Retirement Calculator

What is a Retirement Calculator?

A Retirement Calculator helps you reverse-engineer your financial future. It tells you exactly how massive your investment portfolio needs to be on the day you retire, and exactly how much you need to invest every month today to reach that astronomical number. This is the foundational tool for the FIRE (Financial Independence, Retire Early) movement.

The Devastating Impact of Inflation

If your monthly expenses are $602 today, you cannot plan your retirement assuming you will need $602 a month in 30 years. Assuming your expected 6% inflation rate, that exact same lifestyle will cost almost $3,460 a month when you retire. Our engine automatically inflates your current expenses to their future value before calculating your target corpus.

The 4% Rule (The Safe Withdrawal Rate)

How do you know how much total money you need to retire? The global gold standard is the '4% Rule' (or the 25x Rule). The theory states that if you invest your money in a diversified portfolio of stocks and bonds, you can safely withdraw 4% of your total portfolio every year (adjusted for inflation) and your money will never run out.

Target Retirement Corpus = Annual Retirement Expenses × 25

How to Reach Your Goal Faster

Start Earlier: Because of compound interest, every dollar you invest in your 20s is worth roughly ten times more than a dollar invested in your 40s.
Increase Your Savings Rate: The percentage of your income you save is the single biggest determining factor in when you can retire. Saving 50% of your income allows you to retire in roughly 15-17 years.
Lower Your Expected Expenses: By moving to a cheaper city or country in retirement (Geo-Arbitrage), you drastically lower your required 'Annual Expenses', which slashes your required Target Corpus by millions.