You can use this calculator to estimate how much you need to save every month to reach your goal ‘nest egg’ when you plan on retiring.
1. Enter your current age.
2. Enter the age you would like to retire.
3. Enter your current total retirement savings (add up all of your/your spouse’s accounts).
4. Enter your growth rate as the Annual Interest Rate (somewhere between 5-7% is probably best to stay conservative) – real rates could be higher or lower.
5. Your retirement savings goal. What is the amount you want to have saved when you retire?
6. Press the ‘Calc’ button.
The results will give you an an estimated monthly savings amount to reach your retirement ‘nest egg’ number. It will also provide the number of monthly contributions between now and your retirement age, how much you will have invested, how much your investments have grown, and an estimated total at retirement.
The ‘Savings Schedule’ will display a monthly and annual summary for your estimated savings and investment growth.