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VELNARO

Retirement Calculator

Estimate the retirement pot you need from your desired annual income, then see the monthly contribution required to reach it based on your current savings and expected return.

4% is the classic rule of thumb.

Retirement pot needed

$1,000,000.00

Current savings will grow to

$114,508.36

Shortfall to close

$885,491.64

Monthly contribution needed

$1,093.10

Total you will contribute

$327,930.84

How this was worked out

  1. Step 1Pot needed = desired income ÷ withdrawal rate = 40,000 ÷ 0.04 = $1,000,000.00
  2. Step 2Current savings grow to $114,508.36 over 25 years at 7%
  3. Step 3Monthly contribution to close the gap = $1,093.10

This is a planning estimate. It ignores inflation, tax, pension rules, state benefits and changes in your circumstances.

Formula

Pot needed = desired income ÷ withdrawal rate; Monthly = gap × r ÷ ((1 + r)ⁿ − 1)

Example

Input

$40,000/year income, 4% withdrawal, 25 years, $20,000 saved

Result

Pot needed $1,000,000; ≈ $1,150 per month

Frequently asked questions

It suggests you can withdraw 4% of your retirement pot in the first year and adjust for inflation afterwards, giving a good chance of the money lasting 30 years.

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