Saving Toward a Retirement Target
This calculator works backward from the balance you want at retirement. It first compounds your existing savings, then calculates the regular deposits needed to grow the remaining gap to your target. You can use the monthly result for payroll or automatic transfers and the annual result for a yearly contribution plan.
The calculation assumes a constant average return and regular end-of-period contributions. Markets do not move in a straight line, so a target that looks reachable under a 6% average return can still be missed if poor returns arrive near retirement. Re-run the calculation with a lower return and a higher target to create a margin of safety.
The result also excludes taxes, account fees, employer matches, and contribution limits. Add employer contributions to your own savings plan before comparing it with the displayed required amount.
How to Calculate Retirement Savings
Step One: Count the years until retirement
Subtract your current age from your planned retirement age.
years = retirementAge - currentAge
67 - 35 = 32 years
Step Two: Grow current savings
Compound the balance you already have over the full saving period.
future value of current savings = currentSavings × (1 + investmentReturn / 100)^years
$30,000 × 1.06^32 = $194,154
Step Three: Find the remaining gap
Subtract the future value of existing savings from your target.
remaining gap = targetBalance - future value of current savings
$600,000 - $194,154 = $405,846
Step Four: Convert the gap into monthly savings
Use the future-value factor for monthly end-of-period deposits.
monthly savings = remaining gap × monthly return / ((1 + monthly return)^months - 1)
$405,846 × 0.005 / (1.005^384 - 1) = $327.34 per month