Project your retirement savings based on current balance, monthly contributions, growth rate and years until retirement.
Starting from 20,000 and contributing 500/month for 25 years at an assumed 7% annual return projects to 519,544.21.
A retirement projection estimates how your savings will grow between now and retirement, based on current balance, ongoing contributions, expected investment returns, and time horizon — then optionally estimates how long those savings will last during withdrawal.
P is your current savings, PMT is your regular contribution, r is the expected periodic return, and n is the number of periods until retirement. Someone with $50,000 saved, contributing $500/month, at a 7% annual return for 25 years, would accumulate roughly $530,000.
| Years to retirement | Total contributed | Projected balance |
|---|---|---|
| 15 | $90,000 | $158,000 |
| 25 | $150,000 | $406,000 |
| 35 | $210,000 | $948,000 |
Projected savings growth — $500/month at 7% annual return
Example 1 — 4% withdrawal rule: A $600,000 nest egg using a 4% annual withdrawal rate provides about $24,000/year (roughly $2,000/month) in the first year of retirement, with the withdrawal amount typically adjusted for inflation in later years.
Example 2 — Late starter catching up: Starting retirement saving at 45 with $30,000 already saved, contributing $1,000/month at 7% for 20 years, projects to roughly $600,000 by 65 — showing that a higher contribution rate can still build meaningful savings over a shorter runway.
Example 3 — Employer match impact: Contributing $300/month with a 50% employer match (adding $150/month) instead of contributing alone effectively boosts the monthly contribution to $450 — over 30 years at 7%, that match alone adds well over $150,000 to the projected balance.
| Withdrawal rate | Annual income from $500,000 | Note |
|---|---|---|
| 3% | $15,000 | More conservative, longer sustainability |
| 4% | $20,000 | Commonly cited historical starting point |
| 5% | $25,000 | More aggressive, higher depletion risk |
How much should I have saved by a given age? Common rules of thumb suggest multiples of your salary at different ages, but the right target depends heavily on your desired retirement lifestyle and other income sources.
What return rate should I assume? Many planners use a conservative long-term estimate below historical stock market averages to account for uncertainty and fees.
Does this include Social Security or a pension? This projection typically covers personal savings; other guaranteed income sources should be added separately to get a full retirement income picture.
What is the 4% rule, and is it still considered reliable? The 4% rule is a historical guideline suggesting a 4% initial withdrawal rate (adjusted for inflation thereafter) has a strong track record of lasting 30 years; it remains a widely used starting point, though many planners now treat it as one input among several rather than a guarantee.
Should my expected return change as I get closer to retirement? Many strategies gradually shift toward more conservative, lower-volatility investments as retirement nears, which typically lowers expected average return in exchange for reduced risk of a market downturn late in the accumulation phase.
How does an employer match affect my effective contribution rate? An employer match adds "free" money on top of your own contribution, so it should be included in retirement projections as part of PMT — failing to include it will understate your real projected balance.
Does this calculator account for taxes on withdrawals? No — this is a pre-tax growth projection; taxable, tax-deferred, and tax-free retirement accounts each have different real-world tax treatment on withdrawal that isn't reflected here.
Starting with $10,000, contributing $400/month at an assumed 7% annual return for 25 years grows to roughly $327,000 — of which only about $130,000 came directly from contributions, with the remaining $197,000 generated by investment growth and compounding.
Compounding: The process by which investment returns generate their own additional returns over time.
Contribution: Money regularly added to a retirement or investment account.
Nest egg: A colloquial term for accumulated retirement savings.
Employer match: Additional retirement contributions an employer makes based on your own contributions, often up to a certain percentage.
What's a realistic rate of return to assume?
Long-term US stock market averages have historically been around 7–10% before inflation, but a more conservative 5–7% is often used for planning to account for down years and fees.