Can I retire at age 40 with 2,500,000?

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 $2,500,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.8%
1 years$206,448$204,609$202,815$201,063$199,354$197,026
2 years$102,202$100,298$98,454$96,665$94,930$92,587
3 years$67,458$65,546$63,706$61,934$60,228$57,942
4 years$50,089$48,183$46,362$44,620$42,955$40,745
5 years$39,671$37,776$35,979$34,273$32,654$30,525
6 years$32,727$30,847$29,076$27,408$25,838$23,793
7 years$27,770$25,905$24,162$22,534$21,013$19,053
8 years$24,053$22,206$20,492$18,903$17,432$15,558
9 years$21,164$19,334$17,649$16,101$14,680$12,890
10 years$18,854$17,042$15,387$13,879$12,509$10,801
11 years$16,965$15,172$13,547$12,079$10,758$9,131
12 years$15,393$13,617$12,022$10,595$9,322$7,776
13 years$14,063$12,306$10,741$9,354$8,129$6,660
14 years$12,924$11,186$9,651$8,303$7,126$5,733
15 years$11,938$10,218$8,713$7,405$6,274$4,954
16 years$11,076$9,375$7,900$6,630$5,545$4,296
17 years$10,316$8,634$7,189$5,957$4,917$3,737
18 years$9,642$7,978$6,562$5,369$4,372$3,258
19 years$9,039$7,394$6,008$4,851$3,897$2,846
20 years$8,497$6,871$5,513$4,394$3,481$2,492
21 years$8,007$6,400$5,071$3,988$3,115$2,184
22 years$7,562$5,974$4,674$3,626$2,792$1,918
23 years$7,157$5,588$4,316$3,302$2,506$1,685
24 years$6,786$5,235$3,991$3,012$2,253$1,483
25 years$6,445$4,913$3,697$2,750$2,027$1,306
26 years$6,131$4,617$3,428$2,515$1,826$1,151
27 years$5,841$4,346$3,184$2,302$1,646$1,015
28 years$5,572$4,095$2,960$2,109$1,485$896
29 years$5,322$3,863$2,754$1,934$1,341$791
30 years$5,089$3,648$2,565$1,775$1,212$699
31 years$4,871$3,449$2,392$1,630$1,096$618
32 years$4,668$3,263$2,231$1,498$991$546
33 years$4,477$3,090$2,084$1,378$897$483
34 years$4,298$2,929$1,947$1,268$812$427
35 years$4,129$2,778$1,820$1,167$736$378
36 years$3,971$2,637$1,703$1,075$666$334
37 years$3,821$2,504$1,594$990$604$296
38 years$3,679$2,380$1,492$913$548$262
39 years$3,545$2,263$1,398$841$497$232
40 years$3,418$2,153$1,310$776$450$206
41 years$3,297$2,050$1,229$716$409$182
42 years$3,183$1,952$1,153$661$371$161
43 years$3,074$1,860$1,082$610$337$143
44 years$2,970$1,773$1,015$563$305$127
45 years$2,872$1,691$953$520$277$112
46 years$2,777$1,613$895$481$252$99
47 years$2,688$1,539$841$444$229$88
48 years$2,602$1,469$791$410$208$78
49 years$2,519$1,403$743$379$189$69
50 years$2,441$1,340$699$350$171$61

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,500,000, adding $3,281 every year, while hoping to spend $44,409 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: 77/8/15 Blend
39$2,500,000$2,500,000$2,500,000$2,500,000
40$2,758,384$2,625,884$2,587,134$2,961,738
41$2,992,489$2,707,302$2,626,553$3,177,758
42$3,248,983$2,791,220$2,665,803$3,408,662
43$3,530,105$2,877,716$2,704,833$3,660,648
44$3,838,318$2,966,866$2,743,586$3,935,807
45$4,176,334$3,058,750$2,782,005$4,236,437
46$4,547,144$3,153,452$2,820,025$4,565,073
47$4,954,038$3,251,057$2,857,581$4,924,504
48$5,400,642$3,351,651$2,894,603$5,317,803
49$5,890,951$3,455,325$2,931,015$5,748,357
50$6,429,363$3,562,172$2,966,740$6,219,893
51$7,020,726$3,672,286$3,001,694$6,736,520
52$7,670,379$3,785,766$3,035,789$7,302,762
53$8,384,202$3,902,714$3,068,932$7,923,605
54$9,168,676$4,023,232$3,101,027$8,604,541
55$10,030,939$4,147,428$3,131,969$9,351,620
56$10,978,855$4,275,412$3,161,650$10,171,507
57$12,021,088$4,407,298$3,189,956$11,071,547
58$13,167,184$4,543,201$3,216,765$12,059,831
59$14,427,661$4,683,241$3,241,950$13,145,272
60$15,814,105$4,827,542$3,265,378$14,337,695
61$17,339,283$4,976,231$3,286,907$15,647,920
62$19,017,261$5,129,439$3,306,390$17,087,871
63$20,863,539$5,287,298$3,323,672$18,670,688
64$22,895,192$5,449,948$3,338,587$20,410,847
65$25,131,037$5,617,530$3,350,964$22,324,298
66$27,591,804$5,790,191$3,360,623$24,428,619
67$30,300,338$5,968,080$3,367,374$26,743,176
68$33,281,809$6,151,352$3,371,017$29,289,310
69$36,563,951$6,340,166$3,371,344$32,090,535
70$40,177,325$6,534,685$3,368,134$35,172,764
71$44,155,603$6,735,076$3,361,159$38,564,548
72$48,535,893$6,941,513$3,350,175$42,297,351
73$53,359,079$7,154,172$3,334,931$46,405,841
74$58,670,215$7,373,236$3,315,161$50,928,222
75$64,518,944$7,598,892$3,290,587$55,906,593
76$70,959,972$7,831,333$3,260,916$61,387,343
77$78,053,577$8,070,756$3,225,845$67,421,592
78$85,866,184$8,317,366$3,185,054$74,065,671
79$94,470,988$8,571,370$3,138,206$81,381,655
80$103,948,646$8,832,984$3,084,953$89,437,949
81$114,388,035$9,102,428$3,024,926$98,309,931
82$125,887,096$9,379,928$2,957,743$108,080,667
83$138,553,753$9,665,718$2,883,000$118,841,693
84$152,506,933$9,960,035$2,800,278$130,693,879
85$167,877,690$10,263,126$2,709,137$143,748,381
86$184,810,438$10,575,243$2,609,116$158,127,692
87$203,464,316$10,896,644$2,499,736$173,966,795
88$224,014,692$11,227,595$2,380,492$191,414,440
89$246,654,812$11,568,368$2,250,860$210,634,549
90$271,597,628$11,919,244$2,110,289$231,807,757
91$299,077,809$12,280,510$1,958,207$255,133,125
92$329,353,951$12,652,460$1,794,012$280,830,016
93$362,711,020$13,035,397$1,617,078$309,140,164
94$399,463,045$13,429,631$1,426,750$340,329,959
95$439,956,073$13,835,481$1,222,344$374,692,958
96$484,571,447$14,253,274$1,003,147$412,552,662
97$533,729,394$14,683,344$768,412$454,265,565
98$587,892,999$15,126,034$517,360$500,224,521
99$647,572,572$15,581,698$249,179$550,862,454
100$713,330,469$16,050,695$0$606,656,442