Year by year
$25,000.00 saved at 30, adding $500.00 a month, at 7% a year.
| Year | Added | Growth | Balance |
|---|---|---|---|
| 5 | $6,000.00 | $4,407.92 | $70,661.72 |
| 10 | $6,000.00 | $8,597.64 | $134,704.65 |
| 15 | $6,000.00 | $14,473.94 | $224,528.17 |
| 20 | $6,000.00 | $22,715.77 | $350,510.30 |
| 25 | $6,000.00 | $34,275.35 | $527,206.76 |
| 30 | $6,000.00 | $50,488.26 | $775,032.68 |
| 35 | $6,000.00 | $73,227.70 | $1,122,621.35 |
Long tables show every fifth year, and the Added and Growth columns are for that one year. Year 1 is your first year of saving from today.
Results are estimates for planning. They are not financial, tax or legal advice.
How the estimate is worked out
Your balance at retirement is what you have now, grown for the years left, plus every monthly saving grown for the time it has been invested:
- S is what you have saved so far and C is what you add at the end of each month.
- N is the number of months until you retire.
- i is the return for one month. A 7% yearly return is 1.07^(1/12) − 1 = 0.565415% a month, which compounds to exactly 7% over a year.
Two more lines put that balance in context:
The income line uses the 4% rule, a guide from William Bengen's 1994 study of US market history. It is explained, with its limits, on the how long will my money last page.
Worked examples
Age 30, $25,000 saved, $500 a month until 65
There are 35 years, or 420 months, to go. At 7% the $25,000 grows to 25,000 × 1.07^35 = $266,914.54. The 420 savings of $500 add up to $210,000 paid in and grow to $855,706.82. Together: $1,122,621.35.
At 2.5% inflation that buys what $473,040.16 buys today. A 4% first year is $44,904.85, or $3,742.07 a month, which is about $1,576.80 a month in today's money.
Starting at 40 with more saved
Age 40, retiring at 67, with $60,000 saved and $800 a month at 6%: 27 years is 324 months. The result is $917,557.50, from $259,200 of new savings. At 4% that supports $3,058.52 a month in the first year.
Working back from a goal
Choose "What I need to save each month". To reach $1,000,000 at 65 from age 30 with $25,000 already saved, at 7%: the $25,000 grows to $266,914.54 without help, leaving $733,085.46 to build. That takes $428.35 a month.
What waiting costs
Saving $500 a month at 7% until age 65, starting from nothing:
| Start at | You pay in | Balance at 65 |
|---|---|---|
| 25 | $240,000 | $1,235,771.00 |
| 35 | $180,000 | $584,726.30 |
| 45 | $120,000 | $253,768.19 |
The person who starts at 25 pays in $60,000 more than the one who starts at 35 and ends up with more than twice as much. The first ten years of savings have the longest time to grow.
Choosing the inputs
- Return. This is a guess about the future, so try a cautious figure as well as a hopeful one. Take yearly fund fees off before you enter it.
- Inflation. The Federal Reserve aims for inflation of 2% a year over the longer run, a goal it first set out in January 2012 and reaffirmed in January 2026 (Federal Reserve). Actual inflation has been above and below that. The 2.5% the calculator starts with is our own cautious assumption, not a forecast.
- Monthly saving. Include your employer's contributions. The calculator keeps the amount level; if you raise it as your pay rises, you will end up with more than shown.
- Retirement age. Each extra year of work adds a year of saving and growth, and takes a year off the time the money has to last.
Questions people ask
How much do I need to retire?
A common starting point is 25 times the yearly spending that has to come from savings, which is the 4% rule turned around. Needing $40,000 a year on top of Social Security points to about $1,000,000. The how long will my money last calculator explains where that rule comes from and lets you test other rates.
What return should I assume?
No return is guaranteed, so run the numbers more than once. For the example on this page, 5% gives $692,131.87, 7% gives $1,122,621.35 and 9% gives $1,857,171.52. A plan that only works at the top figure is a fragile plan.
Why show the result in today’s dollars?
Because prices rise while you save. At 2.5% inflation, $1,000,000 in 35 years buys what about $421,371 buys today. The “in today’s dollars” line shrinks the future balance by the inflation rate you enter so you can compare it with what things cost now.
Does this include Social Security or a pension?
No. It covers your own savings only. You can see an estimate of your benefit in your my Social Security account on ssa.gov, then count that income separately.
Should I include my employer’s match?
Yes. Add it to the monthly saving. If you put in $400 a month and your employer adds $200, enter $600.
Are taxes and contribution limits included?
No. Money in a traditional 401(k) or IRA is taxed when you take it out, so the spendable amount is lower than the balance. The IRS also caps how much you can pay into these accounts each year; the current limits are on the IRS contributions page.