See if you're on track for retirement based on your savings, contributions, and goals.
This calculator uses the compound growth formula to project your savings. Each month, your existing balance grows by the monthly return rate, and your new contribution is added. Over decades, compound growth does most of the heavy lifting.
The 4% rule, developed from the Trinity Study, suggests that you can withdraw 4% of your retirement savings in the first year of retirement, then adjust for inflation each subsequent year, with a high probability that your money will last 30 years. So if you have $1,000,000 saved, you can withdraw roughly $40,000 per year ($3,333/month).
A common guideline is to save 25 times your desired annual retirement income. If you want $4,000/month ($48,000/year) in retirement, you'd target $1,200,000 in savings. This aligns with the 4% withdrawal rule.