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%16.7%
1 years$206,448$204,609$202,815$201,063$199,354$193,905
2 years$102,202$100,298$98,454$96,665$94,930$89,481
3 years$67,458$65,546$63,706$61,934$60,228$54,948
4 years$50,089$48,183$46,362$44,620$42,955$37,885
5 years$39,671$37,776$35,979$34,273$32,654$27,808
6 years$32,727$30,847$29,076$27,408$25,838$21,221
7 years$27,770$25,905$24,162$22,534$21,013$16,625
8 years$24,053$22,206$20,492$18,903$17,432$13,271
9 years$21,164$19,334$17,649$16,101$14,680$10,742
10 years$18,854$17,042$15,387$13,879$12,509$8,788
11 years$16,965$15,172$13,547$12,079$10,758$7,249
12 years$15,393$13,617$12,022$10,595$9,322$6,019
13 years$14,063$12,306$10,741$9,354$8,129$5,024
14 years$12,924$11,186$9,651$8,303$7,126$4,211
15 years$11,938$10,218$8,713$7,405$6,274$3,543
16 years$11,076$9,375$7,900$6,630$5,545$2,989
17 years$10,316$8,634$7,189$5,957$4,917$2,528
18 years$9,642$7,978$6,562$5,369$4,372$2,142
19 years$9,039$7,394$6,008$4,851$3,897$1,818
20 years$8,497$6,871$5,513$4,394$3,481$1,546
21 years$8,007$6,400$5,071$3,988$3,115$1,316
22 years$7,562$5,974$4,674$3,626$2,792$1,121
23 years$7,157$5,588$4,316$3,302$2,506$956
24 years$6,786$5,235$3,991$3,012$2,253$815
25 years$6,445$4,913$3,697$2,750$2,027$696
26 years$6,131$4,617$3,428$2,515$1,826$595
27 years$5,841$4,346$3,184$2,302$1,646$508
28 years$5,572$4,095$2,960$2,109$1,485$435
29 years$5,322$3,863$2,754$1,934$1,341$372
30 years$5,089$3,648$2,565$1,775$1,212$318
31 years$4,871$3,449$2,392$1,630$1,096$272
32 years$4,668$3,263$2,231$1,498$991$233
33 years$4,477$3,090$2,084$1,378$897$199
34 years$4,298$2,929$1,947$1,268$812$171
35 years$4,129$2,778$1,820$1,167$736$146
36 years$3,971$2,637$1,703$1,075$666$125
37 years$3,821$2,504$1,594$990$604$107
38 years$3,679$2,380$1,492$913$548$92
39 years$3,545$2,263$1,398$841$497$79
40 years$3,418$2,153$1,310$776$450$67
41 years$3,297$2,050$1,229$716$409$58
42 years$3,183$1,952$1,153$661$371$49
43 years$3,074$1,860$1,082$610$337$42
44 years$2,970$1,773$1,015$563$305$36
45 years$2,872$1,691$953$520$277$31
46 years$2,777$1,613$895$481$252$27
47 years$2,688$1,539$841$444$229$23
48 years$2,602$1,469$791$410$208$20
49 years$2,519$1,403$743$379$189$17
50 years$2,441$1,340$699$350$171$14

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 $2,767 every year, while hoping to spend $41,046 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: 35/38/27 Blend
39$2,500,000$2,500,000$2,500,000$2,500,000
40$2,757,854$2,625,354$2,586,604$2,831,821
41$2,995,483$2,710,324$2,629,583$2,972,286
42$3,255,974$2,798,081$2,672,625$3,119,837
43$3,541,616$2,888,720$2,715,691$3,278,247
44$3,854,929$2,982,336$2,758,736$3,448,514
45$4,198,691$3,079,030$2,801,712$3,631,735
46$4,575,959$3,178,904$2,844,572$3,829,117
47$4,990,103$3,282,066$2,887,260$4,041,988
48$5,444,831$3,388,625$2,929,721$4,271,808
49$5,944,233$3,498,697$2,971,896$4,520,181
50$6,492,811$3,612,399$3,013,720$4,788,873
51$7,095,525$3,729,854$3,055,127$5,079,830
52$7,757,840$3,851,188$3,096,046$5,395,188
53$8,485,776$3,976,532$3,136,399$5,737,301
54$9,285,965$4,106,023$3,176,109$6,108,758
55$10,165,715$4,239,800$3,215,090$6,512,412
56$11,133,076$4,378,008$3,253,254$6,951,400
57$12,196,917$4,520,797$3,290,505$7,429,175
58$13,367,010$4,668,324$3,326,745$7,949,543
59$14,654,122$4,820,749$3,361,868$8,516,691
60$16,070,116$4,978,239$3,395,763$9,135,228
61$17,628,060$5,140,965$3,428,314$9,810,234
62$19,342,357$5,309,107$3,459,398$10,547,299
63$21,228,874$5,482,850$3,488,884$11,352,581
64$23,305,094$5,662,384$3,516,636$12,232,861
65$25,590,280$5,847,908$3,542,510$13,195,609
66$28,105,660$6,039,627$3,566,356$14,249,052
67$30,874,622$6,237,753$3,588,013$15,402,250
68$33,922,936$6,442,505$3,607,314$16,665,184
69$37,279,000$6,654,113$3,624,084$18,048,850
70$40,974,104$6,872,811$3,638,137$19,565,358
71$45,042,728$7,098,843$3,649,279$21,228,051
72$49,522,862$7,332,463$3,657,306$23,051,625
73$54,456,373$7,573,932$3,662,005$25,052,274
74$59,889,390$7,823,522$3,663,149$27,247,834
75$65,872,747$8,081,513$3,660,503$29,657,960
76$72,462,457$8,348,197$3,653,820$32,304,302
77$79,720,244$8,623,875$3,642,839$35,210,715
78$87,714,124$8,908,860$3,627,290$38,403,483
79$96,519,046$9,203,476$3,606,885$41,911,561
80$106,217,599$9,508,057$3,581,326$45,766,857
81$116,900,793$9,822,951$3,550,300$50,004,522
82$128,668,917$10,148,518$3,513,478$54,663,292
83$141,632,483$10,485,132$3,470,516$59,785,843
84$155,913,272$10,833,179$3,421,054$65,419,200
85$171,645,481$11,193,061$3,364,715$71,615,179
86$188,976,991$11,565,191$3,301,103$78,430,871
87$208,070,760$11,950,002$3,229,807$85,929,188
88$229,106,365$12,347,939$3,150,392$94,179,449
89$252,281,691$12,759,465$3,062,407$103,258,038
90$277,814,805$13,185,060$2,965,379$113,249,122
91$305,946,008$13,625,221$2,858,812$124,245,445
92$336,940,108$14,080,463$2,742,189$136,349,206
93$371,088,915$14,551,323$2,614,969$149,673,019
94$408,714,000$15,038,353$2,476,586$164,340,977
95$450,169,725$15,542,129$2,326,449$180,489,821
96$495,846,591$16,063,248$2,163,939$198,270,235
97$546,174,924$16,602,327$1,988,411$217,848,260
98$601,628,934$17,160,009$1,799,191$239,406,869
99$662,731,194$17,736,958$1,595,573$263,147,686
100$730,057,572$18,333,866$1,376,821$289,292,894