Find out whether your savings will last through retirement, and what the gap is.
The calculator runs a two-phase projection. During accumulation, it compounds your existing savings and monthly contributions at the expected return rate. At retirement, it computes the present value of your desired income stream (inflation-adjusted) to find how large a nest egg you actually need. The difference is your surplus or shortfall — and the implied withdrawal rate tells you whether you're within the sustainable range the 4% rule describes.
Nest egg at retirement
Future value = Current savings × (1 + monthly rate)^periods + Monthly contribution × ((1 + rate)^periods − 1) / rate
Required nest egg (inflation-adjusted annuity)
Required nest egg = Monthly gap × (1 − (1 + real rate)^−n) / real rate
Projections are illustrative only. Actual investment returns vary and are not guaranteed. Consult a financial advisor before making retirement planning decisions.
The 4% rule states that withdrawing 4% of your portfolio annually has historically sustained 30-year retirements. This calculator shows your implied withdrawal rate so you can compare it to that benchmark. Above 5% is generally considered risky; below 3% is very conservative.
Because your money keeps earning returns during withdrawal. The present-value formula accounts for continued growth, letting a smaller lump sum fund the same income stream. The inflation adjustment further reduces the required amount when returns exceed inflation.
Yes — most advisors recommend a more conservative portfolio in retirement (e.g. 50/50 equities/bonds) to reduce sequence-of-returns risk. A 5% withdrawal-phase return is a reasonable default; feel free to adjust based on your planned asset allocation.
Indirectly. Enter your expected Social Security benefit in 'Other Monthly Income'. The calculator subtracts it from your desired income, so only the gap is drawn from the portfolio.