Retirement & Planning

Retirement Nestegg Calculator

Do you know how much it takes to create a secure retirement? Use this calculator to help determine what size your retirement nestegg should be.

Inputs

Annual income needed

Years in retirement

Return during retirement

Inflation rate

Other annual income (Social Security, pension)

Estimates only. Adjust any value to recalculate instantly.

Results

Nest egg you need $812,768 to draw $36,000 a year (inflation-adjusted) for 30 years

Income to fund yourself $36,000 after other income

Required nest egg $812,768

Real return assumed 1.94%

4%-rule estimate $900,000

Funding your retirement income

From your nest egg $36k
Other income $24k

Nest egg balance Nest egg

This funds an inflation-adjusted $36,000 a year for 30 years. As a cross-check, the popular 4% rule suggests about $900,000. Social Security and pensions reduce what your savings must cover.

Nest egg drawdown by year (inflation-adjusted income)View table

Year	Withdrawal	Earnings	Balance
1	$36,000	$40,638	$817,406
2	$37,080	$40,870	$821,197
3	$38,192	$41,060	$824,064
4	$39,338	$41,203	$825,929
5	$40,518	$41,296	$826,707
6	$41,734	$41,335	$826,309
7	$42,986	$41,315	$824,638
8	$44,275	$41,232	$821,595
9	$45,604	$41,080	$817,071
10	$46,972	$40,854	$810,953
11	$48,381	$40,548	$803,119
12	$49,832	$40,156	$793,443
13	$51,327	$39,672	$781,788
14	$52,867	$39,089	$768,010
15	$54,453	$38,400	$751,957
16	$56,087	$37,598	$733,468
17	$57,769	$36,673	$712,372
18	$59,503	$35,619	$688,488
19	$61,288	$34,424	$661,625
20	$63,126	$33,081	$631,580
21	$65,020	$31,579	$598,139
22	$66,971	$29,907	$561,075
23	$68,980	$28,054	$520,149
24	$71,049	$26,007	$475,108
25	$73,181	$23,755	$425,682
26	$75,376	$21,284	$371,590
27	$77,637	$18,580	$312,533
28	$79,966	$15,627	$248,193
29	$82,365	$12,410	$178,237
30	$84,836	$8,912	$102,313

How the retirement nestegg calculator works

It works out the income your savings must provide after other sources, then calculates the lump sum needed today to fund that inflation-adjusted income for your expected retirement length, using a real (inflation-adjusted) return.

Worked example

Worked example: with annual income needed of $60,000, years in retirement of 30 and return during retirement of 5.00%, the retirement nest egg calculator shows nest egg you need of $812,768.

Income to fund yourself: $36,000
Required nest egg: $812,768
Real return assumed: 1.94%
4%-rule estimate: $900,000

The formula

Nest egg = annual need × (1 − (1 + real rate)⁻ⁿ) ÷ real rate, where real rate = (1 + return) ÷ (1 + inflation) − 1 and n is years in retirement.

Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.

Frequently asked

Questions about the retirement nestegg calculator

How big a nest egg do I need to retire?

Enough to fund the income gap your savings must cover, for as long as you expect retirement to last. The calculator gives a present-value figure and a 4%-rule cross-check.

What is the 4% rule?

A guideline that withdrawing 4% of your savings in year one (then adjusting for inflation) has historically lasted about 30 years. Dividing your income need by 4% gives a quick target.

Does Social Security reduce what I need?

Significantly. Every dollar from Social Security or a pension is a dollar your nest egg does not have to provide, which is why the calculator subtracts other income.

Is the Retirement Nestegg Calculator free to use?

Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.

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