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Free Retirement Calculator

Free retirement calculator for 2026: project your nest egg, test it with the 4% rule, and see the monthly savings that closes the gap. No sign-up required.

Last reviewed: January 2026 · Tax data verified against IRS Publication 15-T & state revenue departments

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How This Calculator Works

This tool answers the two questions every saver eventually loses sleep over: how much do I actually need to retire, and will my current plan get me there? You enter your age, what you have saved, what you add each month, and the annual income you want in retirement. The engine projects your nest egg at your retirement age two ways — raw future dollars, and the same balance restated in today's purchasing power — then stress-tests it against your goal.

The inflation step is the one most people skip, and it changes everything. At 3% a year, prices multiply by about 2.575 over 32 years (1.03 to the 32nd power). A $947,515 balance waiting for you at 67 is really only worth about $367,955 in today's dollars. Every result on this page — sustainable income, surplus, shortfall — is shown in today's money so you can compare it directly against your current budget.

The pass/fail test is the 4% rule: withdraw 4% of a diversified portfolio in your first year of retirement, then adjust that dollar amount for inflation each year. Based on historical US returns, that pace survived every 30-year stretch since the 1920s, including the Depression and stagflation eras. Flip it around and you get the 25x rule: your target nest egg is 25 times the annual income you want. Want $60,000 a year? You need $1,500,000.

If the verdict says you're behind, the calculator shows the fastest fix: the exact monthly contribution that closes the gap to your 25x target. The other levers are baked into the 2026 rules — IRA contributions run $7,500 with a $1,150 catch-up at 50+, 401(k) contributions run $24,500 with an $8,000 catch-up at 50+ and an $11,250 super catch-up at ages 60-63, and delaying Social Security past your full retirement age raises that check about 8% a year up to age 70.

This page deliberately complements rather than duplicates our 401(k) calculator — that tool projects a workplace plan's balance with employer matching; this one measures total readiness across every account you own and tells you whether the number is big enough. The raw snowball math behind both lives in our compound interest calculator.

One honest caveat: the projection assumes a constant average return every year. Real markets deliver +25% years and −20% years in random order, and unlucky sequences early in retirement hurt more than the average suggests. Treat the output as a planning estimate — a compass, not a guarantee — and re-run it every year as your balances and the rules change.

How It's Calculated

Formula

FV = P × (1+i)^n + C × [((1+i)^n − 1) / i] where i = annual return ÷ 12, n = years × 12

Step-by-Step

  1. 1Years to retirement = retirement age − current age; months n = years × 12
  2. 2Monthly rate i = annual return ÷ 100 ÷ 12 (7% becomes 0.583% per month)
  3. 3Project the nominal nest egg with the future-value formula: principal compounded plus the monthly-contribution annuity
  4. 4Restate it in today's dollars: real balance = nominal ÷ (1 + inflation)^years
  5. 54% rule income = real balance × 4%; the 25x target = desired annual income × 25
  6. 6Required monthly savings = (25x target − FV of principal alone) × i ÷ ((1+i)^n − 1)

Example

Age 35 retiring at 67 (32 years), $25,000 saved, $500/month, 7% return, 3% inflation, $60,000 income goal: nominal balance at 67 = $947,515; in today's dollars = $367,955; 4% of that = $14,718/year — a $45,282 annual shortfall against the goal. Hitting the full 25x target ($1,500,000) would take $886.78 a month.

For detailed data sources and full methodology, see our Methodology & Data Sources page.

Key Rates & Data for 2026

2026 IRA Contribution Limit

$7,500 (+$1,150 catch-up 50+)

2026 401(k) Employee Limit

$24,500 (+$8,000 50+; +$11,250 ages 60-63)

Safe Withdrawal Rate (4% rule)

4% in year one, then adjust for inflation

Retirement Target (25x rule)

25 × desired annual income

Social Security Wage Cap (2026)

$184,500

Long-Run US Inflation

about 2-3% a year

Frequently Asked Questions

How much money do I need to retire?

