Retirement Income Calculator
Estimate how much monthly and annual income your retirement savings could provide based on your balance, withdrawals, investment growth and retirement length.
Overview
This retirement income calculator helps you estimate how much income your savings could provide in retirement. Enter your current retirement savings, expected annual return, planned annual withdrawal, contributions and retirement length to see your estimated monthly income, annual income and remaining balance.
How it works
The calculator estimates retirement income by converting your planned annual withdrawal into a monthly amount and projecting how your savings may change over time. It applies an average annual return to your starting balance, adds any ongoing contributions, and subtracts your planned annual withdrawals over the number of retirement years you choose. It also adjusts the future value of your withdrawal for inflation to show its estimated purchasing power later in retirement.
How to use this calculator
- 1Enter your current retirement savings balance.
- 2Add any annual contributions you expect to continue making.
- 3Enter your expected annual investment return.
- 4Choose how many years you want your retirement income to last.
- 5Enter your planned annual withdrawal and inflation rate.
- 6Review the estimated monthly income, withdrawal rate and projected ending balance.
Example Calculation
Current retirement savings
$500,000
Annual contribution
$0
Expected annual return
5%
Years in retirement
25
Desired annual withdrawal
$25,000
Inflation rate
3%
Estimated monthly income
$2,083
With $500,000 in savings, a 5% annual return, 25 years in retirement and $25,000 yearly withdrawals, the estimated retirement income is about $2,083 per month, with savings projected to remain positive over the period.
Frequently asked questions
What does this retirement income calculator estimate?
It estimates your monthly and annual retirement income, your starting withdrawal rate and the projected balance left after your chosen retirement period.
Does this calculator include Social Security, pensions or annuities?
No. This version focuses on income drawn from savings. You can manually include other income sources by reducing the withdrawal amount you need from savings.
What is a withdrawal rate?
A withdrawal rate is the percentage of your starting retirement savings you plan to take out each year. It helps you judge how aggressive or conservative your retirement income plan may be.
Why does inflation matter in retirement planning?
Inflation reduces purchasing power over time, so the same income may buy less in future years. The calculator shows an inflation-adjusted view of your withdrawal amount.
Can my money run out sooner than this estimate shows?
Yes. Actual returns, inflation, fees, taxes and changing withdrawal needs can all affect how long your savings last.
Should I use the same return rate every year?
For planning, many people use a long-term average estimate, but real investment returns vary from year to year and can significantly affect results.
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Assumptions and warnings
Assumptions
- Results are estimates based on constant annual return, withdrawal and inflation assumptions.
- Withdrawals are treated as level annual amounts over the full retirement period.
- Investment growth is assumed to be averaged and does not reflect year-to-year market volatility.
- Taxes, fees, account rules and other income sources are not included unless reflected in your inputs.
Warnings
- This calculator provides an estimate only and is not financial advice.
- Investment returns and inflation can vary, so actual retirement income may be higher or lower.
- Speak to a qualified professional before making major retirement or withdrawal decisions.