Can I retire at age 40 with 2,240,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $2,240,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.7%
1 years$184,977$183,329$181,722$180,153$178,621$176,608
2 years$91,573$89,867$88,215$86,612$85,057$83,032
3 years$60,442$58,729$57,081$55,493$53,964$51,988
4 years$44,880$43,172$41,540$39,980$38,488$36,576
5 years$35,545$33,848$32,237$30,708$29,258$27,416
6 years$29,324$27,639$26,052$24,558$23,151$21,381
7 years$24,882$23,211$21,649$20,190$18,828$17,132
8 years$21,552$19,896$18,360$16,937$15,619$13,996
9 years$18,963$17,323$15,814$14,427$13,154$11,603
10 years$16,893$15,270$13,787$12,436$11,208$9,729
11 years$15,201$13,594$12,138$10,823$9,639$8,230
12 years$13,792$12,201$10,772$9,493$8,353$7,013
13 years$12,600$11,026$9,624$8,381$7,284$6,011
14 years$11,580$10,022$8,647$7,440$6,385$5,177
15 years$10,696$9,156$7,807$6,635$5,622$4,477
16 years$9,924$8,400$7,078$5,941$4,969$3,885
17 years$9,243$7,736$6,441$5,338$4,406$3,381
18 years$8,639$7,149$5,880$4,810$3,917$2,950
19 years$8,099$6,625$5,383$4,347$3,491$2,580
20 years$7,613$6,157$4,940$3,937$3,119$2,260
21 years$7,174$5,735$4,544$3,573$2,791$1,982
22 years$6,776$5,353$4,188$3,249$2,502$1,742
23 years$6,413$5,007$3,867$2,959$2,246$1,532
24 years$6,080$4,691$3,576$2,698$2,018$1,349
25 years$5,775$4,402$3,312$2,464$1,816$1,189
26 years$5,494$4,137$3,072$2,253$1,636$1,049
27 years$5,234$3,894$2,853$2,062$1,475$926
28 years$4,992$3,669$2,652$1,890$1,331$818
29 years$4,768$3,461$2,468$1,733$1,202$722
30 years$4,560$3,269$2,299$1,590$1,086$639
31 years$4,365$3,090$2,143$1,461$982$565
32 years$4,182$2,924$1,999$1,342$888$500
33 years$4,012$2,769$1,867$1,234$804$442
34 years$3,851$2,624$1,744$1,136$728$392
35 years$3,700$2,489$1,631$1,045$659$347
36 years$3,558$2,363$1,526$963$597$307
37 years$3,423$2,244$1,428$887$541$272
38 years$3,296$2,132$1,337$818$491$241
39 years$3,176$2,028$1,253$754$445$214
40 years$3,062$1,929$1,174$695$404$189
41 years$2,954$1,836$1,101$642$366$168
42 years$2,852$1,749$1,033$592$332$149
43 years$2,754$1,666$969$547$302$132
44 years$2,661$1,588$910$505$274$117
45 years$2,573$1,515$854$466$248$104
46 years$2,489$1,445$802$431$226$92
47 years$2,408$1,379$754$398$205$82
48 years$2,331$1,316$708$368$186$72
49 years$2,257$1,257$666$340$169$64
50 years$2,187$1,201$626$314$153$57

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,240,000, adding $5,602 every year, while hoping to spend $24,239 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 50/21/29 Blend
39$2,240,000$2,240,000$2,240,000$2,240,000
40$2,474,258$2,355,538$2,320,818$2,577,392
41$2,700,843$2,445,170$2,372,776$2,739,798
42$2,949,726$2,538,381$2,425,661$2,913,375
43$3,223,158$2,635,321$2,479,480$3,101,581
44$3,523,615$2,736,147$2,534,238$3,305,817
45$3,853,827$2,841,021$2,589,939$3,527,624
46$4,216,802$2,950,115$2,646,586$3,768,698
47$4,615,850$3,063,606$2,704,181$4,030,905
48$5,054,624$3,181,679$2,762,728$4,316,296
49$5,537,143$3,304,529$2,822,227$4,627,131
50$6,067,838$3,432,357$2,882,677$4,965,895
51$6,651,589$3,565,375$2,944,079$5,335,324
52$7,293,776$3,703,803$3,006,430$5,738,429
53$8,000,322$3,847,871$3,069,728$6,178,525
54$8,777,758$3,997,819$3,133,966$6,659,262
55$9,633,277$4,153,900$3,199,142$7,184,656
56$10,574,804$4,316,374$3,265,246$7,759,130
57$11,611,074$4,485,516$3,332,271$8,387,555
58$12,751,709$4,661,611$3,400,207$9,075,293
59$14,007,312$4,844,959$3,469,043$9,828,249
60$15,389,566$5,035,871$3,538,765$10,652,925
61$16,911,347$5,234,673$3,609,358$11,556,482
62$18,586,838$5,441,706$3,680,806$12,546,806
63$20,431,671$5,657,325$3,753,089$13,632,583
64$22,463,070$5,881,903$3,826,186$14,823,379
65$24,700,014$6,115,827$3,900,073$16,129,729
66$27,163,416$6,359,503$3,974,726$17,563,239
67$29,876,321$6,613,355$4,050,116$19,136,691
68$32,864,123$6,877,826$4,126,212$20,864,167
69$36,154,804$7,153,380$4,202,980$22,761,175
70$39,779,198$7,440,500$4,280,384$24,844,803
71$43,771,283$7,739,691$4,358,384$27,133,870
72$48,168,501$8,051,484$4,436,938$29,649,112
73$53,012,111$8,376,429$4,515,998$32,413,369
74$58,347,577$8,715,105$4,595,514$35,451,806
75$64,225,000$9,068,115$4,675,434$38,792,144
76$70,699,588$9,436,091$4,755,699$42,464,926
77$77,832,179$9,819,692$4,836,248$46,503,800
78$85,689,813$10,219,608$4,917,014$50,945,836
79$94,346,366$10,636,561$4,997,926$55,831,880
80$103,883,248$11,071,305$5,078,909$61,206,931
81$114,390,169$11,524,629$5,159,882$67,120,569
82$125,965,986$11,997,356$5,240,758$73,627,421
83$138,719,640$12,490,349$5,321,447$80,787,675
84$152,771,177$13,004,511$5,401,849$88,667,647
85$168,252,889$13,540,783$5,481,863$97,340,405
86$185,310,555$14,100,153$5,561,377$106,886,461
87$204,104,824$14,683,653$5,640,275$117,394,521
88$224,812,724$15,292,360$5,718,433$128,962,332
89$247,629,340$15,927,404$5,795,718$141,697,593
90$272,769,652$16,589,965$5,871,994$155,718,976
91$300,470,561$17,281,279$5,947,111$171,157,244
92$330,993,134$18,002,636$6,020,914$188,156,481
93$364,625,057$18,755,390$6,093,239$206,875,453
94$401,683,362$19,540,953$6,163,911$227,489,101
95$442,517,410$20,360,804$6,232,747$250,190,197
96$487,512,195$21,216,493$6,299,553$275,191,153
97$537,091,975$22,109,637$6,364,124$302,726,033
98$591,724,279$23,041,932$6,426,245$333,052,754
99$651,924,319$24,015,150$6,485,688$366,455,521
100$718,259,855$25,031,148$6,542,213$403,247,505