Retirement Nest Egg Calculator
Work out the number: how large a nest egg you need to retire, and how much to save each month to get there. Enter your income, the share of it you want to replace, your expected Social Security, and a safe withdrawal rate, and the calculator sizes the portfolio your retirement requires.
It combines two well-known frameworks — an income-replacement target and a safe withdrawal rate (the 4% rule and its more recent revisions) — into a single, transparent estimate you can adjust as your assumptions change.
Nest egg you need
$900,000
Save $654/mo for 25 years to reach it
- Annual retirement income
- $60,000
- Covered by Social Security
- $24,000
- Must come from savings
- $36,000/yr
- Monthly savings needed
- $654
Calculation Formulas
The income you want to replace in retirement — commonly 70–80% of pre-retirement income.
Example:
$80,000 income × 75% = $60,000 per year.
Subtract expected Social Security, then divide what’s left by a safe withdrawal rate. At 4%, this is the same as 25× the amount your savings must cover.
Example:
($60,000 − $30,000) ÷ 4% = $750,000.
Uses the future-value-of-an-annuity formula over your years to retirement at your expected return.
Key Figures
| Figure | Value | Description |
|---|---|---|
| Safe withdrawal rate | ~4% (3.9% updated) | The classic 4% rule; Morningstar’s 2025 research put a safe starting rate near 3.9% for a 30-year retirement. |
| Income replacement | 70–80% | A common planner target for retirement spending relative to pre-retirement income. |
| Savings multiple at 67 | ~10× salary | Fidelity’s guideline suggests roughly 10 times your ending salary saved by age 67. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: July 2026
- Safe-withdrawal-rate research
The 4% rule originates with Bengen (1994) and the Trinity Study (1998); Morningstar’s annual State of Retirement Income (2025) revised a safe starting rate to about 3.9%. These are guidance, not guarantees — sequence-of-returns risk and market valuations matter.
- Income-replacement guidelines
A 70–80% replacement rate reflects a rough consensus among financial planners, and Fidelity’s savings-multiple framework (about 10× salary by 67) is a widely cited benchmark.
How to Use This Calculator
- Enter your current annual income and the percentage of it you want to replace in retirement (70–80% is a common target).
- Enter the annual Social Security income you expect, so only the remainder needs to come from savings.
- Set a safe withdrawal rate (around 4%), your current savings, expected return, and years until retirement.
- Read your nest egg target and the monthly savings needed to reach it on time.
Frequently Asked Questions
How much do I need to retire?
A common approach is to estimate your annual retirement spending, subtract expected Social Security, and divide the remainder by a safe withdrawal rate (around 4%). Replacing 70–80% of pre-retirement income is a frequently cited target. This calculator combines those steps into one number.
Is the 4% rule still safe?
The 4% rule remains a reasonable rule of thumb, but forward-looking research has revised it. Morningstar’s 2025 analysis put a safe starting withdrawal rate near 3.9% for a 30-year retirement, while some historical studies support higher rates. Lower rates are safer, especially for longer or earlier retirements.
Where does the “25 times expenses” figure come from?
It is the inverse of the 4% rule: if you withdraw 4% of your portfolio in the first year, you need 25 times that first-year withdrawal saved (1 ÷ 0.04 = 25). A 3.9% rate implies roughly 26 times, and a more conservative 3.5% implies about 29 times.
Does my nest egg target include my home or Social Security?
No to your home — this figure is the invested portfolio your withdrawals come from, not home equity. Social Security is handled separately: you enter it as expected income, so only the spending it does not cover has to come from your nest egg.
What if I plan to retire early?
A longer retirement horizon requires a lower safe withdrawal rate, because the portfolio must last more years and survive more market cycles. If you plan to retire well before your 60s, consider using a withdrawal rate closer to 3.5% or lower to size your nest egg.
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