Finance Tools
Early Retirement Calculator
Estimate how many years until you can retire early based on your current savings, annual contributions, expected return, and target spending using a withdrawal rate.
Early Retirement Calculator
Estimate how many years it may take to reach your retirement target based on savings, investment returns, and a withdrawal rate. This is a simplified planning model (real results vary).
Results
Target Nest Egg (estimate): $1,250,000
Estimated time to reach target: 16 years.
Assumptions: Annual savings $30,000, return 6%, withdrawal rate 4%.
How early retirement estimates work
A common approach is to estimate a target portfolio (nest egg) by dividing annual retirement spending by a withdrawal rate. Then you project portfolio growth by applying an annual return and adding annual savings until the target is reached.
FAQ
Does this include inflation and taxes?
No. This tool is a simplified model. Inflation, taxes, and real market volatility can change outcomes. For more conservative planning, lower the return rate or increase spending assumptions.
How to use this early retirement calculator
- Enter your current savings.
- Enter how much you add each year (annual savings).
- Enter expected annual return rate.
- Enter your target annual retirement spending.
- Choose a withdrawal rate (e.g., 4%).
- Review the target nest egg and estimated years to reach it.
Example
If you need $50,000 per year in retirement and use a 4% withdrawal rate, the target nest egg is $1,250,000. With $200,000 saved, $30,000 annual savings, and 6% return, you may reach it in around 15–20 years.
- Target spending = $50,000/yr
- Withdrawal rate = 4% → Target nest egg = $50,000 ÷ 0.04 = $1,250,000
- Current savings = $200,000
- Annual savings = $30,000, Return = 6%
- Years to target ≈ ~15–20 (estimate)
More tools in Finance Tools
- FIRE Retirement Calculator
Estimate your FIRE number and how many years it may take to reach financial independence based on income, expenses, savings rate, return rate, and a withdrawal rate.
- Retirement Savings Calculator
Estimate how much you will save for retirement based on current savings, annual contributions, return rate, and years to retirement.
- Retirement Income Calculator
Estimate retirement income from your portfolio using a withdrawal rate. See annual and monthly retirement income based on your retirement savings.
- Retirement Spending Calculator
Estimate how much retirement savings you need based on your planned retirement spending and a withdrawal rate. Compare required savings vs your current portfolio.