About the Retirement Contribution Calculator
A target in today's dollars is converted into future dollars using your inflation assumption, so the goal keeps the same purchasing power by the time you retire.
The difference between the required contribution and your current contribution is your contribution gap — a practical number to plan around.
How It Works
First the calculator inflates your target to retirement-age dollars. Then it projects your current savings forward and solves for the level monthly contribution that closes the remaining gap at your expected return.
It also projects your balance if you keep contributing your current monthly amount, so you can see the shortfall or surplus.
Formula
Example
A 35-year-old with $50,000 saved wants the equivalent of $1,000,000 in today's dollars at 65, assumes a 7% return and 3% inflation, and saves $500 a month today.
Inputs
- Target (today's $)
- $1,000,000
- Years
- 30
- Return / inflation
- 7% / 3%
Results
- Target in future dollars
- $2,427,262.47
- Required monthly
- $1,750.09
- Monthly gap
- $1,250.09
Assumptions & Limitations
- Constant return and inflation every year.
- Level monthly contributions made at the end of each month; no increases over time.
- Not included: employer matches, taxes, fees, IRS contribution limits, Social Security, and pensions.
Understanding Your Results
- Required Monthly Contribution: The amount to save each month to reach the inflation-adjusted target.
- Monthly Contribution Gap: How much more per month you would need beyond your current contribution.
- Projected Balance: Where your current savings plan is projected to land.