How to Use the NestEggTrack Retirement Calculator

Step 1 — Find My Retirement Goal

What you do here: turn your picture of retirement into a number.

Picture the home you'll live in, the trips you'll take, the hobbies you'll keep, the family dinners you'll host. Then put a monthly dollar amount on each category, in today's dollars. The faded sample figures are based on U.S. Bureau of Labor Statistics average spending for households aged 65 and over (2024). Replace them with your own.

• Housing: Where will you live, and in what kind of home? A paid-off house, a rental, and a retirement community cost very different amounts, and so do high-cost and low-cost areas. Include mortgage or rent, property tax, insurance and upkeep. Research what your chosen area actually costs.
• Healthcare: Premiums, routine care and prescriptions. Ask relatives and friends in your target age range what they spend, and check current figures such as the 2026 Medicare Part B premiums and deductibles. For bigger medical costs, see Long-Term Care Costs and HSAs: The Retirement Account Hiding in Your Benefits Package.
• Daily Living: Groceries, transportation, utilities, phone, internet and personal care.
• Leisure & Travel: How often do you want to travel, and where? Estimate a monthly average.
• Other / Miscellaneous: A cushion for gifts, hobbies, a month that runs high, or a one-time event.

Then set four assumptions:

• Assumed Annual Inflation (%): The national average may not match what you experience where you live. Enter the rate you think is reasonable. The calculator uses it to grow your budget from today to your retirement year.
• Retirement Duration (years): How many years you'll draw on this money. It's uncomfortable to guess, but people are living longer. Common Retirement Planning Mistakes looks at how long retirements tend to last.
• Assumed Annual Investment Return in Retirement (%): How fast you expect your savings to grow while you're retired and drawing them down. This is before inflation. A higher rate means you need a smaller nest egg, and a lower rate means you need a larger one. Many people choose a lower, more conservative rate than they used while saving.
• Estimated Effective Tax Rate on Withdrawals (%): Your average tax rate on retirement withdrawals, not your top bracket. If you're unsure of the difference, read Understanding Tax Brackets.

Press Calculate My Goal. You'll see your budget in today's dollars, the same budget adjusted for inflation at your retirement year, the pre-tax yearly withdrawal needed to cover it after tax, and the nest egg you'd need at retirement.

Press Use This Goal ↓ to carry the number into Step 2. Next: Step 2 →

Step 2 — Am I on Track?

What you do here: check how much of your goal your current savings will reach by your retirement age.

• Target Nest Egg ($): Filled in when you press Use This Goal, or enter your own number.
• Current Retirement Savings ($): What you've saved so far across all retirement accounts. If you're just starting, it can be 0.
• Monthly Contribution ($): What you save each month for retirement in any account: 401(k), IRA, Roth IRA or a brokerage account. Don't include your employer's match here, because it has its own field. See 401(k) vs IRA and Your First Job's 401(k) Checklist.
• Employer Monthly Match ($): Your employer's match as a monthly dollar amount. You can also use it for any other regular monthly amount added to your savings.
• Expected Annual Investment Return (%): The sample is 7%. This rate is before inflation. It's a commonly used assumption for a stock-heavy portfolio, not a forecast. If you hold more bonds or cash, use a lower number. We suggest not entering more than 7%. To see how returns compound over decades, read The Power of Compound Interest.

Press Calculate. You'll see your projected savings, your progress toward the goal, and a status. If you're short, the calculator shows the shortfall and the monthly saving needed to reach your goal by your retirement age. If you have an employer match, it shows the personal contribution needed, on top of the match.

Next: Step 3 →

Step 3 — How Much Can You Withdraw in Retirement?

What you do here: estimate how much you could take out each year from the savings you've built.

• Starting Balance at Retirement ($): Filled in from Step 2's projected savings, or enter your own balance.
• Retirement Duration (years), Assumed Annual Inflation (%), Assumed Nominal Investment Return in Retirement (%) and Estimated Effective Tax Rate on Withdrawals (%): These four assumptions are shared with Step 1. If you change one here, it changes in Step 1 too, and the calculator will remind you to recheck your Step 1 goal. The sample return is 7%, before inflation. Many people choose a lower return than in Step 2, because they shift to a more conservative mix after retiring. We suggest not entering more than 7%.
• About the tax rate: It depends on where your money sits. Traditional 401(k) and IRA withdrawals are taxed as ordinary income, which pushes the rate up. Roth withdrawals are typically tax-free and can bring it down. See Roth vs Traditional IRA and Retirement Withdrawal Order.

Press Calculate My Withdrawal to see the yearly withdrawal before and after tax, with monthly amounts below, and the withdrawal rate.

Is this enough for the life you want? If the result doesn't match the life you picture, go back to Step 1. Break your spending into categories and see what that lifestyle would cost.