Explanation
Retirement savings projection
This projection asks what a starting balance and regular annual contributions could grow to. It does not determine whether that balance is enough to retire or guarantee investment performance.
Choose the question and enter values
Enter today’s retirement balance, the same annual contribution, a constant growth assumption, and the years remaining. Contributions are added at each year’s end.
Starting from B, repeat t times: balance ← balance × (1 + R/100) + C.
| B | Current savings (USD) |
|---|---|
| C | Yearly contribution (USD) |
| R | Annual return |
| t | Years to retirement |
A decade of contributions without growth
| Current savings | 10,000 |
|---|---|
| Yearly contribution | 5,000 |
| Annual return | 0 |
| Years to retirement | 10 |
| Result | $60,000 |
Start with $10,000. Each year multiply by (1 + 0/100), then add $5,000; repeat 10 times. Savings plus contributions = $60,000. Projected balance rounded once to cents = $60,000.
1 year at 10%
| Current savings | 1,000 |
|---|---|
| Yearly contribution | 100 |
| Annual return | 10 |
| Years to retirement | 1 |
| Result | $1,200 |
Start with $1,000. Each year multiply by (1 + 10/100), then add $100; repeat 1 times. Savings plus contributions = $1,100. Projected balance rounded once to cents = $1,200.
2 annual contributions at 10%
| Current savings | 1,000 |
|---|---|
| Yearly contribution | 100 |
| Annual return | 10 |
| Years to retirement | 2 |
| Result | $1,420 |
Start with $1,000. Each year multiply by (1 + 10/100), then add $100; repeat 2 times. Savings plus contributions = $1,200. Projected balance rounded once to cents = $1,420.
Diagram of this result
A bar splits the projected balance into current savings, total contributions and investment growth from the same projection.
The three parts and the projected balance are listed as exact dollar amounts beside the bar.
Common mistakes
A nominal future balance is not today’s purchasing power. Contributions at the start of a year would grow longer. Do not interpret a constant growth scenario as guaranteed returns.
Assumptions and limits
USD, nonnegative constant annual growth from 0% to 100%, 1–100 years, and year-end contributions. Fees, taxes, inflation, contribution limits, withdrawals and market volatility are excluded. Educational estimates only, not financial, tax or investment advice.
Can I use this as a retirement income plan?
No. The result is only an accumulation scenario. Income planning needs spending, life expectancy, inflation, taxes and uncertain investment returns.
Method and references
The projection repeats one year of compound growth followed by a year-end contribution. Investor.gov explains compounding and offers related tools at https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator . The examples above are independent fixtures for this method.