Retirement Savings Calculator
Project your future portfolio nest egg based on your contributions, compound returns, annual salary raises, and real inflation-adjusted purchasing power.
Age & Contribution Parameters
Default 7.0% assumes ~10% historical stock market return minus ~3% average inflation.
Annual percentage boost to your contribution (e.g., from annual salary raises).
Inflation & Purchasing Power Disclaimer
This projection assumes a 7.0% real (inflation-adjusted) return. Your actual account balance in future dollars will nominally be higher, but this estimate reflects what that nest egg will be worth in today's real purchasing power. Past performance and estimates do not guarantee future market returns.
Retirement Nest Egg Growth Trajectory
Frequently Asked Questions
Fact-checked rules for compounding, inflation, and retirement planning.
Why does this calculator use a 7% inflation-adjusted default return?
Historical stock market returns (such as the S&P 500) average roughly 10% nominally before inflation. Subtracting an average annual inflation rate of ~3% yields a 7% real (inflation-adjusted) return. By using 7%, your projected retirement balance is expressed in today's purchasing power rather than inflated future dollars.
What is the difference between nominal and real (inflation-adjusted) returns?
Nominal return is the raw dollar growth of your account. Real return subtracts the eroding effect of inflation. A $1,000,000 nominal balance 30 years from now may only buy $400,000 worth of goods in today's terms. Expressing your goals in real purchasing power provides a realistic picture of your future retirement lifestyle.
How does compounding work over a 20 to 30-year retirement horizon?
Compounding means you earn returns not only on your original contributions, but also on all accumulated growth from previous years. Over a 30-year timeline, compound interest typically accounts for 60% to 75%+ of your final portfolio balance.
Why should I model annual contribution increases?
As your career advances and your salary grows through raises or promotions, increasing your monthly contribution by even 2% to 3% each year significantly boosts your final retirement nest egg without straining your current lifestyle.