Retirement Savings Calculator
Visualize the power of compound interest and map out your financial future.
Current Age
Retirement Age
Current Savings
$
Monthly Contribution
$
Expected Annual Return
%
⚠️ Retirement age must be greater than your current age.
The Magic of Compound Interest
Albert Einstein is reputed to have called compound interest the "eighth wonder of the world," and for good reason. It is the core mechanism behind building wealth for retirement.
- How it works: Compound interest is the interest you earn on both your original money and on the interest you keep accumulating. Over decades, this creates an exponential snowball effect.
- Time is your best asset: Because the growth is exponential, starting to save at age 25 rather than 35 can drastically increase your final nest egg, even if you contribute less money overall!
- Expected Return: Historically, the stock market (e.g., S&P 500) has returned an average of 10% per year. However, inflation reduces purchasing power by about 2-3% per year. Using an "inflation-adjusted" return of 6% to 7% gives you a better idea of what your money will actually be worth in today's dollars.