Retirement Savings Calculator
Project your retirement nest egg, see how long it will last, and understand how inflation erodes your purchasing power.
The 4% Rule
The 4% rule — from the landmark 1994 "Trinity Study" — says a retiree can withdraw 4% of their portfolio in year one, then adjust for inflation each year, with a high probability of the portfolio lasting 30 years. A $1,000,000 portfolio supports $40,000/year ($3,333/month) under this rule.
Nominal vs. Inflation-Adjusted
Nominal balance is the raw dollar amount. Inflation-adjusted (real) balance tells you what that money will actually buy in today's dollars. At 3% inflation over 30 years, $1 today is worth about $0.41 — so a $1M nominal balance has roughly $410K in today's purchasing power.
Why Return Rate Matters So Much
The difference between a 6% and 8% average return over 30 years, starting with $25K and contributing $500/month, is over $700,000 in final balance. Even 1% matters enormously over long periods. This is why minimizing fund expense ratios is so important — a 1% expense ratio is a 1% permanent drag on returns.