How the Retirement Nest Egg Calculator works
Estimate the nest egg needed for retirement income. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this retirement nest egg calculator to estimate how much savings may be needed to support a retirement spending goal. It is helpful for translating monthly spending into a target portfolio size.
Formula
Nest egg needed = annual savings-funded spending / withdrawal rate
- Monthly retirement spending is the total spending goal.
- Monthly pension or benefits reduce the amount needed from savings.
- Withdrawal rate converts annual savings-funded spending into a target nest egg.
Worked example
For $5,000 monthly retirement spending, $1,800 monthly pension or benefits and a 4% withdrawal rate, the calculator estimates the savings needed to fund the remaining gap.
Common mistakes
- Ignoring inflation between now and retirement.
- Using a withdrawal rate that is too aggressive for your risk level.
- Forgetting taxes and irregular expenses.
FAQs
Why subtract pension income?
Pension or benefit income reduces the spending that must be funded from savings.
Is the nest egg target exact?
No. It is a planning estimate based on a withdrawal-rate shortcut.
Should I include housing costs?
Yes. Include any recurring retirement spending you expect to pay.