Precision Utility
Retirement
Calculator
Full SS Age
67
4% Rule
Safe Draw
Find out if your retirement savings are on track. Enter your current age, target retirement age, existing savings, monthly contributions, expected return rate and desired annual retirement income to see your projected balance, sustainable monthly income using the 4% rule, any income gap, and how many years your savings will last.
Retirement Parameters
Projected Savings at Retirement
$0
Monthly Income (4% Rule)
$0 / mo
Retirement Income Gap
$0 / yr
Years Savings Will Last
0 yrs
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How the retirement calculator works
This retirement calculator projects the future value of your savings using compound interest with monthly contributions. Start by entering your current age and your target retirement age. The gap between the two determines your accumulation period — the years your investments have to grow before you begin drawing income.
Enter your current retirement savings balance and how much you plan to save each month. The calculator applies your expected annual rate of return, compounded monthly, using the future value formula: FV = PV(1+r)^n + PMT[((1+r)^n - 1) / r], where r is the monthly rate and n is total months until retirement.
Once your projected balance is calculated, the tool applies the 4% rule to estimate a sustainable monthly retirement income. The 4% rule is a widely used guideline suggesting you can safely withdraw 4% of your portfolio per year in retirement, with a strong probability of your money lasting 30 or more years.
The calculator also compares your sustainable income to your desired annual retirement income. If there is a gap, the result card shows the shortfall in red. If your projected savings meet or exceed your goal, a green "On Track" indicator appears. Finally, the tool simulates year-by-year withdrawals — accounting for 4% continued portfolio growth in retirement — to estimate exactly how many years your savings will last.
What you need to know about retirement planning
Social Security full retirement age: For anyone born in 1960 or later, the full Social Security retirement age is 67. You can claim as early as 62 with permanently reduced benefits, or delay until 70 for an 8% annual increase. This calculator focuses on personal savings and does not include Social Security benefits, so your actual retirement income may be higher than shown.
The 4% rule: Originally based on the Trinity Study, the 4% rule suggests withdrawing 4% of your portfolio in year one of retirement and adjusting for inflation each subsequent year. Under historical market conditions, this approach has a roughly 95% success rate of lasting 30 years. It is a guideline, not a guarantee — actual results depend on market performance and inflation.
Impact of inflation: A 7% nominal return typically translates to roughly 4-5% after inflation. Over 30+ years, inflation significantly erodes purchasing power. Consider using a real (inflation-adjusted) return rate in this calculator for a more conservative projection. A $60,000 income today will need to be substantially higher in 30 years to maintain the same standard of living.
Catch-up contributions after 50: The IRS allows additional catch-up contributions starting at age 50. For 401(k) plans, the 2025 catch-up limit is $7,500 (total $30,500). For IRAs, the catch-up is $1,000 (total $8,000). If you are behind on your retirement savings, maximizing these catch-up contributions in your 50s and 60s can make a meaningful difference to your projected balance.
Frequently asked questions
How much money do I need to retire comfortably?
A common guideline is to save 25 times your desired annual retirement income. For example, if you want $60,000 per year in retirement, you would need approximately $1.5 million saved. This retirement calculator helps you see whether your current savings rate puts you on track to reach that target.
What is the 4% rule for retirement withdrawals?
The 4% rule suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation each subsequent year. Research shows this approach gives your savings a high probability of lasting at least 30 years. This calculator uses the 4% rule to estimate your sustainable monthly retirement income.
What age can I start collecting Social Security?
You can start collecting Social Security as early as age 62 with reduced benefits. Full retirement age is 67 for anyone born in 1960 or later. Delaying benefits until age 70 increases your monthly payment by about 8% per year beyond full retirement age. This calculator focuses on personal savings, not Social Security.
How does this retirement calculator estimate my projected savings?
The calculator uses the future value formula with monthly compounding. It takes your current savings, adds your monthly contributions each month, and applies your expected annual return rate divided into monthly increments. The result is your projected portfolio balance at your chosen retirement age.
What does the retirement income gap mean?
The retirement income gap is the difference between your desired annual retirement income and the sustainable income your savings can produce using the 4% rule. A positive gap means your savings fall short, and you may need to save more, work longer, or adjust your retirement lifestyle expectations.
Should I increase my retirement contributions after age 50?
Yes. The IRS allows catch-up contributions after age 50 — an extra $7,500 per year for 401(k) plans and $1,000 for IRAs in 2025. If you are behind on retirement savings, maximizing catch-up contributions can significantly boost your projected balance. Use this calculator to see how increasing monthly savings impacts your outcome.