Find out exactly how much you need to retire — and when you can get there.
This retirement calculator gives you a complete picture of your financial future in seconds. Here is what each input means and how to use the results effectively.
The 4% rule is the cornerstone of modern retirement planning. It was developed by financial advisor William Bengen in 1994 after analyzing historical stock and bond market returns from 1926 onward. His research showed that a retiree who withdraws 4% of their portfolio in the first year of retirement — and adjusts that amount for inflation each subsequent year — would not run out of money over any 30-year period in recorded US market history.
The math is simple: to find your "retirement number," multiply your desired annual spending by 25.
Some financial planners argue that the 4% rule is too aggressive for today's lower interest rate environment, recommending a 3–3.5% withdrawal rate for added safety. Others point out that for shorter 20-year retirements, a 5% withdrawal rate is historically safe. The appropriate rate depends on your retirement horizon, Social Security benefits, and risk tolerance.
For FIRE (Financial Independence, Retire Early) practitioners planning for 40–50 year retirements, a withdrawal rate of 3–3.5% provides much greater security against sequence-of-returns risk — the danger that a market crash early in retirement could permanently deplete a portfolio.
No matter where you are in your career, these evidence-based strategies can dramatically improve your retirement outlook:
Using the 4% rule, you need 25 times your desired annual retirement income. For $3,000/month in retirement ($36,000/year), you need $900,000 in savings. This assumes a 30-year retirement with a diversified portfolio. If you plan to retire early, consider a more conservative 25x–33x multiplier (3–4% withdrawal rate).
The 4% rule states you can withdraw 4% of your portfolio in year one and adjust for inflation thereafter without running out of money over a 30-year retirement. Developed by William Bengen in 1994 using historical market data, it remains the most widely cited rule of thumb in retirement planning.
FIRE (Financial Independence, Retire Early) is a movement focused on aggressive saving and investing — typically 50–70% of income — to reach financial independence decades before traditional retirement age. FIRE followers often use a 3% withdrawal rate for a 40–50 year retirement horizon. The calculator above works equally well for traditional and FIRE retirement planning.
Most financial planners recommend assuming 6–7% average annual real returns (after inflation) for a diversified portfolio. The US stock market has historically returned about 10% annually before inflation and 7% after inflation. A portfolio with 20–40% bonds typically returns 5–6% in real terms. Use a conservative estimate to avoid overstating your projected wealth.