Retirement Number Calculator

Use this calculator to estimate the portfolio needed to support desired annual retirement income.

What this calculator does

The retirement number calculator works backward from desired annual income to the portfolio needed. It subtracts other retirement income so the portfolio only covers the remaining gap.

It uses:

• desired annual retirement income
• withdrawal rate
• other annual income
• portfolio income need

Retirement Number Formula

Retirement Number = (Desired Income - Other Income) ÷ Withdrawal Rate

Where:

• Desired Income = total annual retirement income target
• Other Income = pension, Social Security, or similar income
• Withdrawal Rate = annual portfolio withdrawal percentage
• Retirement Number = portfolio required

Example calculation

If:

• Desired income = 60,000
• Other income = 12,000
• Withdrawal rate = 4%
• Portfolio income needed = 48,000

Then:

• Retirement number = 48,000 ÷ 0.04
• Retirement number = 1,200,000
• Monthly income target = 60,000 ÷ 12
• Monthly income target = 5,000

The retirement number is 1,200,000.

What is retirement number?

Retirement number is the portfolio amount needed to support a desired retirement income. It is a shortcut for turning spending needs into a savings target.

Why retirement number matters

• turns income goals into an asset target
• includes other retirement income sources
• supports savings and investment planning
• helps compare withdrawal rates

When to use this calculator

• setting a retirement savings target
• estimating portfolio income needs
• adding pension or Social Security assumptions
• comparing retirement lifestyle budgets

Common mistakes

• ignoring taxes on retirement income
• forgetting inflation
• counting uncertain income as guaranteed
• using one withdrawal rate for every age

Retirement number vs FIRE number

Retirement number is a broad portfolio target for retirement income. FIRE number usually means the portfolio needed for financial independence, often before traditional retirement age.

The formulas are similar, but the planning context differs.

FAQs

What is retirement number?

Retirement number is the portfolio needed to support desired retirement income after other income sources.

How do you calculate retirement number?

Subtract other income from desired annual income, then divide by the withdrawal rate.

What is a good retirement number?

A good retirement number supports spending, taxes, inflation, healthcare, and a safety margin.

What is the difference between retirement number and FIRE number?

Retirement number is a general retirement target. FIRE number is usually tied to financial independence and early retirement.