Retirement

Retirement Calculator

It projects a retirement pot from current savings, ongoing contributions, employer match, expected return and years to retirement.

AdvancedUpdated 2026-07-28Free · no sign-up

Balance at age 65

$1,554,322

≈ $5,181 per month at 4% withdrawal
Your contributions
Employer match
Investment growth

You put in

$250,920

Employer adds

$77,220

Growth

$1,226,182

Years invested

33

Monthly income

$5,181

Annual income

$62,173

What it calculates

It projects a retirement pot from current savings, ongoing contributions, employer match, expected return and years to retirement.

Why it matters

Small differences in contribution rate compound into very large differences over a working life.

Who it's for

Anyone with a 401(k), workplace pension, IRA or SIPP who wants to test whether their plan is on track.

Formula

FV = B(1+r)^n + C·[((1+r)^n − 1) ÷ r]  |  income = FV × withdrawal ÷ 12
P₀
Current balance
c
Annual contribution including employer match
r
Expected annual return
t
Years until retirement

Worked example

$50,000 saved, $600/month, 6% for 25 years

  1. 1Existing pot: 50,000 × 1.06²⁵ ≈ 214,600
  2. 2Contributions: 7,200 × [(1.06²⁵ − 1)/0.06] ≈ 395,000

≈ $609,000 at retirement

How the retirement calculator works

The projection combines the future value of your current balance with the future value of an annuity for contributions. Employer match is free return and should always be captured in full.

Contributions compound monthly at your expected annual return. Employer match is applied to the lesser of your contribution rate and the match cap.

Retirement income uses the classic 4% safe withdrawal rule — adjust it if you expect a longer or shorter retirement.

Common mistakes

  • Ignoring fees — a 1% annual charge can consume roughly a fifth of a lifetime pot.
  • Using nominal returns and forgetting inflation when judging whether the pot is 'enough'.
  • Leaving employer match on the table.

Tips and best practice

  • Raise contributions automatically with each pay rise.
  • Model 4% and 7% returns to see the realistic range, not a single number.

Frequently asked questions

How much do I need to retire?

A common rule of thumb is 25× your annual spending, matching a 4% initial withdrawal rate.

What return should I assume?

Balanced portfolios have historically returned around 5–7% nominal over long periods. Be conservative for planning.

Does employer match count toward my contribution?

Yes for growth purposes, though it may sit outside your personal contribution limit.

Is this figure in today's money?

No, it is nominal. Subtract expected inflation from your return to see purchasing power.

Related calculators

Further reading

Methodology & trust

Formula source
Future value of a lump sum plus annuity.
Last updated
2026-07-28
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