Calculator guide
Project retirement savings from a current balance, monthly contribution, annual return assumption, and time horizon.
Formula or method
Future value = P(1+r)^n + C[((1+r)^nā1)/r], where r is annual return/12, n is months, P is current savings, and C is the monthly contribution.
How to use this calculator
- Enter current savings, monthly contribution, expected annual return, and years to retirement.
- Compare projected value with total contributions.
- Test lower returns and different contribution amounts rather than relying on one projection.
Worked example
$50,000 already saved, $500 monthly for 25 years at a 7% annual assumption projects about $691,307; contributions total $200,000 including the starting balance.
Understanding the result
This is a nominal mathematical projection with monthly compounding. It does not state what a diversified portfolio will earn.
Limitations and assumptions
- Ignores taxes, fees, inflation, contribution limits, employer matches, withdrawals, and market losses.
- Returns are not guaranteed and arrive unevenly in real markets.
Frequently asked questions
Does the result account for inflation?
No. A future dollar may buy less; use a lower real-return assumption for a rough comparison.
Are deposits assumed at the beginning or end of a month?
The formula treats contributions as end-of-month deposits.
Should I use the highest historical return?
No. Consider conservative scenarios and seek qualified financial guidance.
Sources
Educational projection only; not financial advice or a guarantee of retirement income.