ποΈ Retirement Savings Calculator
Project your nest egg with compound growth, contributions, and your employer match.
Projected Balance at Retirement
Estimates for planning only, not financial advice.
How to Use This Calculator
Enter your age, retirement age, current savings, and monthly contribution, then add your annual salary and employer match percentage. The calculator compounds your savings monthly at your expected return, adds the employer match as extra contributions, and shows what you will have at retirement, how much of it is growth versus your own money, and what it could pay you each month using the 4 percent rule.
Enter your Current Age and Retirement Age. The gap between them is the number of years compound growth has to work for you.
Enter your Current Savings (all retirement accounts combined) and your own Monthly Contribution. If you are 50 or older, include any extra catch-up contributions here.
Enter your Annual Salary and the Employer Match as a percent of salary. A 4 percent match on an $85,000 salary adds about $283 per month of free money to your contributions.
Set the Expected Annual Return. Try 7 percent for a realistic stock-heavy mix, or 5 percent to stress-test a conservative plan. Read the verdict to see if your income replacement is on track.
Compound Growth Does the Heavy Lifting
Compound growth means your returns start earning their own returns. In the early years your contributions are most of the balance, but somewhere around year 15 to 20 the growth overtakes them, and from there the curve bends upward fast. This is why time matters more than timing: someone who starts at 25 and saves modestly usually ends up with more than someone who starts at 40 and saves aggressively, simply because the money spent more years compounding.
The employer match is the highest-return investment you will ever make. If your employer matches 50 percent up to 6 percent of salary, every dollar you contribute up to that limit instantly becomes $1.50. No market return can beat that. Contribute enough to capture the full match before you save a dollar anywhere else.
401(k) vs IRA, and Catch-Up Contributions After 50
A 401(k) lives at your employer. Limits are high, and many plans include a match, but your investment menu is limited to what the plan offers. An IRA lives wherever you open it, with total investment freedom and lower annual limits. Both come in traditional and Roth flavors. Traditional contributions lower your taxable income now, and you pay tax when you withdraw in retirement. Roth contributions are made with after-tax money, but qualified withdrawals are tax-free, which is valuable if you expect to be in a higher bracket later.
Once you turn 50, the IRS raises the annual contribution limits so late starters can catch up. The extra amounts change most years, so check the current figures, but the principle is simple: if you are behind, your 50s and 60s are your best window to add larger contributions while you are usually at peak earnings.
Worked Example
A 35-year-old earning $85,000 has $25,000 saved, contributes $600 a month, and gets a 4 percent employer match ($3,400 a year, about $283 a month). With 30 years to retirement at a 7 percent average return, the total monthly investment is $883. The $25,000 starting balance grows to about $203,000, and the 360 monthly contributions of $883 grow to about $1,077,000. Projected balance: roughly $1,280,000.
Total contributions along the way: $25,000 plus 360 x $883 = about $343,000. Growth does the rest: roughly $938,000, nearly three times the money actually contributed. At a 4 percent withdrawal rate, that balance pays about $4,269 a month, roughly 60 percent of the pre-retirement salary, before adding Social Security. Most planners target 70 to 80 percent income replacement including Social Security, so this person is close but would benefit from a slightly higher contribution.
Reading Your On-Track Verdict
The calculator compares your estimated monthly income to your current salary. Hitting 70 percent or more replacement from savings alone (Social Security stacks on top) reads as on track. Between 40 and 70 percent means you are building real wealth but should probably raise your contribution. Under 40 percent is a flag to act now: raise your savings rate, delay retirement a few years, or both. Delaying retirement is brutally effective because it adds contribution years and shortens the payout period at the same time.
Estimates for planning only, not financial advice. Check ssa.gov for official Social Security estimates and consider a qualified financial planner for personal decisions.
Frequently Asked Questions
How much should I save for retirement?
A common rule of thumb is to aim for a nest egg worth 10 to 12 times your final salary, and to save 15 percent of your income starting in your 20s or 30s, including any employer match. The earlier you start, the less you need to save each month because compound growth does more of the work. Use this calculator to test different savings rates and see how your projected balance changes.
What is a 401(k) employer match, and why does it matter?
An employer match is extra money your employer adds to your 401(k) when you contribute, usually something like 50 cents on the dollar up to 6 percent of your salary. It is literally free money: skipping it leaves part of your compensation on the table. Always contribute at least enough to get the full match before saving anywhere else for retirement.
What is the difference between a 401(k) and an IRA?
A 401(k) is tied to your employer, has high annual contribution limits, and often includes a match. An IRA is opened on your own and has lower limits, but it gives you more investment choices. Both come in traditional (tax break now, pay tax later) and Roth (pay tax now, withdraw tax-free later) versions. Many people use both: the 401(k) up to the match, then an IRA, then back to the 401(k).
What are catch-up contributions after age 50?
Once you turn 50, the IRS lets you contribute extra beyond the normal annual limits: extra to a 401(k) and extra to an IRA each year. These higher limits are designed for people who got a late start on saving and want to make up ground in their final working years. If you are over 50, enter your planned higher contribution in the monthly contribution field.
Why does the return rate matter so much?
Because compounding is exponential, even small differences in your average annual return create huge differences over decades. A one-point higher return over 30 years can add hundreds of thousands of dollars to your balance. But higher returns usually mean more risk, so run the calculator at a conservative 5 to 7 percent to see a realistic picture, not just the optimistic one.
What is the 4 percent rule?
The 4 percent rule is a guideline suggesting you can withdraw about 4 percent of your portfolio in your first year of retirement, then adjust for inflation each year, and your money should last about 30 years. This calculator uses it to turn your projected balance into an estimated monthly income. It is a planning shortcut, not a guarantee: actual safe withdrawal rates depend on market conditions and your lifespan.