Retirement Savings Calculator
Planning for retirement is one of the most important financial decisions you'll make. The earlier you start saving, the more time compound interest has to grow your money. This calculator helps you determine exactly how much you need to save each month to reach your retirement goal.
Enter your current age, desired retirement age, existing savings, expected annual return, and your target nest egg. The calculator computes the required monthly contribution using the future value of an annuity formula, accounting for compound growth on both your existing savings and future contributions.
How it works
PMT = (FV - PV × (1 + r)^n) × r / ((1 + r)^n - 1), where PMT is the monthly payment, FV is the target amount, PV is current savings, r is the monthly interest rate, and n is the total number of months.
Use cases
- Determining how much to save monthly for a comfortable retirement
- Evaluating whether your current savings rate is on track
- Comparing retirement scenarios with different return rates or target ages
- Understanding the impact of starting to save earlier versus later