The concept
A retirement balance is not retirement income
A future balance model helps inspect the relationship between time, contributions and an assumed return.
It does not estimate spending needs, inflation-adjusted income, tax, fees, sequence risk or how long assets may last.
The same balance can be taxed very differently depending on the account it sits in. The traditional vs Roth 401(k) comparison sets out the difference between pre-tax contributions taxed on withdrawal and after-tax contributions that can come out tax-free, and the 401(k) vs IRA comparison covers how workplace and individual accounts differ. Cash kept for shorter-term needs usually sits outside these accounts; the high-yield savings vs money market comparison explains how those two cash options differ on insurance and access.
The method
How to calculate illustrative retirement balance
Current savings are compounded for the entered period. The future value of equal end-of-month contributions is calculated separately and added.
Current savings compound monthly; recurring contributions are modelled at each month-end.
Worked example
Retirement Value Calculator example
Starting with $50,000 and contributing $750 monthly for 25 years at an assumed 6% annual return produces an illustrative future balance.
This example explains the method. It does not recommend a financial action or predict an outcome.
Frequently asked
Retirement Value Calculator questions
Does this show whether I can retire?
No. It models a balance only.
Is inflation included?
No. Compare the result separately with an inflation assumption.
When are contributions assumed?
At the end of each month.