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⚙ Calculator coming soon — use the information below to calculate manually.
The most widely used retirement planning framework is the 4% rule, developed from the Trinity Study. It states that you can safely withdraw 4% of your portfolio per year in retirement without running out of money over 30 years. This means your retirement number = annual expenses × 25.
| Monthly Expenses in Retirement | Annual Expenses | Retirement Number (25x) |
|---|---|---|
| $3,000 | $36,000 | $900,000 |
| $5,000 | $60,000 | $1,500,000 |
| $7,000 | $84,000 | $2,100,000 |
| $10,000 | $120,000 | $3,000,000 |
The Trinity Study analyzed every 30-year retirement period from 1926 to 2017 using historical US stock and bond returns. A portfolio of 60% stocks / 40% bonds with 4% annual withdrawals succeeded in over 95% of all historical periods — including the Great Depression, World War II, the 1970s inflation crisis, and the 2008 crash. The 4% withdrawal grows with inflation each year.
If you will receive Social Security, subtract that income from your needed annual withdrawal. Example: you need $60,000/year. Social Security pays $24,000/year. Your portfolio only needs to cover $36,000/year. Retirement number = $36,000 × 25 = $900,000 instead of $1,500,000. This is why maximizing Social Security by delaying to age 70 is one of the highest-value retirement decisions.
For long-term retirement projections, most financial planners use 7–8% nominal returns (historical US stock market average minus fees). Adjusted for 3% inflation, the real return is approximately 4–5%. Use 7% for general planning and stress-test at 5% to see your worst-case scenario.
Use this calculator as a starting point, not a final answer. Run three scenarios: pessimistic (lower returns, higher costs, worst-case tax rates), base case (your expected scenario), and optimistic (favorable conditions). The range between these three scenarios tells you how much uncertainty surrounds your plan and how much buffer you need.
Once you have your numbers, cross-reference them with complementary calculators. A mortgage payment should be checked against your overall budget and DTI ratio. A retirement projection should account for Social Security income, potential pension, and healthcare costs in retirement. Tax calculations should be checked against available deductions and credits you may qualify for. No single calculator captures everything.
Where you hold investments matters as much as what you hold. High-growth assets belong in Roth accounts where growth is tax-free. Income-producing assets like bonds belong in traditional 401(k) or IRA where taxes are deferred. Tax-managed index funds belong in taxable brokerage where you can harvest losses. This asset location strategy adds 0.2-0.4% annually to after-tax returns without changing your investments at all.
The lifetime value of proper tax planning for a median American household is approximately $150,000-300,000 in additional wealth at retirement — the difference between tax-smart and tax-naive investment management over 30 years. Most of this benefit comes from three decisions made once: choosing the right account types, maximizing employer match, and selecting low-cost index funds.