Retirement Savings Calculator
Projects the total nest egg you'll have at retirement based on your current savings, monthly contributions, and an expected annual return (7% if left blank). Use it when planning how much to save each month to hit a retirement target.
Last updated: September 2026
Formula below · 3 sources (ssa.gov, IRS, dol.gov) · Updated Sep 2026
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About this calculator
This calculator combines two components of retirement wealth: the future value of your existing savings and the future value of your ongoing monthly contributions. The formula is: FV = currentSavings × (1 + r)^n + monthlyContribution × 12 × ((1 + r)^n − 1) / r, where r is the expected annual return (7% if you leave the field blank) and n = retirementAge − currentAge. The first term compounds your current lump sum. The second term treats your annual contributions (monthly × 12, deposited at the end of each year) as an ordinary annuity and sums their compounded growth. 7% is roughly the long-run real (after-inflation) return of a stock-heavy portfolio, so with 7% the result is approximately in today's dollars; with a nominal return such as 9-10% the result is in future dollars. Understanding this formula helps you see how starting early dramatically amplifies your final balance through compound interest.
How to use
Suppose you are 30 years old, plan to retire at 65, have $20,000 saved, and contribute $500/month. n = 65 − 30 = 35 years. Step 1: FV of current savings = $20,000 × (1.07)^35 = $20,000 × 10.6766 = $213,532. Step 2: Annual contribution = $500 × 12 = $6,000. FV of contributions = $6,000 × ((1.07)^35 − 1) / 0.07 = $6,000 × 138.237 = $829,421. Step 3: Total = $213,532 + $829,421 = $1,042,953. Enter your own numbers to see your projected balance.
Frequently asked questions
What annual return rate does this retirement savings calculator assume?
It uses the return you enter, or 7% a year if you leave the field blank. 7% is close to the long-run inflation-adjusted (real) return of a broadly diversified stock portfolio, so a 7% projection is roughly in today's dollars. Nominal stock returns have historically been closer to 10%, and portfolios with more bonds return less. In practice your returns will vary year to year; treat the result as a planning estimate, not a guarantee, and try a lower rate such as 5% to stress-test the plan.
How does starting to save earlier affect my retirement balance?
Starting earlier has a profound effect because of compound interest — your earnings generate their own earnings over time. For example, with this calculator's annual compounding, saving $500/month from age 25 to 65 at 7% yields about $1.20 million, while the same contribution from age 35 yields about $567,000. That ten-year head start more than doubles the outcome. The formula's exponent n (years until retirement) is the key driver: even small increases in n produce large jumps in the final balance.
Why does the calculator use annual contributions instead of monthly compounding for contributions?
The formula multiplies monthly contributions by 12 to get an annual figure and then applies annual compounding. This is a simplified annuity approximation that slightly underestimates the balance compared to true monthly compounding, but the difference is small over long horizons. For a rough planning tool it is entirely adequate. If you need precise monthly-compounded results, a more detailed compound interest calculator with monthly periods would give a marginally higher figure.