A more detailed retirement savings estimate that includes both investment returns and inflation during your retirement itself.
Unlike the simple 4%-rule estimate, this models withdrawals that grow with inflation each year, funded by a corpus that keeps earning a return.
Real rate: (1 + return) ÷ (1 + inflation) − 1
Corpus: Present value of a growing annuity at the real rate
Why is this more accurate than the 4% rule?
The 4% rule uses one fixed percentage, no matter what your own return and inflation guesses are. This calculator uses both of your own numbers, to give a result made just for you.