Simple Retirement Calculator

Estimate how much you will have saved by the time you retire.

Understanding Your Retirement Strategy

Planning for retirement is one of the most critical financial tasks you will undertake. A simple retirement calculator helps you visualize how today's habits translate into tomorrow's security. By inputting your current age, savings, and expected growth, you can see the powerful effect of compound interest over time.

Key Factors in Retirement Planning

The Time Horizon: The number of years between your current age and your retirement age is your greatest asset. The longer the "runway," the more time your investments have to recover from market volatility and grow exponentially.

Monthly Contributions: Consistency is often more important than the initial lump sum. Even small monthly additions to your retirement fund can result in hundreds of thousands of dollars in difference over a 30-year period.

Annual Rate of Return: This is the average interest or growth you expect from your investment portfolio (stocks, bonds, or mutual funds). Historically, the stock market has returned roughly 7-10% annually, but many conservative planners use a figure of 5-6% to account for inflation and fees.

Example Retirement Calculation

Imagine a 30-year-old individual who currently has $10,000 saved. If they contribute $500 every month and achieve a 7% annual return, by the time they reach age 65, their portfolio would be worth approximately $894,000. Of that total, only $220,000 would be their actual deposits—the rest is the result of compound interest.

How to Use This Information

If your projected "Nest Egg" looks smaller than you hoped, consider three adjustments: increasing your monthly contribution, extending your retirement age by a few years, or looking for ways to optimize your investment returns. Even moving your retirement age from 65 to 67 can significantly boost your total savings due to the "peak" compounding years at the end of the cycle.