How to Use the Retirement Asset by Age Calculator
This calculator uses compound interest to project your retirement assets based on monthly contributions and expected returns. Try different starting ages to see exactly how much each decade of delay costs.
The Power of Compound Interest
Saving $500/month at 7% for 30 years yields about $567K from contributions alone. Add 10 more years and it grows to about $1.2M. That's the compounding effect — time is the most powerful variable.
Choosing a Realistic Return Rate
3–4% for bonds/savings, 5–7% for balanced portfolios, 7–10% for equity-heavy. For conservative retirement planning, use 5% or lower to avoid overestimating your future assets.
Frequently Asked Questions
FV = PMT × [(1+r/12)^n - 1] / (r/12) for monthly contributions. Existing savings grow as PV × (1+r/12)^n. Both are added to get total retirement assets.
At $500/month with 7% annual return, starting at 30 (retiring at 65) yields about $1.2M. Starting at 40 yields about $540K. Ten extra years nearly doubles the result.
3–4% for conservative portfolios, 5–7% for balanced, 7–10% for equity-heavy. For conservative retirement planning, use 5% or below to avoid overestimating.