Retirement Calculator

Retirement savings grow through compound interest, which means you earn interest on both your initial savings and the accumulated interest from previous periods. The formula used is:

Future Value = P(1 + r/n)^(nt) + PMT × (((1 + r/n)^(nt) - 1) / (r/n))

Where P is principal, r is annual interest rate, n is compounding periods per year, t is time in years, and PMT is regular contribution.

Starting early with retirement savings allows more time for compound interest to work in your favor. Even small regular contributions can grow significantly over decades.

For example, saving $200 monthly at 7% annual return becomes over $250,000 in 30 years, with only $72,000 coming from your contributions and the rest from investment growth.

Small differences in annual return rates significantly impact long-term growth. A 2% higher return can result in dramatically larger retirement savings over 20-30 years.

This is why diversifying investments and managing fees is crucial for retirement planning.

We use compound interest calculations with monthly contributions. The calculator compounds interest monthly based on your annual return rate and adds your monthly contributions to determine the final balance.

Yes, select your preferred currency from the dropdown menu at any time. All values will update automatically with the appropriate currency symbol.

This calculator assumes fixed monthly contributions. For variable contribution scenarios, you may want to calculate different time periods separately or use a more advanced retirement planner that accommodates contribution changes.

No, the results are in today's dollars without inflation adjustment. For a more accurate projection, you could use a real return rate (nominal return minus inflation rate) in your calculations.

The calculator compounds interest monthly, which is standard for most retirement savings accounts. This means your annual return rate is divided by 12 and applied to your balance each month.