How the Retirement Projection Works
The projection grows your current savings monthly and adds each monthly contribution at the end of the month. It then shows the nominal future balance and an inflation-adjusted estimate expressed in today’s purchasing power.
Formula and method
Monthly rate = (1 + annual return)^(1/12) − 1. Future value = starting balance × (1 + monthly rate)^months + monthly contribution × [((1 + monthly rate)^months − 1) ÷ monthly rate]. The zero-rate case uses contributions × months.
Tips for better estimates
Try conservative, middle, and optimistic return assumptions rather than relying on one forecast. Contributions are assumed to stay constant and occur at month-end.
Important limitations
This is an educational projection, not investment advice or a guaranteed return. It excludes fees, taxes, market volatility, contribution increases, employer matches, and withdrawals. Actual retirement outcomes can be materially different.