About

Planning for retirement is a game of compound interest played over decades. Small adjustments today - like increasing your contribution by 1% or maximizing your employer match - can result in hundreds of thousands of dollars in difference effectively. This calculator acts as a time machine, showing you the future value of your current savings strategy.

The tool accounts for the distinct phases of wealth accumulation: the growth phase (pre-retirement) and the preservation phase. It allows you to model salary increases, "Free Money" from employer matching, and varying annual returns, providing a realistic estimate of whether your nest egg will support your desired lifestyle.

Formulas

The core projection uses the Future Value of a Series formula, adjusted for annual growth in contributions:

FV = P(1+r)ⁿ + PMT × (1+r)ⁿ − 1r

Where PMT (Annual Contribution) includes:

PMT = (Salary × User%) + (Salary × min(Match%, User%))

Reference Data

Age Range	Rec. Savings (× Salary)	Max 401(k) Contribution (2024)
20s	0.5x to 1x	&dollar;23,000
30s	1x to 2x	&dollar;23,000
40s	3x to 4x	&dollar;23,000
50s	6x to 7x	&dollar;30,500 (Catch-up)
60s	8x to 10x	&dollar;30,500 (Catch-up)

Frequently Asked Questions

Historically, the S&P 500 has returned about 10% annually before inflation. For conservative planning, financial advisors often suggest using 6-7% to account for inflation and market volatility.

Employers often match your contributions up to a certain percentage of your salary (e.g., 50% of the first 6%). This is essentially a guaranteed 50% or 100% return on your investment instantly. Always contribute enough to get the full match.

The calculator does not automatically cap at IRS limits because these limits change annually. If your projected contribution exceeds roughly $23,000 (adjusted for inflation), consider that excess as going into a taxable brokerage account, which works similarly for growth but has different tax implications.