Retirement Calculator – Nest Egg Target

Retirement math has two halves: the pot you need and the pot your savings will produce. The target comes from the 4% rule — annual spending divided by a safe 4% withdrawal rate equals 25 times expenses. Example: retiring on 40,000 a year needs roughly 1,000,000. The savings side uses compound growth of monthly contributions: 500 per month at 7% annual (r = 0.00583) for 30 years (n = 360) accumulates 500 × ((1.00583)^360 − 1) ÷ 0.00583 ≈ 610,000, of which only 180,000 is deposits — the rest is growth. That leaves a 390,000 gap on our target, closable by raising the monthly contribution to about 820, adding 15 more years, or counting other income like pensions. Every decade you delay starting roughly halves the required monthly payment for the same outcome.

1. 1

   Step 1

   Enter the annual income you want in retirement — typically 70–80% of salary.

2. 2

   Step 2

   The tool multiplies it by 25 to set the nest-egg target (4% rule).

3. 3

   Step 3

   Enter current savings, monthly contribution, expected return and years to retirement.

4. 4

   Step 4

   Read the projected pot, the shortfall, and the adjusted contribution needed.

• Ignoring inflation before retiring

• Assuming 10%+ returns

• Forgetting healthcare