Compound Interest: Your savings grow over time as your returns generate additional returns. This calculator uses the compound interest formula: A = P(1 + r/n)^(nt), where P is your principal (current savings), r is your annual return rate, n is compounding frequency (monthly), and t is time in years.
Monthly Contributions: Regular contributions are added each month and immediately start earning returns. The calculator projects how these consistent deposits, combined with compound growth, build your retirement fund.
Retirement Readiness Score: We compare your projected savings to recommended benchmarks based on your desired retirement age. A score above 80% means you're "Ahead," 50-80% is "On Track," and below 50% suggests you may need to increase contributions or adjust your retirement timeline.
Inflation Impact: The advanced options include inflation adjustments to show your purchasing power in today's dollars, helping you understand the real value of your future savings.