Retirement Calculator
Retirement Calculator
Planning for retirement is one of the most important financial goals. This calculator helps you estimate how much you'll have saved by retirement and whether you're on track.
Key Terms
- Current Savings — The amount you've already saved for retirement.
- Monthly Contribution — The amount you add to your retirement savings each month.
- Expected Return — The average annual return on your investments (stock market average is ~7-10%).
- Inflation Rate — The rate at which prices increase, reducing purchasing power over time.
- Future Value — The total amount you'll have at retirement.
- Real Return — Return after adjusting for inflation.
Retirement Savings Formula
FV = PV(1 + r)^n + PMT × [((1 + r)^n - 1) / r]
Where:
- FV = Future value
- PV = Present value (current savings)
- r = Monthly return rate
- n = Total number of months
- PMT = Monthly contribution
Retirement Planning Tips
- Start saving early — compound growth is most powerful over long periods.
- Take advantage of employer 401(k) matching — it's free money.
- Aim to save 15% of your income for retirement.
- Increase contributions when you get raises.
- Consider tax-advantaged accounts like IRAs and 401(k)s.
- Review and rebalance your portfolio annually.