Retirement projection calculator
Enter your age, savings, monthly contributions and an assumed return to project your balance at retirement. The calculator also estimates a yearly withdrawal using a withdrawal rate you choose, a common planning rule of thumb.
Educational estimate based on the numbers you enter and common rules of thumb. Not a loan offer, rate quote, approval or financial advice. A licensed loan officer can run your real numbers.
How this calculator works
This calculator projects your savings from your current age to your retirement age, one month at a time. Each month, the balance earns one twelfth of the yearly return you enter, and your monthly contribution is added. The projected savings at retirement is the result. It then multiplies that balance by the withdrawal rate you choose to estimate the first year of income, and divides by 12 for a monthly figure. The chart shows savings at each birthday.
Assumptions: the return is the same every year, and contributions stay the same until you retire. Taxes, fees and inflation are not included, so the income figure is before taxes and in future dollars. Social Security, pensions and other income are not added. The withdrawal estimate covers only the first year; it does not test whether the money lasts through retirement.
How this affects buying a home: retirement accounts can count as assets when you apply for a mortgage. Lenders often count only part of the value and may consider withdrawal rules. Some programs, sometimes called asset depletion loans, can use large savings to help qualify. Older homeowners may also be able to use home equity through a reverse mortgage. Talk with a loan officer and a tax professional before taking money out of a retirement account to buy a home.
Example: enter age 40, retirement at 67, $50,000 saved, $500 a month, and the return and withdrawal rate you want to test.
Related: Compound growth calculator · Reverse mortgage (HECM) explorer · Asset depletion loans
Common questions
What is the 4 percent rule?
A rule of thumb that withdrawing about 4 percent of savings in the first year of retirement, then adjusting for inflation, has historically lasted about 30 years. It is a starting point, not a guarantee.
How does home equity fit in?
A paid-off home lowers your living costs in retirement, and homeowners 62 and older may be able to tap equity with a reverse mortgage. See the HECM explorer.
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