Is the 4% rule still valid?

It’s a heuristic, not a law. Most modern research suggests 3.5-4% for 30-year retirements. A portfolio-and-spending check with a fee-only advisor is wise as retirement approaches.

How much do I actually need to retire?

About 25× your annual expenses is a common target (the 4% rule in reverse). For $50k/year spending, aim for $1.25M. For $100k/year, $2.5M.

Money & Finance · Free tool

Retirement Calculator

Free retirement calculator. Enter current balance, monthly contributions, and target age to see if you're on track.

Updated April 2026

Starting balance ($)Monthly deposit ($)Annual return (%)Years

Final balance

$1,501,378

You contributed

$500,000

Interest earned

$1,001,378

What it does

A general retirement calculator. Enter your current invested balance (across all retirement accounts), your total monthly contributions, an assumed return rate, and the number of years until you retire. The output is a single number: your projected nest egg at retirement.

A common rule of thumb is the 4% rule — you can safely withdraw 4% of your balance per year in retirement. $1.5M supports about $60k/year of pre-tax spending. Run multiple scenarios: what if you contribute 15% more? What if you work 3 more years? The levers are surprisingly large.

Example input & output

Input

Current total: $50,000
Monthly contributions: $1,500
Annual return: 7%
Years: 25

Output

Projected balance: $1,490,000
4% rule income: $59,600/year pre-tax

Every extra year of work at these contributions adds roughly $140,000 to the final balance.

How to use it

Add up all retirement account balances and enter the total.
Add all monthly contributions (your 401(k) + match + any IRA).
Use 7% as a conservative long-term return assumption.
Enter years to retirement.
Apply the 4% rule to estimate annual retirement income.

When to use this tool

Once a year as a sanity check.
At any major life or income change.

When not to use it

For Social Security or pension planning — those use different math.
For Monte Carlo simulation (variability matters in real retirements).

Common use cases

Annual big-picture retirement check.
Testing the effect of a major contribution change.
Deciding whether you can retire in X years.

Frequently asked questions

Is the 4% rule still valid?: It’s a heuristic, not a law. Most modern research suggests 3.5-4% for 30-year retirements. A portfolio-and-spending check with a fee-only advisor is wise as retirement approaches.
How much do I actually need to retire?: About 25× your annual expenses is a common target (the 4% rule in reverse). For $50k/year spending, aim for $1.25M. For $100k/year, $2.5M.