Skip to main content
Utulio
Finance Tools

Retirement Calculator

Project your retirement savings with compound growth. See how your monthly contributions and investment returns add up over decades — and estimate your monthly income using the 4% rule.

$
$

Historical stock market average: 7% (inflation-adjusted)

Growth Over Time

Age 30Age 65

Total at Retirement

$1,188,181.10

Est. Monthly Income (4% rule)

$3,960.60

Years Until Retirement

35 years

Total Contributions

$235,000.00

Growth (interest)

$953,181.10

The 4% rule estimates a sustainable annual withdrawal of 4% of your portfolio, historically lasting 30+ years.

The Power of Starting Early

Compound interest is often called the "eighth wonder of the world." The difference between starting at 25 vs. 35 is enormous. Starting at 25 with $500/month at 7% return yields approximately $1.3 million by age 65. Starting at 35 with the same amount yields only $610,000 — less than half — despite only 10 fewer years of saving.

This calculator uses month-by-month compound growth simulation: each month, your balance grows by the monthly interest rate, and your contribution is added. This is more accurate than simple lump-sum formulas for regular contributions.

The estimated monthly retirement income uses the 4% rule: multiply your total portfolio by 4%, then divide by 12. This rate has historically supported withdrawals for 30+ years across most market scenarios. Note that individual results depend on actual market returns, which can vary significantly from historical averages.

Retirement Calculator FAQs

How much do I need to retire?
A widely used rule of thumb is the "25x rule" — save 25 times your expected annual expenses. If you plan to spend $60,000/year in retirement, you need $1.5 million. This is based on the 4% withdrawal rule, which suggests you can safely withdraw 4% of your portfolio each year without running out of money over a 30-year retirement.
What is the 4% rule?
The 4% rule (also called the "safe withdrawal rate") suggests that retirees can withdraw 4% of their portfolio in year one and adjust for inflation each subsequent year, with a high probability of not running out of money over a 30-year period. It is based on historical stock and bond market returns. This calculator uses the 4% rule to estimate monthly retirement income.
How much should I save each month?
A common guideline is to save 15% of your gross income for retirement, including any employer match. The earlier you start, the less you need to save each month due to compound growth. For example, saving $300/month starting at age 25 at 7% return yields more than saving $600/month starting at 35.
What return rate should I use?
The U.S. stock market has historically returned about 10% annually before inflation, or roughly 7% after inflation adjustment. A diversified portfolio of stocks and bonds might average 6–8%. More conservative estimates use 5–6%. For planning purposes, 7% (inflation-adjusted) is a commonly used benchmark.
What is a 401(k) and how does it help?
A 401(k) is an employer-sponsored retirement savings account in the U.S. Contributions are made pre-tax (reducing your current taxable income), and the investments grow tax-deferred until withdrawal. Many employers match a portion of your contributions — this is essentially free money. In 2025, the annual contribution limit is $23,500 ($31,000 if age 50+).
Can I retire early?
Early retirement (before 65) is achievable with higher savings rates and lower expenses. The FIRE movement (Financial Independence, Retire Early) aims for a 25–50% savings rate. The key factors are: how much you save, your investment returns, and your planned annual spending in retirement. Use this calculator to model different scenarios.

Related Tools

finance

Loan Payment Calculator

Calculate monthly loan payments, total interest, and full amortization schedule for any loan.

Open tool →
finance

Debt Payoff Calculator

Compare snowball vs avalanche strategies to become debt-free faster and save on interest.

Open tool →
finance

Compound Interest Calculator

See how your savings grow with compound interest and regular contributions over time.

Open tool →