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 Retirement Calculator
Retirement Formula: Savings per Year = (Desired savings - current savings) / Years until retirement

Note: This assumes that you are not earning interest on your savings. Positive returns will decrease the amount you need to save.

Retirement Definition
Use our free retirement calculator to help you make all of your financial plans needed in order to retire with the type of lifestyle that you want and deserve. Currently, only a minority of Americans plan for retirement the way that the should. Very few people save diligently or think about how much money they will need to retire comfortably. This online calculator can tell you exactly what you need to be saving so that you can plan your saving accordingly.
No two people desire the same lifestyle or retirement plan. This means that there is no set in stone way to plan for your retirement. This quick, free calculator will allow you to forge your own path to prosperity in your later years.

There are three inputs in the calculator:

1) Current Savings.

This is where you put any assets you currently hold. You can judge this however you like, but this can include the value of your home, the value of your cars, stock values, and of course your cash. Whether you want to include personal belongings is up to you, however. Let’s say you have 10,000 saved up.

2) Desired Retirement Savings.

This is where you will enter how much money you would like to have by the time that you retire. To arrive at this number you need to determine the amount of money you need to live at your desired lifestyle. Then you need to multiply that number by however many years you can reasonably expect to be alive after you retire. This number is your desired retirement savings.
As an example, let’s say you plan to retire at age 50. After this you calculate how much money you are likely to spend each year. This calculation varies from person to person, but you should look at how much you currently spend and make sure there won’t be anything extra you will want to spend later on. It is always better to overestimate than it is to underestimate. You finally arrive at \$50,000 per year. Assuming you live to the ripe old age of 85, that is \$1,750,000 that you need saved up in order to retire by age 50. Whatever number you arrive at, enter this amount into the second space.

3) Years Until Retirement.

This is how long you have until you get there. Let’s say you’re 20 years old. If you want to retire at age 50, you have 30 years left until retirement. Whatever this number is for you, put it in.
After you enter the values, simply click the calculate button. Using the numbers quoted above, you need to save \$58,000 a year to hit your goal. This financial calculator, however, does not take into account interest rates or investments, so it’s very possible to not need as much savings. This calculator should provide a good rough estimate, however, and aid you in planning your retirement!

How to Calculate Retirement
Let's be honest - sometimes the best retirement calculator is the one that is easy to use and doesn't require us to even know what the retirement formula is in the first place! But if you want to know the exact formula for calculating retirement then please check out the "Formula" box above.
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