FinanceReviewed Methodology
Retirement Calculator
This retirement calculator projects future savings using compound growth and recurring monthly contributions.
Quick answer
Future value depends on time, contribution amount, and growth rate.
What this tells you
- •Future value depends on time, contribution amount, and growth rate.
- •Small changes in contribution or return can have large long-term effects.
- •Use this for planning scenarios, not guaranteed outcomes.
How to Use
- 1Enter current age and target retirement age.
- 2Enter current savings and monthly contribution.
- 3Enter expected annual return.
- 4Calculate to estimate future retirement balance.
How It Works
Formula
Future Value = Current Savings x (1+r)^n + Contribution x [((1+r)^n - 1)/r]The calculation compounds current savings and a stream of monthly contributions over time.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
Long-term projection
Current Age30
Retirement Age60
Current Savings$20,000
Monthly Contribution$500
Annual Return7%
ResultProjected value: $654,479.16
Common mistakes
- Using unrealistic return assumptions
- Ignoring inflation when interpreting future values
- Not updating assumptions over time
Limitations
Projections depend on assumptions and do not guarantee investment outcomes.
Frequently Asked Questions
No. Real investment returns vary over time.
This version shows nominal projected value only.
Yes. Recalculate when income, contributions, or goals change.