Calculator

Nest Egg Target Calculator

Estimate how much you need to save for retirement based on your desired annual spending using the 25x rule.

Nest Egg Target Calculator

How much do you need saved before you can retire?

Estimate what you'll spend per year after retiring, including housing, healthcare, food, and travel.

Most advisors suggest planning for 70–80% of your pre-retirement income in retirement.

Target Nest Egg
$1,500,000
Annual retirement spending$60,000 /yr
Safe monthly withdrawal$5,000 /mo
Withdrawal rate used4% (25x rule)

How the 25x Rule Works

If you expect to spend $60,000 a year in retirement, your target portfolio is $60,000 × 25 = $1,500,000. The logic: at a 4% withdrawal rate, a $1,500,000 portfolio generates $60,000 per year, and historical data shows this portfolio should last at least 30 years.

What to Include in Your Annual Spending Estimate

  • Housing (mortgage/rent, property taxes, maintenance)
  • Healthcare premiums, copays, and out-of-pocket costs
  • Food, utilities, transportation
  • Travel, hobbies, and entertainment
  • Income taxes on withdrawals from Traditional 401(k)/IRA

Adjusting for Social Security and Pension Income

If you expect $24,000 per year from Social Security, you only need your portfolio to cover the remaining gap. Subtract your guaranteed income from your target spending before applying the 25x rule.

Example: $60,000 spending − $24,000 Social Security = $36,000 gap × 25 = $900,000 needed.

Early Retirement Adjustment

The 4% rule assumes a 30-year retirement. If you plan to retire early (before age 55), use a 3% or 3.5% withdrawal rate, meaning multiply by 33x or 28x respectively.

Use the Interactive Calculator

Our interactive tool lets you adjust spending, Social Security, and investment returns in real time.

Open Interactive Calculator