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Retirement Projection
Plan when your portfolio can sustain spending in real terms.
Required capital (stable principal)
$1,832,766
Total invested
$1,126,000
Total from passive income
$715,985
Result
Estimated time to reach readiness threshold
22 years and 5 months (269 months)
Readiness threshold reached
How to Use This Retirement Projection Calculator
This planning tool helps you map out your path to financial independence. By analyzing savings, expenses, and returns, it projects when your portfolio can sustain your lifestyle in real terms.
1. Choose Your Planning Mode
- Time to retirement readiness: Calculates exactly when you will have enough money based on current savings.
- Withdrawal at target time: Evaluates if your projected net worth is enough to support you starting at a future date.
2. Input Your Core Financials
Enter your balance, income, and expenses. The tool uses net savings and the real interest rate (return minus inflation) to model growth.
3. Select a Withdrawal Strategy
- Stable Principal: A conservative approach where you live entirely off returns without touching initial capital.
- Allow Principal Drawdown: Assumes you spend down your capital over your retirement years (finite annuity).
Benchmarks
- Real Rate (less than 5%): Don't use nominal rates, account for inflation and taxes. Real purchasing power is the only metric that matters.
- The 4% Rule: A standard benchmark for sustainable annual withdrawals over long horizons.
Common Pitfalls
- Over-Optimism: Assuming real returns above 6% ignores market volatility and long-term cycles.
- Safety Buffer: Retirement costs (health/travel) often rise. Add a 20% margin to your expenses.
The Mathematics
Perpetuity (Stable Principal)
K* =
Er
Finite Annuity (Principal Drawdown)
W = K ·
r(1 + r)ⁿ(1 + r)ⁿ - 1
Variable Legend
- K* = Required Capital (Target)
- E = Expected Expenses
- r = Real Interest Rate
- W = Withdrawal Amount
- K = Initial Capital Acquired
- n = Number of Periods (Months/Years)