Retirement Nest Egg Calculator
How much do you need saved to retire? Calculate your nest egg number - the amount that lets you stop working and live comfortably.
Calculate Your Nest EggFree calculator. No signup required.
What is a Retirement Nest Egg?
Your retirement nest egg is the pile of money that will fund your life after you stop working. It replaces your paycheck and covers everything from groceries to healthcare to travel.
The size of your nest egg determines what kind of retirement you can have. Too small and you will struggle. The right size means financial security and peace of mind.
Financial Security
A proper nest egg means you won't run out of money or become a burden on family.
Self-Sustaining
Investment returns replenish what you withdraw, making your money last indefinitely.
Freedom & Flexibility
The right nest egg means retiring on your timeline, not when you have to.
How to Calculate Your Nest Egg
THE NEST EGG FORMULA
Annual Expenses × 25 = Nest Egg
Based on the 4% rule: withdraw 4% yearly and your money should last 30+ years.
The math is straightforward: figure out how much you need each year in retirement, then multiply by 25. This gives you a nest egg large enough to withdraw 4% annually without depleting it.
Why does this work? Historically, a diversified portfolio returns about 7% per year on average. If you withdraw 4% and get 7% returns, your nest egg actually grows by 3% annually - keeping pace with inflation.
Quick Example
Step 1: Estimate retirement expenses → $50,000/year
Step 2: Multiply by 25 → $50,000 × 25
Your nest egg: $1,250,000
With $1.25M invested, you can withdraw $50k/year and your money should last 30+ years.
Nest Egg by Lifestyle
Your expenses determine your target. Here is what different retirement lifestyles require:
| Lifestyle | Monthly | Annual | Nest Egg Needed |
|---|---|---|---|
| Minimal | $2,500 | $30,000 | $750K |
| Modest | $3,333 | $40,000 | $1.00M |
| Comfortable | $4,167 | $50,000 | $1.25M |
| Upper Middle | $5,833 | $70,000 | $1.75M |
| Affluent | $8,333 | $100,000 | $2.50M |
Based on 4% withdrawal rate. Your actual needs may vary based on healthcare costs, location, and lifestyle choices.
Factors That Affect Your Nest Egg
Healthcare Costs
Medicare doesn't cover everything. Budget $5-10k/year for out-of-pocket healthcare expenses, more if retiring before 65.
Increases nest egg by $125-250K
Social Security
This reduces how much your nest egg needs to provide. Average benefit is ~$20k/year per person.
Reduces nest egg by $500K per recipient
Housing
A paid-off house significantly reduces expenses. Rent or mortgage payments add substantially to your needed nest egg.
Paid-off home can reduce nest egg by $300-500K
Retirement Age
Retiring early means more years to fund and potentially less Social Security. Each year earlier adds to your requirement.
Early retirement: use 3-3.5% withdrawal rate
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Frequently Asked Questions
What is a retirement nest egg?
A retirement nest egg is the total amount of savings and investments you need to fund your retirement. It's the money that will replace your paycheck once you stop working, allowing you to maintain your lifestyle.
How much should my retirement nest egg be?
A common rule is 25 times your annual expenses. If you spend $50,000/year, you need $1.25 million. This is based on the 4% safe withdrawal rate - withdrawing 4% annually should make your money last 30+ years.
Is $500,000 enough to retire on?
At a 4% withdrawal rate, $500,000 provides $20,000/year. This works if your expenses are low (under $20k) or you have other income like Social Security or a pension. Most people need $1-2 million for a comfortable retirement.
How do I calculate my nest egg number?
Estimate your annual retirement expenses, then multiply by 25. This accounts for a 4% safe withdrawal rate. For example: $60,000/year × 25 = $1.5 million nest egg needed.
Does my nest egg need to cover Social Security?
No. Your nest egg covers the gap between your expenses and guaranteed income. If you need $50k/year and expect $20k from Social Security, your nest egg only needs to provide $30k/year ($750,000 total).
What if I want to retire early?
Early retirement (before Social Security kicks in) means your nest egg works harder for longer. Consider using a 3.5% or 3% withdrawal rate (multiplier of 28-33x instead of 25x) for extra safety margin.
What is your nest egg number?
Use our free calculator to find out exactly how much you need for retirement.
Calculate Your Nest EggNot financial advice. This calculator is for educational purposes only and does not constitute financial, tax, or investment advice. Results are estimates based on the inputs you provide and historical data. Consult a qualified financial advisor for personalized guidance. Read our editorial guidelines.