This calculator projects a future retirement savings balance by combining your current savings, regular monthly contributions, and estimated investment growth compounded over time.
The formula
Where monthly rate = annual rate ÷ 12, and months = years × 12. This is the standard compound interest formula applied to both a lump sum and a recurring contribution stream.
Worked example
Starting with $10,000, contributing $300 monthly, over 25 years at 6% annual growth: the projected balance comes to roughly $253,000 — a combination of your $10,000 growing on its own, plus 300 monthly contributions each compounding for the remaining time after they're made.
Important assumptions and limitations
- Constant growth rate. Real investment returns vary year to year; this uses a simplified constant-rate projection, not a guarantee.
- No inflation adjustment. The projected balance is in future (nominal) dollars, not adjusted for inflation — the real purchasing power will be lower than the raw number suggests.
- No fees or taxes factored in. Investment fees and applicable taxes will reduce real-world returns compared to this simplified projection.
This tool provides a general educational estimate and is not financial advice. Consult a qualified financial advisor for retirement planning specific to your situation.
Frequently asked questions
How accurate is this retirement projection?
It's a simplified estimate using a constant assumed growth rate. Real investment returns vary year to year, and this projection doesn't account for fees, taxes, or inflation, so treat it as a planning reference rather than a guarantee.
Does this account for inflation?
No, the result is shown in future (nominal) dollars. Use the inflation calculator alongside this tool to estimate real purchasing power at retirement.
What growth rate should I use?
There's no universally correct answer; many long-term projections use a conservative historical average for a diversified portfolio, but actual future returns are uncertain and this figure should be treated as an assumption, not a promise.