Is 7% a realistic long-term return assumption?

It is a commonly used long-run average for diversified stock-heavy portfolios, but actual results vary year to year and are not guaranteed. Consider running the numbers at a lower rate as well to see a more conservative outcome.

Does this account for employer matching?

Not automatically. If your employer matches contributions, add that match to your monthly contribution amount to include it in the projection.

Does this include Social Security or pensions?

No, this only projects the personal savings and contributions you enter. Other retirement income sources should be considered separately.

Retirement

Retirement Savings Calculator

Project the balance you could have at retirement based on your current age, current savings, monthly contributions, and an assumed average annual return.

Retirement Savings

Total you'll contribute

Growth from investment returns

Years until retirement

How it works

Formula & methodology

This calculator projects two growth streams to your target retirement age: your current balance compounding monthly, and your ongoing monthly contributions compounding as an annuity. The two are added together for your projected balance at retirement.

Source: Investor.gov: Compound Interest Calculator (U.S. SEC)

Example

Worked example

Example: starting at age 30 with $15,000 saved, contributing $400/month, and retiring at 65 with a 7% average annual return projects to roughly $893,000 at retirement, of which about $183,000 came from contributions and the rest from investment growth.

FAQ

Frequently asked questions

Is 7% a realistic long-term return assumption?: It is a commonly used long-run average for diversified stock-heavy portfolios, but actual results vary year to year and are not guaranteed. Consider running the numbers at a lower rate as well to see a more conservative outcome.
Does this account for employer matching?: Not automatically. If your employer matches contributions, add that match to your monthly contribution amount to include it in the projection.
Does this include Social Security or pensions?: No, this only projects the personal savings and contributions you enter. Other retirement income sources should be considered separately.

Tips

Practical tips

Increase your contribution rate by 1% every time you get a raise — you'll barely notice the difference in take-home pay, but it meaningfully changes your projected balance.
Always capture a full employer 401(k) match if offered — it is an immediate, guaranteed return that no market investment can match.
Re-run this projection with a more conservative return (5-6%) periodically as a stress test, so your plan doesn't depend entirely on optimistic market assumptions.

Results are estimates for general informational purposes only and do not constitute financial, tax, or legal advice. Always confirm important figures with a qualified professional or your lender before making a financial decision.