Retirement Calculator 2025: Turn Your Numbers Into a Real Plan
Planning for retirement is not just about picking an age and hoping the money will be there. You need a clear idea of how much income you’ll want, how long that money needs to last, and what your current savings can realistically grow into. This retirement calculator is designed to answer a simple question in plain language: “Am I on track, or do I need to change something?”
By adjusting your current savings, monthly contributions, expected investment return, inflation, and retirement age, you can instantly see whether your projected nest egg looks strong or needs work. If you want to go deeper into how growth works, you can also experiment with our Compound Interest Calculator alongside this tool.
How Much Money Do You Really Need to Retire?
A popular starting point is the 4% rule. It says that if you withdraw about 4% of your portfolio in the first year of retirement and then adjust that amount for inflation, your money has a good chance of lasting around 30 years. For example, if you want $40,000 per year from your investments, you’d aim for roughly $1,000,000 in retirement savings.
This calculator uses that same logic behind the scenes. It compares:
- What you want to spend each year in retirement (adjusted for inflation), and
- What a “safe” withdrawal might look like based on your projected savings.
If the safe withdrawal amount is higher than your inflation-adjusted target, you’ll see a surplus. If it’s lower, you’ll see a gap and a lower readiness score, which is your signal to tweak your plan.
What the Retirement Readiness Score Means
After you hit “Calculate,” you’ll see a Retirement Readiness Score in percentage terms:
- 100% or more: You look broadly on track based on your assumptions.
- 75–99%: Close, but consider increasing savings or working a little longer.
- 50–74%: You’re building something, but the current plan likely won’t be enough.
- Below 50%: Time for serious changes to savings, spending, or retirement timing.
Think of the score as a dashboard light, not a final verdict. You can instantly test scenarios like “What if I retire 3 years later?” or “What if I save $200 more each month?” until the score looks healthier.
Key Inputs You Should Play With
1. Monthly Contribution
This is the most powerful lever you control. Even small increases compound over time. If you’re trying to clean up your cash flow to save more, use our Budget Calculator to spot easy wins in your spending.
2. Expected Annual Return
The calculator lets you choose your own return assumption. A balanced long-term portfolio might average somewhere around 5–7% before inflation, but markets are never smooth in real life. If you want to be conservative, try running the numbers with a slightly lower return as well.
3. Inflation Rate
Inflation slowly eats away at purchasing power. A 3% rate may not sound dramatic, but over 25–30 years it makes a huge difference. That’s why this calculator inflates your desired annual income up to your retirement year.
4. Retirement Age and Life Expectancy
Retiring just a few years later does two things at the same time: it gives your investments more time to grow and shortens the number of years you need to fund. If you want to run different age scenarios, our Age Calculator can help you quickly check milestones.
Using the Results to Adjust Your Plan
Once you see your projected nest egg and readiness score, focus on practical actions, not just the number. You could: increase monthly contributions, push your retirement age a bit, lower your expected retirement income, or aim to pay down big debts early using tools like the Loan Calculator or Debt-to-Income Ratio Calculator (if present on your site).
The goal isn’t to hit a “perfect” number, but to stay in control. Reviewing your plan once or twice a year and re-running this retirement calculator regularly is far more powerful than doing a huge calculation once and forgetting about it.
Retirement Calculator FAQ
1. How does this retirement calculator work?
The calculator grows your current savings and monthly contributions using your chosen annual return, then compares the projected total with how much income you want in retirement using a 4% “safe withdrawal” rule. It also adjusts your target income for inflation so the numbers stay realistic in future dollars.
2. Is the 4% rule always safe?
No rule is perfect, but 4% is a widely used starting point based on long-term market history. Some people prefer 3–3.5% for extra safety, especially if they plan for a very long retirement or want to leave money to family. You can mentally translate the results to a lower or higher withdrawal rate if you prefer.
3. Can I use this calculator if I don’t live in the USA?
Yes. The maths behind compounding, inflation, and withdrawal rates works the same in any currency. Just enter your local numbers and think of the dollar sign as your own currency symbol. For specific tax rules in your country, you should still check local guidance or talk to a professional.
4. How often should I update my retirement plan?
A good habit is to review things at least once a year, or after any big life change—new job, house purchase, major debt payoff, or a big change in income. Small, regular adjustments matter more than trying to “fix” everything in one go just before retirement.
5. What if my readiness score is low?
A low score is just a signal that something needs to change. Try increasing your monthly contribution, delaying retirement by a few years, trimming your planned retirement spending, or improving your debt situation using tools like our Budget and Loan calculators.
6. Does this calculator include taxes?
The projections are shown before tax, because tax rules depend heavily on your country and account types (401k, IRA, RRSP, NPS, etc.). When you make your own plan, think about whether withdrawals will be taxed as income, tax-free, or a mix of both, and adjust your target accordingly.
7. Can this help with early retirement or FIRE?
Yes. If you’re aiming for early retirement, simply set a younger retirement age and plug in your real spending target. The calculator will show you how aggressive your savings and investment plan needs to be. You can then tweak your expenses with the help of our Budget Calculator.