How Much Do You Need to Retire Comfortably?
Your retirement target is not simply monthly spending multiplied by the number of months. Inflation means the same lifestyle costs more each year, while investment growth means a smaller lump sum can support a longer retirement. This calculator accounts for both and gives you the present-value amount you need on the day you retire.
The popular 4% rule implies a 25× multiple of annual spending (equivalent to a real return of about 2% over 30 years). If you enter $4,000/month, 30 years, 3% inflation, and 5% return, the result reflects your real return of roughly 2% and gives a number comparable to the 4% rule. Subtract Social Security or pension income from your monthly figure to find your true personal savings target.
If inflation exceeds your return, your real return is negative and you'll need more than the nominal sum. The "Total Nominal Spending" line shows what your retirement will cost in future dollars — a useful reality check on how inflation compounds over decades.
Frequently Asked Questions
The present value is what you need in your account today — if invested at your assumed return, it will exactly fund inflation-adjusted withdrawals. The nominal total is the raw sum of all future payments, unadjusted for the time value of money.
A conservative estimate for a diversified portfolio is 5–7% nominal (or about 2–4% real after 3% inflation). Use a lower number if your portfolio will shift to bonds in retirement.