Home Categories Popular About

Retirement Tool





How the Calculator Works

The calculator uses compound interest plus monthly contributions:

Future Value = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) − 1) / (r/n)]
  

Where:
• P = current savings
• PMT = monthly contribution
• r = annual return rate (decimal)
• n = 12 (monthly compounding)
• t = years until retirement

Example

Current Savings = 10,000  
Monthly Contribution = 400  
Return Rate = 7%  
Years = 25  

Possible Output:
Future Value = 395,822.44