Start with the income you want, then multiply by 25 — that's the 25x rule, the flip side of the 4% rule. If you want $60,000 a year from your portfolio, you need about $1,500,000; a $100,000 lifestyle needs $2.5 million. Social Security shrinks the target: if it pays you $24,000 a year, your $60,000 goal becomes $36,000 a year from savings, or a $900,000 nest egg. Run the numbers with your own age, balance, and monthly savings above — the calculator converts everything to today's dollars so the target stays comparable to your current budget.

Will I have enough to retire? How does this calculator decide?

It projects your balance at your retirement age from your current savings plus monthly contributions, discounts it to today's dollars at your inflation assumption, and takes 4% of the result as the annual income that portfolio could sustain. Then it compares that income against your goal and shows the surplus or shortfall, plus the coverage percentage. With the default inputs ($25,000 saved, $500 a month, 7% return, 3% inflation), the plan supports $14,718 a year against a $60,000 goal — about 24.5% coverage — and closing the full gap means contributing $886.78 a month instead of $500.

What is the 4% rule, and does it still work?

The 4% rule comes from financial planner William Bengen's 1994 research and the famous Trinity study: retire with a diversified stock/bond portfolio, withdraw 4% of it the first year, raise that dollar amount with inflation each year, and historically the money lasted 30 years in every stretch since the 1920s. It is a planning guideline, not a law — the next 30 years could be worse than the worst historical case, sequence risk hits retirees who start withdrawals in a crash, and many advisors now suggest 3.5% for early retirement or 30+ year horizons. Use it to size the goal, then revisit it as you approach the finish line.

How does inflation change my retirement number?

Dramatically. Inflation compounds the same way returns do, just against you. At 3% a year, prices rise about 2.575× over 32 years, so $60,000 of spending power at 67 requires about $154,500 of income in future dollars. This calculator does the conversion both ways: your projected balance is shown in nominal dollars and in today's dollars, and the 4%-rule income is computed on the inflation-adjusted balance so it means the same thing as your paycheck does now. That's why the default plan shows a $947,515 nominal balance but only $367,955 of today's purchasing power.

I am behind on retirement savings — what is the fastest way to catch up?

Three levers, in order of punch. First, contribution catch-ups: 2026 lets you put $7,500 in an IRA plus $1,150 more at 50+, and $24,500 in a 401(k) plus an $8,000 catch-up at 50+ and an $11,250 super catch-up at ages 60-63. Second, small bumps compound: adding just $100 a month to the default 32-year plan adds about $142,841 to the final balance. Third, time: starting the same plan at 45 instead of 35 cuts the age-67 balance from $947,515 to $428,417 — and delaying Social Security to 70 adds roughly 8% a year to that check.

Does Social Security change how much I need to save?

Yes — and it is the most commonly forgotten line in retirement math. Social Security replaces about 40% of the average worker's pre-retirement earnings, and every dollar it pays is a dollar your portfolio does not have to generate. Say you expect $2,000 a month ($24,000 a year): subtract it from your $60,000 goal, and your savings only need to produce $36,000 a year — a $900,000 target at 25x instead of $1,500,000. Keep in mind benefits depend on your top 35 earning years (the 2026 wage cap is $184,500) and claiming age: waiting from 62 to 70 can raise your check by more than 75%.

How will my retirement withdrawals actually be taxed?

It depends on the account. Traditional 401(k) and IRA withdrawals are taxed as ordinary income at the 2026 brackets (10% to 37%), though the standard deduction — $16,100 single, $32,200 married filing jointly — shelters your first withdrawals, which is why many retirees pay a lower effective rate than their working years. Qualified Roth withdrawals, including all growth, are federal-tax-free. Up to 85% of Social Security can be taxable at higher incomes, and 12 states still tax some retirement income. Estimate the after-tax income you need first, then run this calculator with that number as your goal.

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<a href="https://thetaxcalc.com/retirement-calculator" title="Retirement Calculator 2026 — How Much Do You Need?">Retirement Calculator 2026 — How Much Do You Need?</a>

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