4% Rule Retirement Planner
Calculate your retirement nest egg using the 4% rule, find the required monthly contribution, and visualize portfolio growth over time with a live chart.
Frequently Asked Questions
What is the 4% rule?
The 4% rule suggests that you can withdraw 4% of your portfolio each year in retirement without running out of money over a 30-year period. To find your target nest egg, divide your annual expenses by 0.04. For example, $60,000/year in expenses means you need $1,500,000 saved.
How is the required monthly contribution calculated?
The tool uses a binary search algorithm to find the smallest monthly contribution that, combined with your current balance and expected returns, reaches the target nest egg by your retirement date. Contributions and compounding are calculated monthly.
Should I enable the inflation adjustment?
Yes, if you want a more realistic target. With inflation enabled, your current annual expenses are projected forward to retirement. For example, $60,000/year today at 3% inflation over 25 years becomes about $125,000/year, raising the required nest egg significantly.
What return rate should I use?
The S&P 500 has historically returned about 10% nominally. After inflation, real returns are roughly 7%. If you enable the inflation toggle, use a nominal return (e.g., 10%). If inflation is off, use a real return (e.g., 7%) for a more conservative estimate.