Nest Egg Target Calculator

The most fundamental question in retirement planning is: how much do I need? The answer is rooted in the 4% safe withdrawal rate rule: multiply your desired annual spending by 25 to find your "nest egg target."

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 instead, which means multiplying by 33x or 28x respectively.