Nest Egg Calculator
Calculate how large a nest egg you need to sustain your desired retirement income.
Before you calculate
Uses an approximate real return and smooth withdrawals. Longevity, changing expenses, taxes and poor early investment returns can alter required savings.
Nest Egg Calculation
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]Example Scenarios
The 4% Withdrawal Rule
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.
Social Security Reduces the Burden
Even $1,500/month in Social Security reduces a $5,000/month income need by 30%, dramatically lowering the required nest egg.
Inflation Erodes Purchasing Power
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.
Methodology & Assumptions
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.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.