Retirement Savings Goal Calculator
Find out exactly how much you need to save each month to retire on the income you want. Enter your age, target retirement age, desired annual income, and current savings to get your monthly savings target.
About this calculator
This calculator uses the future-value of an annuity and the 4% rule logic to back-solve for the required monthly contribution. First, the tool converts your desired retirement income into a required nest-egg using the formula: nest-egg = desiredIncome / (withdrawalRate / 100). It then subtracts the future value of your existing savings: FV = currentSavings × (1 + r)^n, where r is the monthly return and n is the number of months until retirement. The remaining gap is divided by the future value of a monthly annuity: FVA = [(1 + r)^n − 1] / r × 12. In shorthand: monthlyContribution = (nest-egg − FV_currentSavings) / FVA. A lower safe withdrawal rate means you need a larger nest-egg; a higher expected return reduces the required monthly payment.
How to use
Suppose you are 35 years old, plan to retire at 65, want $60,000/year in retirement, have $50,000 saved, expect a 7% annual return, and use a 4% withdrawal rate. Step 1 — Calculate target nest-egg: $60,000 / 0.04 = $1,500,000. Step 2 — Future value of current savings: $50,000 × (1.07)^30 = $380,613. Step 3 — Remaining gap: $1,500,000 − $380,613 = $1,119,387. Step 4 — FVA factor over 30 years at 7%: [(1.07)^30 − 1] / 0.07 × 12 ≈ 1,227.8. Step 5 — Monthly contribution: $1,119,387 / 1,227.8 ≈ $911/month.
Frequently asked questions
How much do I need to save monthly to retire comfortably at 65?
The answer depends on your current age, existing savings, desired annual income, and expected investment return. Using the 4% safe withdrawal rule, a $60,000/year retirement requires a $1.5 million nest-egg. A 35-year-old with $50,000 saved earning 7% annually would need to save roughly $911/month. Starting earlier dramatically reduces the required monthly amount due to the power of compound interest.
What is a safe withdrawal rate and why does it matter for retirement planning?
The safe withdrawal rate (SWR) is the percentage of your retirement portfolio you can withdraw each year without running out of money over a 30-year retirement. The most commonly cited figure is 4%, based on the Trinity Study, meaning a $1 million portfolio supports $40,000/year. A lower SWR like 3% requires a larger nest-egg but provides more security. Your SWR is a critical input because even a half-percent change can shift your required savings by hundreds of thousands of dollars.
How does my current savings affect my required monthly retirement contribution?
Your existing savings grow at your expected annual return over the years remaining before retirement, directly reducing the gap you need to fill with new contributions. For example, $50,000 growing at 7% for 30 years becomes about $380,000, cutting your savings target significantly. The earlier you start saving and the more you have accumulated, the less you need to contribute each month. This compound growth effect is why even small contributions early in your career have outsized long-term impact.