NestEgg

Retirement Calculator

See how today's contributions compound into your retirement nest egg — and how much monthly income that nest egg can safely support.

Current age

Retirement age

Current savings

Monthly contribution

Expected annual return

Safe withdrawal rate

Nest egg trajectory

Shaded band spans a 5.0%–9.0% return range around your 7.0% expectation.

What you entered

Current savings: $25,000Monthly contribution: $800Expected return: 7%/yrYears to retirement: 33

1
Total months to compound
n = 33 years × 12= 396 months
2
Monthly return rate
r = 7% ÷ 12= 0.5833%
3
Compound monthly, adding your contribution each time
balance = balance × (1 + r) + $800.00, repeated 396×= $1,485,426.78
4
Total contributions over the period
$25,000.00 starting + $800.00 × 396 months= $341,800.00
5
Monthly income at your safe withdrawal rate
$1,485,426.78 × 4% ÷ 12= $4,951.42

Result

Nest egg at age 65: $1,485,427

At a 4% safe withdrawal rate, that supports about $4,951/month in retirement income. Actual returns vary year to year — the worst/best range above ($934,048 to $2,431,485) shows how sensitive the outcome is to the return you actually get.

Retirement nest egg and the income it supports

Each row starts from $50,000, contributes the monthly amount shown for 30 years at 7%, then applies a 4% annual withdrawal rate to the resulting balance.

Monthly contribution	Total contributed	Nest egg after 30 years	Monthly income at 4%
$500	$230,000	$1,015,810	$3,386
$1,000	$410,000	$1,625,796	$5,419
$1,500	$590,000	$2,235,781	$7,453
$2,000	$770,000	$2,845,767	$9,486
$3,000	$1,130,000	$4,065,738	$13,552

The last column is the one that reframes the exercise: a million-dollar nest egg supports about $3,386 a month at a 4% withdrawal rate, which is a comfortable but not extravagant income and considerably less than most people assume a million dollars buys. The 4% rule comes from historical US market studies and is a planning convention, not a guarantee - it assumes a diversified portfolio, a roughly 30-year retirement, and inflation adjustments along the way. Nothing here is inflation-adjusted, so at 3% inflation that $3,386 has the purchasing power of about $1,395 in today's money 30 years out. Social security or a state pension would sit on top.

The 4% rule

A common rule of thumb says you can withdraw 4% of your nest egg in year one of retirement, then adjust for inflation each year, with high confidence the money lasts 30+ years.

Catch-up contributions

From age 50, the IRS allows extra contributions to 401(k) and IRA accounts. Use them — they front-load compounding in your highest-earning years.

Frequently asked questions

How much do I need to retire?

A common target is 25× your annual expenses (based on the 4% withdrawal rule). If you spend $60,000/year, aim for $1.5 million. This gives you a high probability of your money lasting 30+ years. Adjust up for early retirement or down if you have pension income.

How much should I save for retirement each month?

Financial advisors recommend saving 15% of gross income for retirement (including employer match). Starting at 25, $500/month at 7% annual return grows to about $1.2 million by 65. Starting at 35, you'd need $1,000/month to reach the same amount.

What is the 4% rule?

The 4% rule says you can withdraw 4% of your retirement savings in year one, then adjust that amount for inflation each year, with about a 95% chance the money lasts 30 years. On a $1 million portfolio, that's $40,000/year ($3,333/month) in today's dollars.