How much do you need to stop working? Project your savings until retirement and compare with the nest egg that funds your desired income.
| Year | Invested | Interest | Balance | Required nest egg |
|---|---|---|---|---|
| 0 | $10,000 | $0 | $10,000 | $900,000 |
| 1 | $16,000 | $890 | $16,890 | $927,000 |
| 2 | $22,000 | $2,263 | $24,263 | $954,810 |
| 3 | $28,000 | $4,151 | $32,151 | $983,454 |
| 4 | $34,000 | $6,592 | $40,592 | $1,012,958 |
| 5 | $40,000 | $9,623 | $49,623 | $1,043,347 |
| 6 | $46,000 | $13,287 | $59,287 | $1,074,647 |
| 7 | $52,000 | $17,627 | $69,627 | $1,106,886 |
| 8 | $58,000 | $22,692 | $80,692 | $1,140,093 |
| 9 | $64,000 | $28,530 | $92,530 | $1,174,296 |
| 10 | $70,000 | $35,197 | $105,197 | $1,209,525 |
| 11 | $76,000 | $42,751 | $118,751 | $1,245,810 |
| 12 | $82,000 | $51,254 | $133,254 | $1,283,185 |
| 13 | $88,000 | $60,772 | $148,772 | $1,321,680 |
| 14 | $94,000 | $71,376 | $165,376 | $1,361,331 |
| 15 | $100,000 | $83,143 | $183,143 | $1,402,171 |
| 16 | $106,000 | $96,153 | $202,153 | $1,444,236 |
| 17 | $112,000 | $110,494 | $222,494 | $1,487,563 |
| 18 | $118,000 | $126,258 | $244,258 | $1,532,190 |
| 19 | $124,000 | $143,547 | $267,547 | $1,578,155 |
| 20 | $130,000 | $162,465 | $292,465 | $1,625,500 |
| 21 | $136,000 | $183,128 | $319,128 | $1,674,265 |
| 22 | $142,000 | $205,657 | $347,657 | $1,724,493 |
| 23 | $148,000 | $230,183 | $378,183 | $1,776,228 |
| 24 | $154,000 | $256,846 | $410,846 | $1,829,515 |
| 25 | $160,000 | $285,795 | $445,795 | $1,884,400 |
| 26 | $166,000 | $317,191 | $483,191 | $1,940,932 |
| 27 | $172,000 | $351,205 | $523,205 | $1,999,160 |
| 28 | $178,000 | $388,019 | $566,019 | $2,059,135 |
| 29 | $184,000 | $427,831 | $611,831 | $2,120,909 |
| 30 | $190,000 | $470,849 | $660,849 | $2,184,536 |
| 31 | $196,000 | $517,298 | $713,298 | $2,250,072 |
| 32 | $202,000 | $567,419 | $769,419 | $2,317,574 |
| 33 | $208,000 | $621,469 | $829,469 | $2,387,102 |
| 34 | $214,000 | $679,722 | $893,722 | $2,458,715 |
| 35 | $220,000 | $742,473 | $962,473 | $2,532,476 |
The calculator projects your current savings plus monthly contributions with a constant annual return until your retirement age. The required nest egg is the capital needed to pay your desired income using a safe withdrawal rate: annual spending divided by the withdrawal rate.
Required nest egg = annual spending ÷ withdrawal rate
The classic 4% rule comes from studies of historical market returns: withdrawing 4% of the portfolio in the first year of retirement, then adjusting for inflation, has historically kept portfolios alive for 30+ years. Your desired income is corrected for inflation between now and retirement, because prices will be higher by then.
All income values shown are in today's money so they stay comparable with your current cost of living.
Take someone aged 30 with $10,000 saved, contributing $500 a month at 7% per year, aiming for $3,000 a month (in today's money) at 65. The projection reaches about $962,000 — which sounds like a lot, but with 3% annual inflation that income requires roughly $2,530,000. The plan sustains only about $1,140 a month.
Two levers close the gap: contributing $1,200 a month lifts the projection to about $2,160,000 (a sustainable $2,559 a month), and starting the same plan at 25 instead of 30 adds roughly $420,000 to the nest egg. Time and contribution size move the needle more than hunting for a slightly better return.
It is the percentage of your nest egg you can withdraw per year with a low risk of running out of money. The 4% rule is the most famous benchmark, based on historical US market data. More conservative plans use 3% to 3.5%.
Because your desired income is defined in today's money, but you will retire in the future. At 4% annual inflation, prices double roughly every 18 years, so the income you need at retirement — and the capital to fund it — is much larger in nominal terms.
A diversified stock portfolio has historically returned around 7–10% per year nominally, while conservative bonds return less. Use a realistic, slightly conservative number rather than the best-case scenario, and test several rates to see how sensitive your plan is.
Estimates for educational purposes only, based on constant rates. Real investments and loans vary — consult a qualified professional before making financial decisions.