Retirement Savings Calculator

Use this calculator to project how much your retirement savings could be worth by retirement age.

What this calculator does

The retirement savings calculator estimates the future value of your current savings plus regular monthly contributions. It helps you see whether your current saving pace can build the nest egg you want.

It uses:

• current age
• retirement age
• current savings
• monthly contribution and expected return

Retirement Savings Formula

FV = P(1 + r)^n + PMT × (((1 + r)^n - 1) / r)

Where:

• FV = future value at retirement
• P = current savings
• r = monthly return rate
• n = months until retirement
• PMT = monthly contribution

Example calculation

If:

• Current savings = 50,000
• Monthly contribution = 750
• Expected annual return = 7%
• Time to retirement = 30 years

Then:

• Monthly return = 7% ÷ 12
• Months = 30 × 12 = 360
• Future value = about 1,160,000
• Total contributions = 320,000
• Interest earned = about 840,000

The projected retirement savings balance is about 1,160,000.

What is retirement savings?

Retirement savings is the money set aside to fund future living costs after work income stops or reduces. It usually includes investment accounts, pensions, retirement accounts, and other long-term savings.

Why retirement savings matters

• shows whether your current plan is realistic
• highlights the power of starting early
• helps compare different contribution levels
• supports long-term retirement planning decisions

When to use this calculator

• planning a target retirement age
• testing a new monthly contribution
• comparing return assumptions
• checking progress toward a retirement goal

Common mistakes

• using a return assumption that is too optimistic
• forgetting inflation will reduce purchasing power
• ignoring fees and taxes
• stopping at the projected balance without comparing it to spending needs

Retirement savings vs retirement income

Retirement savings is the accumulated balance you build before retirement. Retirement income is the annual or monthly cash flow that balance can support after retirement.

A large savings balance matters only if it can produce enough income for your expected expenses.

FAQs

What is retirement savings?

Retirement savings is money accumulated to support future expenses after full-time work ends.

How do you calculate retirement savings?

Project current savings forward with compound growth, then add the future value of regular contributions.

What is a good retirement savings target?

A useful target depends on expenses, retirement age, other income, and withdrawal rate. Many people start by estimating 25 times annual retirement spending.

What is the difference between retirement savings and retirement income?

Savings is the portfolio balance. Income is the amount withdrawn or received each year from that balance and other sources.