 if 50+). Pre-tax contributions reduce your taxable income today
  • Traditional IRA: $7,000/year ($8,000 if 50+). Tax-deductible if you qualify
  • Roth IRA: Same limits. After-tax contributions, but tax-free growth and withdrawals
  • Employer match: Always contribute at least enough to capture the full employer match — it's free money

Frequently Asked Questions

What is the 4% rule?
The 4% rule (from the 1994 Trinity Study) suggests you can withdraw 4% of your retirement portfolio in the first year, then adjust for inflation annually, and have a high probability of the portfolio lasting 30 years. It's based on historical US stock and bond market returns. Some newer research suggests 3.3% may be safer given lower expected future returns.
What if the stock market crashes right before I retire?
This is called "sequence of returns risk" — experiencing poor returns early in retirement can severely damage your portfolio even if long-term averages are fine. Strategies to mitigate this include: keeping 1–2 years of expenses in cash, maintaining a bond allocation, and using a flexible withdrawal strategy during downturns.
Should I prioritize retirement savings or paying off debt?
A common framework: (1) contribute enough to get any employer 401(k) match — always, (2) pay off high-interest debt (above 7%), (3) max your Roth IRA, (4) pay off moderate debt, (5) contribute more to 401(k). Low-interest debt (under 4%) can be carried while investing, since expected investment returns likely exceed the interest cost.
Can I retire early (FIRE)?
FIRE (Financial Independence, Retire Early) uses the same 25× framework but often targets 30–33× expenses to account for a 50–60 year retirement horizon. Many FIRE practitioners use a 3.5% withdrawal rate. The key is extreme savings rate — 50–70% of income — for 10–15 years.
What return rate should I assume?
7% is a conservative estimate for a diversified stock portfolio (inflation-adjusted historical average). If your portfolio includes bonds, use 5–6%. For conservative projections, use 5%. Note: past performance doesn't guarantee future results, but 7% has been a reliable long-term estimate for diversified equity portfolios.