Your number: 4% rule for retirement and financial independence
The 4% rule: have enough saved, take out 4% every year, and you don't run out. So "enough" = 25× your annual expenses—for retirement or financial independence. Many people forget medical and fun (e.g. vacations). This calculator includes both.
"It's not how much money you make, but how much you keep and how hard it works for you."
Retirement calculator
Enter your retirement-relevant numbers below. See your number, when you can retire, monthly savings needed, and projected balance.
Inputs
Your situation
Net: $10,000
Post-retirement expenses
Post-retirement income
We do not include Social Security unless you enter it. Income above reduces how much your nest egg must cover.
Results
Disclaimer: This calculator does not include Social Security income unless you enter it in the inputs above.
When can you retire?
Age 50
Invest per month to retire by 62
$672/mo
Why 25×
If you withdraw 4% per year, 25× expenses means your portfolio can support that withdrawal over a long retirement. Use it as a simple target: grow your investments to 25× what you spend each year.
Why we include medical and vacation
In retirement we have more time—often more travel and, as we age, more health costs. I include medical and fun in the number so you won't have to worry about money later.
Related research
The ideas in this guide are backed by academic and policy research. We organize fundamental studies by Margin Score pillar on our Research page.
View research for this pillar →Key studies: Determining Withdrawal Rates Using Historical Data; Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable.