How the projection works
This is a standard compound-growth projection: your current savings and every future monthly contribution are assumed to grow at your expected annual return until your retirement age. The projected balance is then multiplied by your chosen withdrawal rate to estimate a sustainable annual income.
Worked example
Suppose you're 30 years old, plan to retire at 65, have $20,000 saved, contribute $500 a month, and expect a 7% annual return:
- Years to grow: 65 − 30 = 35 years
- Projected balance at 65: roughly $1,135,903
- Estimated sustainable income at a 4% withdrawal rate: roughly $45,436/year (about $3,786/month)
Try these exact numbers in the calculator above to see the full year-by-year growth path.