Retirement Savings Calculator
Forecast your retirement nest egg, monthly compounding investment growth, employer match, and safe 4% withdrawal income.
Retirement Portfolio Parameters
Calculation Methodology & Assumptions
Calculations are performed using official progressive income tax schedules, statutory social contribution caps, and purchasing power metrics. Individual circumstances such as marital filing status, itemized tax deductions, municipal surcharges, or foreign tax credits may alter final payroll figures.
- Future Portfolio Value: FV = PV × (1 + r)^n + PMT × [((1 + r)^n − 1) ÷ r], compounding monthly across your investment horizon.
- Safe Withdrawal Rate (4% Rule): Generates sustainable passive income that historically survived all 30-year market cycles without depleting principal (Trinity Study).
- Assumes long-term diversified index portfolio returns reinvested before retirement.
Frequently Asked Questions
The 4% rule originated from the Trinity Study. It states that an investor withdrawing 4% of their initial portfolio value annually (adjusted for inflation) has a 95%+ probability of never running out of money across a 30-year retirement.
A standard benchmark is 25 times your annual living expenses. If your desired retirement lifestyle costs $60,000 per year, your target nest egg is $1,500,000 ($60,000 ÷ 0.04).
Due to geometric compounding, after 25 to 30 years, over 70% to 80% of your total final nest egg will come from accrued market gains rather than the cash you directly deposited.
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