How to Use the Finhabits Retirement Calculator
This tool helps you translate your current earnings into a concrete savings goal. By filling in three simple fields, you can see approximately how much you need to save to keep living the life you love.
This calculator is for illustrative purposes only and provides estimates based on the information you provide and certain assumptions about the future. It does not constitute financial advice, a guarantee of future performance, or an offer to buy or sell securities. Actual retirement needs will vary based on inflation, market performance, tax laws, and individual circumstances. You should consider consulting a qualified financial advisor before making any investment decisions.
Understanding Your Results
Once you enter your data, the calculator provides two key estimates. Here is how to interpret them using a hypothetical scenario:
1. Annual spend in retirement
This is your estimated future “salary”—the amount you will likely need to withdraw from your account every year to pay for bills, food, and fun.
For example: If you currently earn $90,000 and choose to “Maintain” your lifestyle, the calculator might estimate an annual spend of $72,000. This covers your average expenses while accounting for the fact that you are no longer contributing to savings.
2. Total retirement number
This is your “Nest Egg” goal. It is the approximate lump sum you need to have invested by the day you retire to support your annual spending for the duration you selected.
For example: To generate that $72,000 “salary” for 30 years, the calculator might show a Total Retirement Number of $2,000,000. This is the target you are working toward building.
A Note on Inflation (Current Dollar Value)
You will notice these figures are displayed in current dollar value. This means we show your targets in today’s money. This makes it easier for you to understand your goal based on your current purchasing power, rather than trying to guess what prices will look like decades from now.
Understanding Your Lifestyle Options
When you choose a lifestyle goal, our calculator uses specific percentages of your current income to estimate your future budget. These assumptions act as a starting point to help you plan realistically.
Maintain my current lifestyle
(approx. 80% of current income)
This is the standard “rule of thumb” for most retirees.
Why 80%?
Some expenses disappear — you will no longer have work-related costs like commuting or professional wardrobes, and you will no longer need to set money aside for retirement.
Increase my spend
(approx. 100% of current income)
Select this if you envision a retirement that is more active or expensive than your current life.
Why 100%?
If you plan to travel extensively, pursue expensive hobbies, or anticipate higher healthcare costs, you may need to replace your entire current salary to cover these new adventures.
Decrease my spend
(approx. 60% of current income)
Select this if you plan to simplify significantly.
Why 60%?
This assumes major structural changes to your budget, such as downsizing your home, moving to a location with a lower cost of living, or having a completely paid-off mortgage.
Why do we recommend a minimum of $50,000?
Regardless of which percentage you choose, our calculator suggests a minimum annual retirement spend of $50,000.
Even if you plan to be frugal, fixed costs in the US—such as healthcare, insurance, food, and housing repairs—often add up to this baseline. We apply this floor to help ensure your plan is safe and realistic.