What will my savings be worth?
How long will my investment last?
What will it take for me to retire sooner than 65?
How to use the Early Retirement Calculator
Begin by determining your net income. This is the amount of money you make every year after all deductions (for example, taxes)
The next step is to determine your monthly expenses. The calculator assumes that your lifestyle won’t change significantly during your lifetime. This means that your expenses will be kept at the same level before and during your retirement.
Enter your initial investment. This is the amount of money you can put into your savings account today. Remember this should be savings that you won’t take out before you retire. The calculator has this value set to $0 by default, but if you have some savings already, you can include them in your calculations.
Monthly deposit – the calculator works this out automatically. It is the amount of money you would need to add to your savings every month
Choose the return on investment. It is the percentage interest rate of your account. The interest rate will depend on the type of account you are investing your savings in. By default, it is set to 5%.
You also have to decide on the withdrawal rate. This is the percentage of the sum accumulated on your account that you plan to withdraw on an annual basis. As a default, we have assumed this is 4%, a bit less than the default return on investment to cushion any fluctuations on the market that may cause temporary decreases in your interest rate.
After you decide all these values, the early retirement calculator will show you the required final balance of your account and the amount of time you will need to achieve this goal. If you start saving today, you will reach your goal in that timeframe.