Retirement Savings Calculator

The Goal: Building Your Nest Egg

Saving for retirement is a long-term goal that relies heavily on consistent contributions and the power of compound growth. This calculator helps you visualize how your current savings plan might play out over time.

How Your Projection is Calculated

This tool uses the standard future value (FV) formula to estimate your portfolio's growth. It considers:

• Current Savings (Initial Amount): The money you've already accumulated. This amount grows based on the estimated annual return.
• Monthly Contributions: The new money you add regularly. These contributions also start growing and compounding over time. Can you afford to save more? Try the Latte Factor Calculator.
• Estimated Annual Return: The average rate at which your investments are expected to grow each year. This is a crucial assumption – higher returns lead to significantly larger outcomes, but also typically involve more risk. Fees can eat into this; check our Investment Fee Analyzer.
• Time Horizon: The number of years between your current age and your target retirement age. The longer your time horizon, the more significant the impact of compounding. Thinking of retiring early? See our FIRE Calculator.

The formula essentially calculates: FV = PV*(1+r)^n + PMT*[((1+r)^n - 1)/r], adapted for monthly contributions and compounding, where PV is your current savings, PMT is your monthly contribution, r is the monthly interest rate, and n is the total number of months until retirement.

Interpreting the Results

The calculator shows your estimated total nest egg value at retirement. It also breaks down how much of that final value came from your direct contributions (initial savings + monthly additions) versus how much came from investment growth (Total Interest Earned). Seeing the large contribution from interest highlights the importance of starting early and staying invested. Once you reach retirement, determine your safe spending with the 4% Rule Calculator.