Retirement Calculator

Most people guess at retirement savings. They pick a number that feels right — $500,000, $1 million, $2 million — without knowing if it's actually enough. The truth? Your retirement number depends on your spending, not your income.

Our free retirement calculator shows you exactly how much you need and what to save monthly. Here's how to use it.

The 4% Rule: A Starting Point

The 4% rule says you can safely withdraw 4% of your retirement portfolio each year without running out of money. This means:

• If you need $40,000/year → Save $1,000,000
• If you need $60,000/year → Save $1,500,000
• If you need $80,000/year → Save $2,000,000

This assumes a 30-year retirement with a 50/50 stock/bond portfolio. Some experts now suggest 3.5% for extra safety, especially if you retire early.

How to Calculate YOUR Number

Step 1: Estimate your annual retirement spending. Start with your current expenses, then adjust:

• Remove: Mortgage (if paid off), retirement savings, work costs
• Add: Healthcare (budget $6,000–$10,000/year per person), travel, hobbies

Step 2: Multiply by 25 (using 4% rule). That's your target.

Step 3: Use our calculator to see if you're on track. Enter:

• Current age and desired retirement age
• Current retirement savings
• Monthly contribution
• Expected return (6% is conservative for long-term planning)

Example: Are You on Track?

Scenario: Age 30, wants to retire at 60, currently has $50,000 saved, wants $60,000/year in retirement.

Target: $60,000 × 25 = $1,500,000

Monthly need: $850/month at 7% return

Wait until 40 to start? Monthly need jumps to $2,100/month. The cost of waiting is real.

Catch-Up Contributions

If you're behind, the IRS allows extra contributions:

• 401(k): $23,000 base + $7,500 catch-up (age 50+)
• IRA: $7,000 base + $1,000 catch-up (age 50+)

A 55-year-old maxing both could contribute $38,500/year. That's $385,000 over 10 years — not counting growth.

Where to Save: Account Priority

1. 401(k) match — Free money. Always take the full match first.
2. HSA — Triple tax advantaged. Best account most people ignore.
3. Roth IRA — Tax-free growth. Perfect for early-career contributors.
4. Max 401(k) — Tax-deferred growth + reduces taxable income.
5. Taxable brokerage — Flexible access before age 59½.

The Bottom Line

Retirement isn't about hitting an arbitrary number. It's about covering your expenses sustainably. Use our retirement calculator to find your personal target, then automate your savings so you don't have to think about it.

Related: Investment Calculator: How Much Will You Have? | Compound Interest Calculator

The most common question in personal finance: Should I put money in my 401k or an IRA? The answer depends on your employer match, fees, and investment options. Use our free retirement calculator to see how much each choice grows over time.

Quick Comparison

Feature	401k	IRA
2026 Contribution Limit	$23,500	$7,000
Employer Match	✅ Yes	❌ No
Investment Choices	Limited (employer picks)	Unlimited
Fees	Often higher	Usually lower
Early Withdrawal	10% penalty + tax	10% penalty + tax

The Golden Rule: Employer Match First

Always contribute enough to get your full employer match before opening an IRA. It's free money with an instant 50-100% return.

• Common match: 50% of contributions up to 6% of salary
• Example: On a $60,000 salary, contribute $3,600 → employer adds $1,800
• That's a 50% return before any market growth

When to Choose an IRA

After getting the full match, consider an IRA if:

• Your 401k has high fees (over 1% expense ratio)
• Your 401k investment options are terrible
• You want more control over investments
• You want access to low-cost index funds

IRA Types: Traditional vs Roth

Feature	Traditional IRA	Roth IRA
Tax Break	Now (deduction)	Later (tax-free growth)
Income Limit (2026)	None	$150k single / $236k married
Withdrawals in Retirement	Taxed as income	Completely tax-free

The Optimal Strategy

1. Contribute to 401k up to employer match
2. Max out Roth IRA ($7,000/year)
3. Go back to 401k and max it out ($23,500/year)
4. After that: taxable brokerage account

The Bottom Line

Match first, then IRA, then max 401k. Use our retirement calculator to see the difference this strategy makes over 30 years.

Related: Compound Interest Calculator

Financial Independence, Retire Early (FIRE) isn't about extreme frugality. It's about math. Specifically: how much do you need to never work again? Use our retirement calculator to find your number.

The 4% Rule (The Foundation)

You can safely withdraw 4% of your investment portfolio each year without running out of money. This means:

Your FIRE Number = Annual Expenses × 25

If you spend $40,000/year, you need $1,000,000 invested.

Calculate Your Savings Rate

Your savings rate determines how fast you reach FIRE:

Savings Rate	Years to FIRE
10%	51 years
25%	32 years
50%	17 years
70%	8.5 years

Assumes 5% real returns after inflation.

Types of FIRE

• Lean FIRE: $25k-40k/year spending, aggressive saving
• Coast FIRE: Save enough early, then let compound growth do the work
• Barista FIRE: Part-time work covers expenses, investments keep growing
• Fat FIRE: $100k+/year spending, requires $2.5M+

The Hidden Cost: Healthcare

Before Medicare at 65, you're on your own:

• ACA marketplace: $400-800/month
• HDHP + HSA: $300-500/month
• Factor this into your annual expenses

Shortcut: Coast FIRE

Instead of saving your full FIRE number, save enough that compound growth gets you there by traditional retirement age:

• Age 30: $250k invested → grows to $1.5M by age 65 at 5%
• Then you only need to cover living expenses, not save more
• Much less stressful than full early retirement

The Bottom Line

FIRE is possible at almost any income — but it requires saving aggressively and investing consistently. Calculate your number. Pick a strategy. Start today. Even if you don't retire at 40, having the option at 55 is life-changing.

Related: Compound Interest Calculator