Retirement Calculator

A common rule is to multiply your desired annual retirement income by 25 (the 4% rule). For example, if you need $60,000/year, you need $1,500,000 saved. This assumes a 4% annual withdrawal rate that historical data suggests is sustainable over a 30-year retirement. For early retirees (under 50), a 3–3.5% withdrawal rate and a higher savings multiple (28–33x) is more conservative.

The 4% rule, from the Trinity Study, states that withdrawing 4% of your portfolio in the first year of retirement — then adjusting for inflation annually — has historically sustained a portfolio for 30+ years. Morningstar's 2025 research recommends 3.9% for new retirees. Your FIRE number under this rule is annual expenses × 25.

The earlier the better. Starting at 25 versus 35 can more than double your retirement balance, because compound growth has an additional 10 years to work. Even small amounts invested early significantly outperform larger amounts started late. A 25-year-old investing $300/month at 7% will accumulate more than a 35-year-old investing $600/month.

A globally diversified equity portfolio has historically returned 7–9% annually before inflation, or 4–6% in real (inflation-adjusted) terms. Most retirement planners use 5–7% for long-term projections to be conservative. Using anything above 8% overstates likely outcomes for most investors.

If your projected portfolio balance supports a 4% withdrawal that is less than your desired annual income, the calculator shows the annual shortfall. To eliminate this gap, you need to increase monthly contributions, reduce target income, extend your working years, or increase your expected investment return.