Retirement Calculator
A Retirement Calculator helps you plan how much you’ll have saved when you stop working. By factoring in your current age, retirement age, savings, contributions, and expected returns, it provides a clear picture of your financial future.
What is Retirement Calculator?
This tool estimates the total savings you’ll accumulate by retirement, and if you enter life expectancy, it also gives an estimate of how much monthly income you can withdraw without running out of money.
How to Use This Retirement Calculator Tool
- Enter your current age and planned retirement age.
- Add current savings and monthly contributions.
- Set the annual return rate.
- Optionally, enter your life expectancy for retirement income projection.
- Click calculate to see results, table, and chart.
Formula Behind the Calculator
FV = P(1 + r/n)^(n*t) + PMT × [(1 + r/n)^(n*t) - 1] / (r/n)
- P = current savings
- PMT = monthly contribution
- r = annual interest rate
- n = 12 (monthly compounding)
- t = years until retirement
Example Calculation
If you’re 30, plan to retire at 65, have $20,000 saved, contribute $500 monthly, and earn 6% annually: Final savings ≈ $1.2 million. If life expectancy is 85 (20 years retired), you can withdraw ≈ $5,000/month.
Benefits of Using Retirement Calculator
- Shows how much you’ll have by retirement
- Estimates safe withdrawal income
- Encourages early and consistent saving
- Helps compare different contribution strategies
FAQs about Retirement Calculator
Q: How accurate is this Retirement Calculator?
A: It gives an estimate based on inputs. Real returns and inflation may vary.
Q: Does it account for inflation?
A: This version doesn’t adjust, but you can lower your rate to simulate inflation-adjusted returns.
Q: Can I add employer contributions?
A: Yes, include them in your monthly contribution input.
Q: What happens if I retire earlier?
A: Fewer years of compounding and more years of withdrawals lower your final balance and income.
Conclusion
Use this Retirement Calculator to plan ahead. Adjust savings, rate, and age inputs to see how small changes today can make a big difference tomorrow.