The nominal balance is the account value shown in future dollars; the real balance translates it back into today's purchasing power. The withdrawal comparison shows how sensitive first-year portfolio income is to the selected rate.
The estimate excludes contribution limits, account-specific tax treatment, fees and required minimum distributions. Retirement income should be evaluated after tax and alongside non-portfolio income.
Your nest egg at retirement and the income it supports (4% rule)
Your savings and month-end contributions compound until retirement age. The projected balance is then multiplied by several withdrawal-rate assumptions to show possible first-year income before tax. Compare those figures with the inflation-adjusted balance; this tool does not simulate the years after retirement.
The nominal balance is the account value shown in future dollars; the real balance translates it back into today's purchasing power. The withdrawal comparison shows how sensitive first-year portfolio income is to the selected rate.
The estimate excludes contribution limits, account-specific tax treatment, fees and required minimum distributions. Retirement income should be evaluated after tax and alongside non-portfolio income.
UNDERSTAND THE NUMBERS
Fixed educational example · independent of your inputs above. $ means US dollars; these are not current rate quotes or return forecasts.
Start at age 40 with $50,000, add $500 monthly and assume 6% annual growth. Compare retirement at 60 and 65. The income column simply applies a 4% annual withdrawal to the projected balance, before tax.
| Retirement age | Projected balance | Monthly income at 4% |
|---|---|---|
| 60 | $387,076 | $1,290 |
| 65 | $552,738 | $1,842 |
The later date adds $30,000 of contributions and lets the existing balance compound for longer. Both columns are future dollars. Before comparing the income with today's rent or groceries, use the inflation-adjusted balance or raise the expense estimate to the retirement year.
This tool models saving up to retirement, not withdrawals through retirement. The 4% illustration does not test whether funds survive a market decline, a long retirement or unexpected spending. Pension income and benefit eligibility are not included.
Compare 3%, 3.5% and 4% income estimates at the same retirement age. Write down the gap between that income and your spending after accounting separately for any expected pension.
Start from spending to estimate a target →Prepared by EconoPi · examples and explanations reviewed September 19, 2026. Tables are our calculations under stated assumptions, not forecasts or recommendations by the referenced organizations.
A common shortcut is 25× your annual spending — the inverse of the 4% rule. Spending $60,000 a year points to a $1.5M nest egg.
The phrase refers to an initial withdrawal of 4% of a portfolio followed by inflation-adjusted withdrawals. This screen only illustrates income as a percentage of the retirement balance; it does not test whether a withdrawal plan lasts.
At a 4% withdrawal it supports about $40,000 a year before other income. Whether that is enough depends on your spending and Social Security.
There is no single return that is conservative for every portfolio. Compare several assumptions suited to the assets and time horizon, and inspect the inflation-adjusted result. Constant growth does not model market volatility.
All math runs in your browser and your inputs are never sent to a server. Settings are saved locally and share links encode the state in the URL. For information only — not investment or tax advice.