How it works
Your projected balance is the future value of your current savings plus your future contributions, compounded monthly until retirement:
FV = B(1 + i)N + PMT × [ ((1 + i)N − 1) / i ]
- B = current balance · PMT = monthly contribution
- i = monthly return (annual ÷ 12) · N = months until retirement
The estimated retirement income uses the "4% rule": about 4% of the balance per year, shown here per month.
Worked example
Age 30 retiring at 65, $25,000 saved, $500/month at 7%:
- Projected balance ≈ $1,188,000
- Est. retirement income ≈ $3,960/month