Retirement Savings Calculator 2024
Plan your retirement with our comprehensive calculator. See how compound interest grows your 401(k), IRA, and other retirement savings over time. Calculate how much you need to save monthly to reach your goals.
Retirement Details
Historical stock market average: 7-10%
Long-term average: 2-3%
Retirement Planning Strategies
Start Early
The power of compound interest means starting early is more important than contributing large amounts. Even $100/month at age 25 can grow to over $350,000 by retirement.
Get the Match
Always contribute enough to get your full employer 401(k) match - it's free money with an immediate 100% return on investment.
Understanding the Results
Our retirement calculator shows you the power of consistent saving and compound growth:
Key Calculations
Future Value Formula
FV = PV(1+r)^n + PMT × [((1+r)^n - 1) / r]
Where FV = Future Value, PV = Present Value, r = Annual Return, n = Years, PMT = Monthly Contribution
Inflation Adjustment
We calculate both nominal and inflation-adjusted values to show your real purchasing power in retirement.
Retirement Account Types
401(k)
- • Employer-sponsored
- • Higher contribution limits
- • Potential employer match
- • Limited investment options
Traditional IRA
- • Tax-deductible contributions
- • Taxed on withdrawal
- • Required distributions at 73
- • More investment options
Roth IRA
- • After-tax contributions
- • Tax-free withdrawals
- • No required distributions
- • Income limits apply
Catch-Up Contributions
If you're 50 or older, you can make additional "catch-up" contributions:
- 401(k): Additional $7,500 (total $30,000 in 2023)
- IRA: Additional $1,000 (total $7,000 in 2023)
- Simple IRA: Additional $3,500
Frequently Asked Questions
How much should I save for retirement?
Financial experts recommend saving 10-15% of your income for retirement. This includes employer matches. The earlier you start, the less you need to save monthly due to compound growth.
What's the difference between a 401(k) and IRA?
A 401(k) is employer-sponsored with higher contribution limits ($22,500 in 2023) and potential employer matching. An IRA is individual with lower limits ($6,000 in 2023) but more investment options.
When can I withdraw from my retirement accounts?
Generally, you can withdraw from 401(k) and traditional IRA accounts penalty-free starting at age 59½. Early withdrawals typically incur a 10% penalty plus income taxes.
How does compound interest work in retirement savings?
Compound interest means you earn returns on both your contributions and previous earnings. Over time, this creates exponential growth - the earlier you start, the more powerful the effect.
Should I prioritize 401(k) or IRA contributions?
First, contribute enough to your 401(k) to get the full employer match (free money). Then consider maxing out an IRA for more investment options, followed by additional 401(k) contributions.