Retirement Savings Calculator

Retirement Savings Calculator

Projected Results

Total Savings at Retirement: $0.00

This value is adjusted for inflation, representing the "purchasing power" in today's dollars.

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How to Plan Your Retirement Savings

Planning for retirement is one of the most critical financial tasks you will ever undertake. This retirement savings calculator helps you estimate the future value of your investments by accounting for compound interest, consistent contributions, and the eroding effect of inflation.

Understanding the Key Variables

• Current Savings: The total amount of liquid assets you have already dedicated to retirement (e.g., 401k, IRA, or brokerage accounts).
• Monthly Contribution: The amount you plan to save every month. Even small increases in this number can lead to massive differences over several decades.
• Annual Investment Return: The average rate of growth you expect from your portfolio. Historically, the stock market averages around 7-10% before inflation.
• Inflation Rate: This is crucial. If you save $1 million but inflation is high, that $1 million won't buy as much in 30 years as it does today. Our calculator uses a "Real Rate of Return" to give you results in today's purchasing power.

Practical Example

Suppose you are 30 years old and plan to retire at 65. You have $25,000 saved and contribute $500 monthly. If your investments grow at 7% and inflation is 2.5%, your "real" return is approximately 4.5%.

After 35 years of growth and contributions, your projected nest egg in today's dollars would be approximately $594,435. Without adjusting for inflation, the nominal number would look much higher, but would not accurately reflect your future lifestyle capability.

Tips for Maximizing Your Nest Egg

1. Start Early: Compound interest is most powerful over long durations. Starting five years earlier can potentially double your final balance.

2. Increase Contributions with Raises: Every time you get a salary increase, divert a portion of that raise into your retirement account before you get used to spending it.

3. Watch the Fees: High management fees in mutual funds can eat away 1-2% of your annual return, which can result in hundreds of thousands of dollars lost over a lifetime.

function calculateRetirement() { var currentAge = parseFloat(document.getElementById('currentAge').value); var retirementAge = parseFloat(document.getElementById('retirementAge').value); var currentSavings = parseFloat(document.getElementById('currentSavings').value); var monthlyDeposit = parseFloat(document.getElementById('monthlyDeposit').value); var expectedReturn = parseFloat(document.getElementById('expectedReturn').value); var inflationRate = parseFloat(document.getElementById('inflationRate').value); var resultDiv = document.getElementById('retirementResult'); var totalDisplay = document.getElementById('totalNestEgg'); var breakdownDiv = document.getElementById('breakdown'); if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(currentSavings) || isNaN(monthlyDeposit) || isNaN(expectedReturn) || isNaN(inflationRate)) { alert("Please enter valid numbers in all fields."); return; } if (retirementAge 0) { fvContributions = monthlyDeposit * ((Math.pow(1 + monthlyRate, monthsToRetire) – 1) / monthlyRate); } else { fvContributions = monthlyDeposit * monthsToRetire; } var totalNestEgg = fvSavings + fvContributions; var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', }); totalDisplay.innerText = formatter.format(totalNestEgg); breakdownDiv.innerHTML = "Detailed Breakdown:" + "Years of Growth: " + yearsToRetire + "" + "Total Out-of-Pocket Contributions: " + formatter.format(monthlyDeposit * monthsToRetire) + "" + "Growth from Compounding: " + formatter.format(totalNestEgg – (currentSavings + (monthlyDeposit * monthsToRetire))); resultDiv.style.display = "block"; resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }