Nest Egg Calculator
Calculate how large a nest egg you need to sustain your desired retirement income.
Calculate how large a nest egg you need to sustain your desired retirement income.
Total monthly income you want in retirement.
Any guaranteed monthly pension income.
How many years your retirement is expected to last.
Expected portfolio return during retirement.
Expected average annual inflation rate.
r_real = (annual return − inflation rate). The nest egg represents the lump sum needed today to fund your income gap for the full retirement duration, accounting for inflation-adjusted returns.
Nest Egg = Annual Gap × [(1 − (1 + r_real)^−n) / r_real]A common rule of thumb is to withdraw no more than 4% of your portfolio per year. This means you need 25× your annual spending gap in savings.
Even $1,500/month in Social Security reduces a $5,000/month income need by 30%, dramatically lowering the required nest egg.
At 3% inflation, $5,000/month today will feel like $3,700/month in 10 years. Building inflation margin into your plan is essential for a 20–30 year retirement.
Uses the present value of annuity formula adjusted with the real rate of return (nominal return minus inflation). Survival years are simulated month-by-month using nominal return and nominal withdrawal.