Retirement Calculator
Project your retirement balance and monthly income, including Social Security, a pension, inflation, and a shortfall/surplus versus your income goal.
How the calculation works
Compounds your current savings plus your monthly contribution and employer match at your expected annual return, converted to a monthly rate, over the years until your retirement age. Your projected monthly retirement income combines an annual withdrawal from that balance (4% is a common rule of thumb for a withdrawal that historically had a good chance of lasting 30 years, though it isn't a guarantee) with any Social Security and pension income you enter. Comparing that total to your desired monthly income shows a shortfall or surplus. Because a dollar decades from now buys less than a dollar today, this also shows your projected balance and income in today's purchasing power, using your expected inflation rate.
Formula
Projected Balance = Current Savings × (1 + r)^n + (Contribution + Employer Match) × [((1 + r)^n − 1) ÷ r], with r and n in monthly terms. Monthly Income = Projected Balance × Withdrawal Rate ÷ 12 + Social Security + Pension. Shortfall/Surplus = Monthly Income − Desired Monthly Income. Real (inflation-adjusted) values divide by (1 + inflation)^years.
Examples
Age 35 to 65, $30,000 saved, $500/month, 7% return, no Social Security entered
$853,480.42 projected balance; $2,844.93/month income (a $1,155.07/month shortfall vs. the $4,000 goal)
Age 30 to 67, $15,000 saved, $400/month + $200 employer match, 7% return, $2,200/month Social Security
$1,456,374.31 projected balance; $7,054.58/month income (a $2,054.58/month surplus vs. the $5,000 goal)