Retirement Calculator - Project Savings, Income and Inflation

What is a retirement calculator?

A retirement calculator turns a savings plan into a retirement income estimate. It connects four questions: how much you already have, how much you will add, how fast it may grow, and how much income you want when you stop working.

This tool is focused on planning, not pension law. It gives a clear projection of savings, retirement spending, inflation impact and the age your money may last to.

What this calculator estimates

The saving phase estimates your future retirement balance from current savings, recurring contributions and expected return before retirement. The spending phase starts at retirement age, stops contributions, applies the retirement return and subtracts your monthly spending target, adjusted upward each year for inflation.

The summary then answers the practical question: does the pot last to the plan age, or does it run out earlier? The inflation-adjusted balance stays visible so nominal balances are not confused with current purchasing power.

Worked example with the default inputs

Start at age 35, retire at 67, begin with €50,000, add €500 per month, assume a 6% annual return and 2.5% inflation. Over 32 years, the projected future balance is about €882,847.

• Balance in today's money: about €400,610
• Total future contributions: €192,000
• Investment growth before retirement: about €640,847
• Retirement spending target: €2,500 per month in today's money

After retirement, the calculator keeps projecting until age 95. Monthly spending is increased with inflation and the remaining balance grows with the retirement return. If the pot runs out before 95, the summary estimates how much extra you would need to save each month before retirement.

How contributions and compounding work

Returns compound monthly. Each month, the calculator applies the monthly return to the current balance and then adds the normalized contribution for that month.

Contribution frequency is converted to a monthly timeline. A weekly contribution of €100 equals €100 × 52 ÷ 12 ≈ €433 per month. An annual contribution of €6,000 equals €500 per month. The calculator applies the correct monthly equivalent regardless of frequency.

Balance versus inflation-adjusted balance

The balance is the nominal amount — the number of euros, dollars or pounds the model estimates in the account before adjusting for inflation.

The inflation-adjusted balance divides that amount by the cumulative inflation factor. With 2.5% inflation over 32 years, the factor is about 2.2 — meaning €882,847 nominal is worth only about €400,610 in today's money. This helps you avoid reading a large balance as if it had the same buying power today.

Income target and plan age

The target monthly income should be entered in today's money. If you want €2,500 of current spending power, enter €2,500 even though the nominal amount needed in the future may be significantly higher after decades of inflation.

The plan age tells the calculator how long the money should last. With retirement at 67 and plan age 95, the retirement phase lasts 28 years. Setting a higher plan age increases the required balance at retirement because the pot must fund more years of withdrawals.

How the extra monthly contribution is estimated

When the pot runs out before the plan age, the calculator searches for the extra monthly contribution needed before retirement. It adds that amount during the saving phase and repeats the full projection until the money lasts to the plan age.

This is a planning estimate. If future returns are lower, inflation is higher, or fees reduce returns, the required contribution can increase significantly. The extra monthly amount is found using a binary search, so it is as precise as possible given the assumptions entered.

Choosing realistic assumptions

• Return before retirement: a diversified equity portfolio has historically returned 5–8% per year over long periods; a balanced 60/40 portfolio may average 4–6%. The calculator defaults to 6%.
• Return during retirement: most planners lower this assumption once withdrawals begin, to reflect a more conservative portfolio. A range of 3–5% is common; the calculator defaults to 4%.
• Inflation: long-run inflation in developed economies is typically 2–3%. Healthcare and housing costs often rise faster. The calculator defaults to 2.5%.
• Contribution increases: an annual increase of 2–3% keeps contributions roughly in line with wage growth and inflation over time.

What is not included

• Tax rules, pension account limits, required distributions, healthcare costs and country-specific benefit formulas are not included.
• State pensions, Social Security, annuities, rental income and workplace contributions can be entered as custom lines in extra options. Mark each line as income received during retirement or money added before retirement.
• No investment fees, sequence-of-returns risk or country-specific retirement rules are modeled.
• Currency only changes formatting. It does not apply exchange rates or convert local purchasing power.
• This calculator is for education and planning only and does not provide financial, pension, tax or legal advice.

Supporting calculators

• Compound growth: use the Compound Interest Calculator to focus on compounding mechanics.
• Income check: use the Investment Income Calculator to convert invested capital into yearly and monthly income.
• Inflation check: use the Inflation Calculator to see how inflation changes purchasing power over time.