Retirement Savings Calculator

Retirement planning projects how your savings will grow between now and retirement age through a combination of existing balance growth and regular contributions. The future value formula combines two components: FV = PV(1+r)^n + PMT × [((1+r)^n − 1) / r], where PV is current savings, PMT is monthly contribution, r is monthly return rate, and n is months until retirement.

Consider saving $200/month with a $0 starting balance at 6% annual return for 30 years (360 months). Your contributions total $72,000, but compound growth brings the projected balance to approximately $200,903 — nearly triple what you deposited. Starting with $10,000 and adding $500/month for 35 years at 7% could project over $1 million, illustrating why starting early matters enormously.

The assumed return rate dramatically affects projections. Historical U.S. stock market returns average roughly 10% nominally, but planning at 6–7% accounts for inflation and market volatility. A conservative 5% projection may undershoot actual returns but prevents overconfidence. Never plan retirement solely on optimistic return assumptions.

Employer 401(k) matching is essentially free money — if your employer matches 50% of contributions up to 6% of salary, contributing at least enough to capture the full match should be your first priority. On a $60,000 salary, contributing 6% ($3,600/year) with a 50% match adds $1,800 in employer contributions annually, boosting your effective return significantly.

This calculator provides a projection, not a guarantee. Market returns fluctuate, inflation erodes purchasing power, and unexpected expenses arise. Use it to set contribution targets, evaluate whether you are on track, and see the impact of increasing monthly savings or retiring a few years later.