Dave Ramsey Retirement Calculator

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dave ramsey retirement calculator
How much will I have at retirement?How much do I need to save monthly?
Results:
Enter values and click calculate
function toggleInputs(){var type=document.getElementById('calc_type').value;if(type==='fv'){document.getElementById('monthly_row').style.display='table-row';document.getElementById('target_row').style.display='none';}else{document.getElementById('monthly_row').style.display='none';document.getElementById('target_row').style.display='table-row';}}function calculateRetirement(){var curAge=parseFloat(document.getElementById('current_age').value);var retAge=parseFloat(document.getElementById('retire_age').value);var startBal=parseFloat(document.getElementById('starting_balance').value);var rate=parseFloat(document.getElementById('annual_return').value)/100;var type=document.getElementById('calc_type').value;var adj=document.getElementById('inflation_adj').checked;if(adj){rate=rate-0.03;}if(isNaN(curAge)||isNaN(retAge)||isNaN(startBal)||isNaN(rate)){alert('Please fill in all fields with valid numbers');return;}var years=retAge-curAge;if(years<=0){alert('Retirement age must be greater than current age');return;}var months=years*12;var monthlyRate=rate/12;var resultDiv=document.getElementById('resultText');if(type==='fv'){var monthlyInv=parseFloat(document.getElementById('monthly_invest').value);if(isNaN(monthlyInv)){alert('Please enter a monthly contribution');return;}var fv=startBal*Math.pow(1+monthlyRate,months)+monthlyInv*((Math.pow(1+monthlyRate,months)-1)/monthlyRate)*(1+monthlyRate);resultDiv.innerHTML='Estimated Nest Egg: $'+fv.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+'

Based on Baby Step 4 principles, a 4% withdrawal would provide approximately $'+((fv*0.04)/12).toLocaleString(undefined,{maximumFractionDigits:0})+' per month.';}else{var target=parseFloat(document.getElementById('target_goal').value);if(isNaN(target)){alert('Please enter a target goal');return;}var fvOfStart=startBal*Math.pow(1+monthlyRate,months);var remaining=target-fvOfStart;var pmt=remaining/(((Math.pow(1+monthlyRate,months)-1)/monthlyRate)*(1+monthlyRate));if(pmt<0)pmt=0;resultDiv.innerHTML='Required Monthly Investment: $'+pmt.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+'

This is the amount you should aim to invest every month to hit your goal.';}}

Calculator Use

The dave ramsey retirement calculator is designed to help you follow the financial principles taught by Dave Ramsey, specifically Baby Step 4. This step encourages you to invest 15% of your household income into tax-advantaged retirement accounts like a 15(k) or Roth IRA. This tool helps you visualize how those monthly contributions, combined with compound interest and a long-term mindset, can build a substantial nest egg.

Whether you are just starting your career or are mid-way through your working years, this calculator allows you to project your future wealth based on the 10-12% average annual returns often cited by Ramsey for growth stock mutual funds.

Current Age & Retirement Age
The number of years you have left to invest is the most powerful variable in the equation. Dave Ramsey calls compound interest the "eighth wonder of the world."
Expected Annual Return
Ramsey suggests using 10-12% based on the historical S&P 500 average. For a more conservative "real-world" view, you can check the inflation-adjustment box.
Monthly Contribution
According to Baby Step 4, this should be 15% of your gross annual household income.

How It Works

The calculator uses the standard future value formula for an annuity due (since contributions are typically made at the beginning of each period). The logic follows the "Total Money Makeover" strategy: consistent investing over long periods in growth-oriented assets.

FV = P(1 + r)^n + PMT × [((1 + r)^n – 1) / r] × (1 + r)

  • FV: Your total nest egg at retirement.
  • P: Your starting balance (what you have saved today).
  • PMT: Your monthly contribution.
  • r: Monthly interest rate (Annual rate / 12).
  • n: Total number of months (Years until retirement × 12).

Calculation Example

Scenario: You are 30 years old, have $5,000 saved, and earn $60,000 a year. Following Baby Step 4, you invest 15% of your income ($750/month) into mutual funds with a 10% average return. You plan to retire at 65.

Step-by-step projection:

  1. Years to grow: 35 years (420 months)
  2. Starting Balance: $5,000
  3. Monthly Investment: $750
  4. Annual Return: 10% (0.833% monthly)
  5. Future Value of Initial $5,000: ~$164,000
  6. Future Value of Monthly $750: ~$2,855,000
  7. Total Retirement Nest Egg: ~$3,019,000

Common Questions

Why does Dave Ramsey suggest a 10-12% return?

Dave Ramsey points to the historical long-term average of the S&P 500, which has been approximately 10-12% since its inception. While market volatility exists, he teaches that long-term investors in diversified growth stock mutual funds should expect these averages over a 30-year timeframe.

What is the 15% rule (Baby Step 4)?

Baby Step 4 is to invest 15% of your gross household income for retirement. This step is only taken AFTER you are debt-free (except the house) and have a full 3-6 month emergency fund. Investing 15% provides a balance between living well today and being prepared for tomorrow.

Should I account for inflation in the dave ramsey retirement calculator?

While Ramsey often speaks in "future dollars" to keep the math simple and exciting, accounting for inflation (usually 3%) gives you a "real dollar" result. This tells you what that future nest egg will actually buy in today's purchasing power. This calculator includes a checkbox to help you see both perspectives.

How much can I safely withdraw in retirement?

Dave Ramsey has controversially suggested you can withdraw 7-8% if you are earning 12%. However, most financial planners (and the famous Trinity Study) recommend a 4% withdrawal rate to ensure you don't outlive your money. Our calculator displays a 4% estimate for a safer, more conservative outlook.

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