Plan your 401k, IRA and savings goals.
Plan your 401k, IRA and savings goals.
This calculator projects your retirement balance based on your current savings, monthly contributions, employer match, and expected investment return. It then uses the widely accepted 4% safe withdrawal rule to estimate how much monthly income your nest egg can sustainably provide.
The 4% rule is based on the "Trinity Study," which found that retirees could withdraw 4% of their portfolio annually (adjusted for inflation) with a very high probability of not running out of money over a 30-year retirement.
Most financial planners recommend saving 10โ15% of your gross income for retirement, starting as early as possible. A common target is to have 10โ12ร your final salary saved by retirement age. If you're starting late, a higher savings rate (20%+) is needed to catch up.
An employer match is essentially free money โ your employer contributes a percentage of what you contribute, up to a limit. A common structure is "50% match up to 6% of salary," meaning if you contribute 6%, your employer adds another 3%. Always contribute at least enough to capture the full match โ it's an instant 50% return on that money.
A 401k is employer-sponsored with higher contribution limits ($23,500 in 2026). An IRA is individual with lower limits ($7,000 in 2026 for those under 50). Both offer tax advantages: traditional accounts reduce taxable income now; Roth accounts grow tax-free for retirement. Many advisors suggest contributing to both if possible.
The S&P 500 has historically returned about 10% annually before inflation, approximately 7% after inflation. A diversified portfolio (stocks + bonds) typically targets 6โ8%. More conservative allocations (more bonds) may target 4โ5%. The calculator uses nominal returns โ consider subtracting 2โ3% for inflation to see real purchasing power.