Finance Tools
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.
Retirement Spending Calculator
Estimate how much retirement savings you may need based on your planned spending and a withdrawal rate (for example, 4%). This tool also compares required savings vs your current portfolio to show the gap.
Results
Planned Spending (annual): $60,000
Needed from Portfolio (annual): $40,000
Required Retirement Savings (estimate): $1,000,000
Current Portfolio: $800,000
Gap (required − current): $200,000
Gap remains (portfolio below the estimate).
How to estimate required retirement savings
A common planning method is to estimate the annual amount you need from your portfolio (spending minus other income) and divide it by a withdrawal rate. This gives a rough “required nest egg” estimate.
FAQ
Is this inflation-adjusted?
No. This tool uses today’s dollars. You can reduce the return expectations or increase spending assumptions to approximate inflation.
Is the withdrawal rate guaranteed?
No. Withdrawal strategy depends on market returns, inflation, and flexibility. This calculator is for planning estimates.
How to use this retirement spending calculator
- Enter your planned monthly or annual retirement spending.
- Enter expected other annual income sources (optional).
- Choose a withdrawal rate (e.g., 4%).
- Review the required retirement savings (nest egg) and the gap vs your current portfolio.
Example
If you want $60,000 per year of spending and expect $20,000 per year from other income, you need $40,000 per year from your portfolio. At 4%, required savings is $1,000,000.
- Planned spending = $60,000/yr
- Other income = $20,000/yr
- Needed from portfolio = $40,000/yr
- Required savings = $40,000 ÷ 0.04 = $1,000,000
More tools in Finance Tools
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- FIRE Retirement Calculator
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- Retirement Calculator
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