Use this retirement calculator to estimate the savings you need to retire comfortably based on your current financial situation.
Retirement Savings Calculator
This calculator helps you estimate how much you will have saved up by the time you retire. Follow the steps below to use the calculator:
- Enter your current age in the “Current Age” field.
- Enter the age at which you plan to retire in the “Desired Retirement Age” field.
- Input the amount of money you currently have saved in the “Current Savings” field.
- Enter your estimated monthly contribution to your retirement savings in the “Monthly Contribution” field.
- Provide an estimated annual return rate (percentage) you expect from your investments in the “Annual Return (%)” field.
- Click the “Calculate” button to see your estimated retirement savings.
How It Works
The calculator uses a compound interest formula to estimate the future value of your retirement savings. It assumes that you will make consistent monthly contributions and that your investments will grow at a specific annual rate, compounded monthly. The formula used is:
Future Value = (Current Savings + Monthly Contribution) * (1 + Monthly Return Rate)^Number of Months
Limitations
This calculator does not take into account taxes, inflation, or changes in contribution rate and investment return over time. It provides an estimate based on the input values and assumes a fixed rate of return, which is not guaranteed. It’s recommended to review your retirement plan regularly and consult with a financial advisor.