We created this calculator to help you create a plan for your retirement. You can use it to calculate three numbers: the starting balance you’ll need in your retirement account, the amount you’ll need to contribute annually to retire, or what your annual income will be after retirement. You can then see the results in both chart and table form, and you can even adjust the results in real time by changing individual numbers.
How to Use Our Retirement Calculator
To calculate the starting balance you’ll need in your retirement account, follow these steps
- Choose “Calculate starting balance.”
- Type in your interest rate or select it using the sliding scale.
- Add the annual contribution you intend to make.
- Enter the amount of money you would like to receive annually when you retire.
- Select your present age and retirement age using the sliding scales, or type them in.
- Add the age at which you predict your retirement will end.
- Type in the expected inflation rate (2-3% is usually the best estimate).
To calculate the amount you’ll need to contribute annually to retire on time, complete the steps listed below
- Select “Calculate the annual contribution you must make before retirement.”
- Enter your beginning balance (you can type it in or use the slider under the “Beginning balance” field).
- Select the interest rate offered on your retirement account on the sliding scale, or type it into the appropriate field.
- Add the amount of income you would like to receive annually during your retirement.
- Enter your present age and goal retirement age into the appropriate fields.
- Type in the age at which you predict your retirement will end.
- Adjust the inflation rate if necessary (it is pre-set to 3%).
To calculate how much you’ll receive annually during retirement, follow these instructions
- Click “Calculate the annual income you will receive after retirement.”
- Type the starting balance of your retirement account into the appropriate field.
- Select the interest rate currently offered on your retirement account using the slider below the “Interest Rate” field.
- Enter the annual contribution you intend to make.
- Type in your present age and retirement age.
- Add the age you expect to be when your retirement ends.
- Adjust the pre-set inflation rate of 3% as necessary.
Your results will automatically be updated with each change you make. You can view these changes in real time at the bottom of the page.
(Hint: Check this box to show the annual income amount in today's dollars.)
(Hint: Check this box to account for the effects of inflation over time.)
|Annual Contribution:||Number of Years Contributing:|
|Number of Years Withdrawing:|
Retirement Saving Schedule
Retirement Withdrawl Schedule
Remaining Loan Balance
By using this calculator you agree to terms and conditions. These calculators are designed to be informational and educational tools only, and when used alone, do not constitute investment or financial advice. We strongly recommend that you seek the advice of a financial services professional before making any type of investment or deciding on your financial matters. This model is provided as a rough approximation of future financial performance. The results presented by this calculator are hypothetical and may not reflect the actual growth of your own investments. We can't take into account potential lender fees, payoff schedule can be longer than in the estimation. Financialfreedom and its affiliates are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by these tools. Financialfreedom is not responsible for any human or mechanical errors or omissions.
Reading the Results
The results from our retirement calculator are displayed in a variety of ways. A simple bar graph chart tracks the basics, displaying how much your retirement account will grow year over year.
Below the bar graph you’ll see a table containing the following information:
- Beginning Balance. The dollar amount you’re starting your retirement account with.
- Interest Rate. This is the amount of interest you will earn on your retirement account each year.
- Annual Contribution. The dollar amount you intend to contribute to your retirement account on a yearly basis.
- Number of Years Contributing. The number of years between when you start your retirement account and when you’ll actually retire.
- Number of Years Withdrawing. The number of years you will spend withdrawing and utilizing your retirement income.
- Inflation Rate. The amount of inflation you can expect throughout the course of your savings and retirement, expressed as a percentage.
- Annual Income. The amount of money you will receive each year during your retirement.
You’ll also see a retirement savings schedule that shows exactly how much your balance will increase during each savings period, based on your annual deposit and existing interest rate.
At the very bottom of the page you’ll find a withdrawal schedule that displays the payments you will receive during retirement, along with how much your balance will decrease each year as withdrawals are made.
Gain More Control of Your Finances
This calculator is not meant to replace a financial advisor, but it can help you get a feel for what your retirement savings will look like. To gain even more control of your finances, check out our compound interest calculator and credit card payoff calculator.