Retirement Nest Egg Calculator
This calculator projects how large your retirement savings could grow based on your current balance, ongoing monthly contributions, expected annual return, and years until retirement. Use it to see the power of compounding and adjust your savings plan accordingly.
How it works
This tool combines two future-value formulas. Your existing balance grows by compounding: FV = P × (1 + r)^n, where P is your current balance, r is the monthly rate, and n is the number of months.
Your monthly contributions form an annuity: FV = PMT × [((1 + r)^n − 1) / r]. The two results are added together to estimate your total nest egg at retirement.
The monthly rate r equals your annual return divided by 12, and n equals years multiplied by 12. Compounding monthly closely mirrors how most retirement accounts grow.
Tips
Start early — even small contributions grow substantially over decades thanks to compounding.
Increasing your monthly contribution by a modest amount often has a larger long-term impact than chasing higher returns.
Re-run the calculator with a conservative return (e.g., 5%) to stress-test your plan against market downturns.
FAQ
What annual return should I assume?
A diversified stock-heavy portfolio has historically averaged about 7% after inflation, though returns vary. Use 5–7% for a realistic range and lower figures to be conservative.
Does this account for inflation?
No. The result is in future nominal dollars. To estimate today's purchasing power, use a lower 'real' return (your expected return minus inflation, roughly 2–3%).
Why are contributions compounded monthly?
Most people contribute monthly, so the calculator compounds at a monthly rate to match how retirement accounts typically grow, giving a more accurate projection than annual compounding.