Retirement Calculator (Ramsey-Style 12%/4%)
Project your retirement nest egg and income using the widely discussed 12% growth and 4% withdrawal assumptions — both editable.
About the 12% / 4% assumptions: The 12% growth and 4% withdrawal figures are commonly discussed assumptions popularized in personal-finance media — they are not guaranteed or predicted returns. Real long-run stock returns have averaged less after inflation, and many advisers plan with 6–8%. Both rates are editable; treat the result as an illustration, not a promise, and consider speaking with a fiduciary financial adviser.
This calculator grows your current savings and monthly contributions at an assumed annual return, then applies a withdrawal rate to the projected nest egg to estimate retirement income. The popular 'Ramsey-style' version uses 12% growth and a 4% withdrawal rate, but both are assumptions you can and should adjust.
⚠️ Double-check important results. This is an educational estimate, not professional advice — and where it uses a rate, bracket or fee, those change over time. Verify anything you'll rely on, especially in legal, financial, tax or medical matters, and read our full disclaimer. Think a result is wrong? Tell us so we can fix it.
How to Use This Calculator
Enter your current retirement savings, how much you contribute each month, and the number of years until you retire. Then set the assumed annual growth rate and the withdrawal rate. The tool defaults to the widely discussed 12% growth and 4% withdrawal figures, but you should try more conservative growth rates too — 6% to 8% is common in professional planning.
The result is your projected nest egg at retirement and the annual and monthly income a 4% withdrawal would provide from it.
How the Calculation Works
Your current savings grow by compounding at the monthly growth rate over every month until retirement. Your monthly contributions form an annuity, each one compounding from the month you make it, which the future-value-of-an-annuity formula sums up.
Adding the two gives the projected nest egg. Multiplying that by the withdrawal rate estimates the yearly income you could draw. The 4% rule comes from research suggesting a 4% first-year withdrawal, adjusted for inflation, has historically lasted about 30 years.
nest egg = current × (1+g)ⁿ + monthly × ((1+g)ⁿ − 1) ÷ g
Worked Example
Starting with $10,000, adding $500 a month for 30 years at 12% growth: the current savings grow to about $359,500, and the contributions grow to about $1,747,500, for a nest egg near $2.11 million.
A 4% withdrawal on that is roughly $84,300 a year, or about $7,000 a month. At a more cautious 8% growth, the same inputs project a much smaller nest egg — which is why testing lower rates matters.
What the Result Means and Its Limits
The nest egg is a projection, not a promise. It assumes a steady return every year, which never happens in reality — markets rise and fall, and a bad sequence of returns early in retirement can hurt more than the average suggests.
It also ignores inflation, taxes and fees, all of which reduce what your money actually buys. Use the figure to compare scenarios and to see the power of consistent contributions, not as a guaranteed outcome. For a real plan, work with a fiduciary adviser.
Assumptions and Limitations
- 12% growth and 4% withdrawal are commonly discussed assumptions, not guarantees
- Assumes a constant annual return — real returns vary year to year
- Ignores inflation, taxes and investment fees
- Does not model sequence-of-returns risk in retirement
📊 Source & data. Formula and default values reference Dave Ramsey — 12% Investment Return / 4% Withdrawal Rule. Last verified 2026-10-29. Rates, brackets and fees change over time — all editable fields accept your own current values.
When to Use a Retirement Calculator
Anyone planning for the future uses this to project a nest egg and the income it could produce, using a growth-and-withdrawal method popularized by financial commentators. Run it to check whether your current savings rate is on track, test different contribution levels, or picture the income the 4% rule might support. It turns a distant goal into concrete numbers you can adjust while there is still time to act.
Related Calculators
Break-Even Calculator
Find how many units you must sell to cover fixed and variable costs.
Open calculator →Doubling Time Calculator
Find how long money or anything takes to double at a growth rate.
Open calculator →Stock Profit Calculator
Work out profit and return on a stock trade, including commissions.
Open calculator →Barista FIRE Calculator
The portfolio you need when part-time income covers part of your costs.
Open calculator →Frequently Asked Questions
Is 12% a realistic retirement growth rate?
It is on the optimistic end. The US stock market's long-run average is often cited near 10% before inflation and lower after it, so many planners use 6–8%. The rate is editable — test a conservative figure too.
What is the 4% rule?
It is a guideline that withdrawing 4% of your nest egg in the first year of retirement, then adjusting for inflation, has historically lasted about 30 years. It is a rule of thumb, not a guarantee.
Does this calculator account for inflation?
No. The projection is in future dollars and does not adjust for inflation, taxes or fees, all of which reduce your real spending power. Treat the result as a gross illustration.
Why should I lower the growth rate?
Because a 12% assumption can dramatically overstate your nest egg. Running a more conservative 6–8% shows a more cautious outcome and helps you avoid under-saving based on an optimistic number.
Is this an official Dave Ramsey product?
No. It is an independent calculator that uses the 12%/4% method commonly discussed in personal-finance media. It is not affiliated with or endorsed by Dave Ramsey or any brand.
Looking for a different calculator?
CalculatorPlus has free tools across finance, construction, math, health and more — each one showing the formula and a worked example.