Retirement Nest Egg Calculator
How much capital do you need to retire comfortably?
Retirement Spending
Return Assumptions
Current Situation
Projection Breakdown
Withdrawal Rate Scenarios
| Rate | Capital Needed | Years Lasting |
|---|---|---|
| 3.0% | $1,200,000 | ∞ Perpetual |
| 3.5% | $1,028,571 | ∞ Perpetual |
| 4.0% | $900,000 | 0 yrs |
| 4.5% | $800,000 | 0 yrs |
| 5.0% | $720,000 | 0 yrs |
The 4% row is highlighted — it's the most commonly referenced safe withdrawal rate (Trinity Study, 1998).
Return Sensitivity
Methodology & Assumptions
Required capital is calculated using the Present Value of an annuity at the real return rate (Fisher equation: real = (1+nominal)/(1+inflation) - 1). Accumulation projections use Future Value of annuity for periodic contributions. All values are in today's purchasing power. This is a deterministic model — actual outcomes depend on sequence of returns, tax implications, and spending flexibility.
Frequently Asked Questions
How much do I need to retire?
It depends on your spending, expected returns, and how long you'll be retired. A common rule of thumb is 25× your annual spending (the 4% rule), but this calculator provides a more precise estimate using present value of annuity math.
What is the 4% rule?
The 4% rule (Trinity Study, 1998) suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation. Historically, this has sustained a 60/40 portfolio over 30 years with a ~95% success rate.
Should I use nominal or real returns?
This calculator uses the Fisher equation to convert nominal returns to real returns automatically. You input the nominal rate and inflation separately, giving you a more accurate picture of purchasing power.
What's a reasonable return assumption?
A diversified portfolio of stocks and bonds has historically returned 5-8% nominally. Using 7% nominal with 3% inflation (= ~4% real) is a moderate, defensible assumption.
How does sequence of returns risk affect this?
This calculator uses a deterministic model (constant returns). In reality, bad returns early in retirement are far more damaging than bad returns later. Consider running Monte Carlo simulations for a fuller picture.
Should I include Social Security / pension?
This calculator focuses on personal savings. If you expect Social Security or a pension, subtract that monthly amount from your spending input to reflect only the portion your portfolio needs to cover.