Retirement savings calculatorHow much to save each month.
Start with what you want to spend. Work back to a monthly number.
How it works
Your target is your yearly spending ÷ your withdrawal rate. $40,000 ÷ 4% = $1,000,000.
Your current savings grow until you retire. We work out the fixed monthly amount that fills the gap, with growth of the yearly return ÷ 12 each month.
Save more, retire sooner
| Retire at | Years | Save each month |
|---|---|---|
| 55 | 25 | $1,164 |
| 60 | 30 | $753 |
| 65 | 35 | $491 |
| 67 | 37 | $414 |
Age 30 today, $10,000 saved, $40,000 a year to spend (target $1,000,000), 7% return.
Questions
How much do I need to retire?
A common rule of thumb: yearly spending ÷ withdrawal rate. At a 4% withdrawal rate, $40,000 a year needs $1,000,000.
What is the 4% rule?
It says you can take about 4% of your savings in the first year of retirement and adjust for prices after that, with a good chance the money lasts around 30 years. It is a guide, not a promise.
How is the monthly amount calculated?
Your current savings grow at the yearly return ÷ 12 each month. We solve for the fixed monthly deposit, added at the end of each month, that reaches your target by your retirement age.