This comprehensive online Retirement Fund Calculator will calculate how much you need to be saving each month in order to fully fund your retirement plan.
The calculator includes options for factoring in inflation, taxes, up to three post-retirement incomes, and up to 4 one-time contributions (sale of home, etc.). You can also print out printer-friendly retirement planning reports for any number of what-if scenarios.
If you would prefer a simpler calculator that does not attempt to account for inflation and taxes, please use the Retirement Saving Calculator.
Or, if you prefer to use a calculator that does account for inflation, but is less comprehensive than the one on this page, you may want to refer to the Calculate Retirement Savings page.
With that, let's use the Retirement Fund Calculator to calculate how much you need to be saving now in order to fully fund your plan.
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Annual return on investments (ROI): This is percentage by which you expect your investments to grow.
Estate: Your estate includes everything you own, including all assets and liabilities. If you would like to insure a certain dollar value of your estate is left to your heirs, then you will need to include this amount in your funding plan.
Inflation: Basically, inflation is the rise in the price of goods and services over time. The inflation rate is an attempt to quantify inflation, and is based on the rise of the Consumer Price Index (CPI). Theoretically, if the inflation rate is estimated to be 4%, $1 will only be worth 96¢s; a year from now. Or to put in another way, a product selling for $1 now will likely sell for $1.04 a year from now. Therefore, to make a more realistic retirement plan, inflation should be considered -- though likely not at face value. After all, as prices rise, wages tend to also rise, thereby offsetting at least a portion of the effects of inflation.
Inflated Need: When inflation is factored into planning for retirement, the desired income goal must be annually adjusted upward by the inflation rate so that by the time you retire your income will buy the same amount of goods and services as they would today.
Net Present Value (NPV): NPV is the sum of the present values (PVs) of the individual cash flows. Present value (PV) is the current value for a future amount based on a certain interest rate and a certain time period. PV computations allow you to determine how much you need to deposit now in order to obtain a desired total in the future.
Your age as of the end of this year: If you are creating this plan for more than one person, enter the age of the oldest person.
Age you hope to retire at: If you are creating this plan for more than one person, enter the retirement age for the oldest person.
Age you expect to live until: Enter your life-expectancy age. If you are creating this plan for more than one person, enter the life-expectancy age of the person expected to live the longest. If you would like to calculate this entry, feel free to visit the Calculate Life Expectancy page or the more comprehensive Life Expectancy Quiz for additional information.
Desired annual income during retirement: Enter the desired annual household retirement income, without adjusting for inflation.
Lower annual income needed by: If you believe your retirement income needs will decrease as your retirement years pass, enter number of years between the need reductions in the left field and the reduction percentage in the right-hand field. Otherwise, leave both fields blank.
Amount I want to leave to heirs: If you would like to leave an estate to your heirs, enter the dollar amount here. Your retirement savings will be depleted to this value instead of zero.
Anticipated average annual inflation rate: Enter the expected average annual rate of inflation between now and the end of your retirement plan.
Present amount in retirement savings: Enter the amount of your current retirement savings.
Present monthly contribution amount: Enter the amount of your current monthly contributions to your retirement fund.
Age you will stop making monthly contributions: Enter the age you plan to stop making monthly contributions to your retirement fund.
Annual interest rate you expect to earn on your fund: Enter the annual interest rate you expect to earn on your retirement investment. Enter as a whole number (for 6.5% enter 6.5).
Combined state and federal tax rate after you retire: Enter your projected combined Federal and State income tax rate percentage during your retirement (for .20, enter 20).
Source of Lump Sum column: If you would like to give the lump sum contributions names for the report, you can do so in the fields in this column.
Age column: For each expected lump sum contribution enter the age you expect to add it to your retirement fund. Note that the entered age must be greater than your current age and less than your life expectancy age in order to be included in the calculations.
Amount column: the amount of each lump sum contribution you expect to add to your retirement fund.
Income Source column: If you would like to give the retirement incomes names for the report, you can do so in the fields in this column.
Annual COL Adjustment: If you expect a retirement income to receive an annual COLA (Cost of Living Adjustment), enter the percentage in the left field in this column and then choose when the annual COLA should begin (Now or when you Retire). Otherwise, leave the percentage field blank.
Start Stop Ages: Enter the age to begin the expected monthly retirement income in the left-hand field (must be greater than or equal to retirement age entered in top section) and the age to end this expected retirement income in the right-hand field.
Monthly column: Enter the monthly amount for each expected retirement income. IMPORTANT: In order to have each income included in the calculations, you must enter both a start and a stop age in the corresponding fields.
Savings needed when you retire: This is the amount you will need to have saved by retirement age in order to fund your retirement plan.
Retirement savings based on your entries: Based on your current savings, current contributions and expected annual return on your retirement investments, this is how much you will have saved by retirement age.
Estimated savings surplus/-shortfall: This is the difference between how much you will need to have saved and how much you will have saved based on your present entries. A positive number represents a surplus, whereas a negative number represents a shortfall.
Monthly saving increase needed for fully funded plan: If your retirement plan shows a shortfall, this is the additional monthly contributions you will need to start making now in order to fully fund your retirement plan.
Current monthly contribution amount: This is your current monthly contributions.
Total monthly savings amount required for fully funded plan: This is the total monthly contribution you need to start making now in order to achieve a fully funded plan.