What rate of return should I assume?

The historical average annual return for the S&P 500 is about 10% before inflation, or roughly 7% after inflation. For conservative planning, many financial planners recommend using 6-7% for stock-heavy portfolios and 4-5% for balanced portfolios.

How much should I save for retirement?

The traditional guideline is 15% of gross income, but in the FI community the goal is often 50% or more. The right amount depends on when you want to retire. Use this calculator to find the monthly contribution needed to reach your target by your desired date.

How does inflation affect my projection?

Inflation erodes purchasing power over time. A million dollars in 30 years will buy less than it does today. To account for this, use real (inflation-adjusted) returns of around 7% instead of nominal returns of 10%. This calculator uses nominal returns, so mentally adjust your target upward.

What if there is a market crash during my retirement?

Sequence of returns risk is real. Having 2-3 years of expenses in bonds or cash, flexible spending rules, and diversified income sources helps. The 4% withdrawal rate already accounts for many historical downturns, but consider a 3.5% rate for extra safety.

Should I include my employer match in my projections?

Absolutely. An employer match is free money and should be included in your total monthly contribution. If your employer matches 50% up to 6% of your salary, that is effectively 3% additional savings on top of your own contributions.

Resources

Retirement Projection

See exactly how your portfolio will grow over time. Compound growth is the most powerful force in building wealth — and this calculator brings it to life.

The Power of Compound Growth

Your money earns returns. Those returns earn returns. Slide the controls and watch compound growth work its magic.

Assumes 7% annual return (inflation-adjusted)

Projected future value

Monthly Contribution

$100/mo $3,000/mo

Investment Timeline

5 years 40 years

Total Contributed

Investment Growth

Future Value

Your contributions Compound growth

Your money earned more than you put in. Compound growth contributed on top of your in contributions.

Project Your Portfolio Growth

Adjust your contributions and return assumptions to see different scenarios.

Retirement Projection Calculator

Estimate how much your investments could grow by the time you retire.

Current Age

Retirement Age

Current Investments ($)

Total of all investment accounts

Monthly Contribution ($)

Annual Return (%)

Historical S&P 500: ~7-8%

Estimated Retirement Savings

In years, your investment could be worth:

Initial Balance

Contributions

Growth

Choosing Your Assumptions

The inputs you choose matter. Here is how to think about each one.

Rate of Return

Key Variable

The S&P 500 has historically returned about 10% per year before inflation, or roughly 7% after inflation. For conservative planning, use 6-7% for stock-heavy portfolios and 4-5% for balanced portfolios. Being conservative means pleasant surprises later.

Conservative

6-7%

Inflation-adjusted, stock-heavy

Aggressive

9-10%

Nominal returns, before inflation

Time Horizon

Most Powerful

Compound growth accelerates over time. The first 10 years feel slow, but the last 10 years are explosive. At 7% annual returns, your money roughly doubles every 10 years. Five extra years can add hundreds of thousands of dollars — this is why starting today matters more than starting perfectly.

10 Years

20 Years

30 Years

Monthly Contributions

You Control This

Include all investment vehicles in your monthly contribution number. Consistent contributions matter more than timing the market. Even small increases compound dramatically over decades.

401(k)

$23,000/yr limit + employer match

Roth IRA

$7,000/yr, tax-free growth

HSA

Triple tax advantage

Taxable

No limits, full flexibility

Starting Balance

Head Start

Every dollar already invested has the longest runway for growth. Include all current retirement and investment accounts — 401(k), IRA, brokerage, and any other invested assets. A $50,000 head start at 7% becomes an extra $380,000 in 30 years without contributing another cent.

Tip: Do not count home equity or non-invested savings. Only include assets generating market returns.

Early vs Late Starter

Starting early beats investing more. The math proves it.

Early Emma

Starts at age 25

Monthly investment

Years investing

Total contributed

Final portfolio

Late Larry

Starts at age 35

Monthly investment

Years investing

Total contributed

Final portfolio

Emma

Larry

Emma invested HALF as much but ended with MORE

Emma contributed while Larry contributed . Yet Emma ends with more. Those 10 extra years of compound growth are worth more than doubling your monthly investment.