Retirement Calculator
Plan your retirement by calculating how much you need to save and whether you're on track to meet your goals.
Input Parameters
Results
Retirement Planning Basics
The 4% rule suggests withdrawing 4% of your retirement corpus annually. Start saving early — the compounding effect is dramatically more powerful the longer your investment horizon.
What is the Retirement Calculator?
The Retirement Calculator is the ultimate financial planning tool. It determines if your current savings rate and investment portfolio will be enough to sustain your desired lifestyle after you stop working, or if you will run out of money.
How It Works (Algorithm)
The calculator performs two complex tasks. First, it compounds your savings until your retirement date. Second, it switches to a "drawdown" phase, subtracting your annual living expenses while factoring in inflation and the continuing growth of the remaining balance.
$$ \text{Balance}_{n} = (\text{Balance}_{n-1} \times (1+r)) - \text{Living Expenses} $$
The algorithmic loop for calculating portfolio drawdown.
How to Use It
Input your current age, retirement age, and current savings. Then, input how much money you will need to spend annually in retirement. The tool will tell you if your money will last until life expectancy or if you face a shortfall.