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%11.3%
1 years$206,448$204,609$202,815$201,063$199,354$198,263
2 years$102,202$100,298$98,454$96,665$94,930$93,830
3 years$67,458$65,546$63,706$61,934$60,228$59,152
4 years$50,089$48,183$46,362$44,620$42,955$41,912
5 years$39,671$37,776$35,979$34,273$32,654$31,646
6 years$32,727$30,847$29,076$27,408$25,838$24,867
7 years$27,770$25,905$24,162$22,534$21,013$20,079
8 years$24,053$22,206$20,492$18,903$17,432$16,536
9 years$21,164$19,334$17,649$16,101$14,680$13,821
10 years$18,854$17,042$15,387$13,879$12,509$11,686
11 years$16,965$15,172$13,547$12,079$10,758$9,972
12 years$15,393$13,617$12,022$10,595$9,322$8,572
13 years$14,063$12,306$10,741$9,354$8,129$7,414
14 years$12,924$11,186$9,651$8,303$7,126$6,444
15 years$11,938$10,218$8,713$7,405$6,274$5,626
16 years$11,076$9,375$7,900$6,630$5,545$4,929
17 years$10,316$8,634$7,189$5,957$4,917$4,332
18 years$9,642$7,978$6,562$5,369$4,372$3,817
19 years$9,039$7,394$6,008$4,851$3,897$3,371
20 years$8,497$6,871$5,513$4,394$3,481$2,983
21 years$8,007$6,400$5,071$3,988$3,115$2,645
22 years$7,562$5,974$4,674$3,626$2,792$2,348
23 years$7,157$5,588$4,316$3,302$2,506$2,087
24 years$6,786$5,235$3,991$3,012$2,253$1,858
25 years$6,445$4,913$3,697$2,750$2,027$1,655
26 years$6,131$4,617$3,428$2,515$1,826$1,476
27 years$5,841$4,346$3,184$2,302$1,646$1,318
28 years$5,572$4,095$2,960$2,109$1,485$1,177
29 years$5,322$3,863$2,754$1,934$1,341$1,052
30 years$5,089$3,648$2,565$1,775$1,212$940
31 years$4,871$3,449$2,392$1,630$1,096$841
32 years$4,668$3,263$2,231$1,498$991$753
33 years$4,477$3,090$2,084$1,378$897$674
34 years$4,298$2,929$1,947$1,268$812$604
35 years$4,129$2,778$1,820$1,167$736$541
36 years$3,971$2,637$1,703$1,075$666$485
37 years$3,821$2,504$1,594$990$604$435
38 years$3,679$2,380$1,492$913$548$390
39 years$3,545$2,263$1,398$841$497$350
40 years$3,418$2,153$1,310$776$450$314
41 years$3,297$2,050$1,229$716$409$281
42 years$3,183$1,952$1,153$661$371$253
43 years$3,074$1,860$1,082$610$337$227
44 years$2,970$1,773$1,015$563$305$203
45 years$2,872$1,691$953$520$277$183
46 years$2,777$1,613$895$481$252$164
47 years$2,688$1,539$841$444$229$147
48 years$2,602$1,469$791$410$208$132
49 years$2,519$1,403$743$379$189$119
50 years$2,441$1,340$699$350$171$107

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 $3,014 every year, while hoping to spend $48,866 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: 86/8/6 Blend
39$2,500,000$2,500,000$2,500,000$2,500,000
40$2,758,109$2,625,609$2,586,859$2,994,376
41$2,987,443$2,702,271$2,621,526$3,225,464
42$3,238,531$2,781,051$2,655,716$3,472,310
43$3,513,541$2,862,002$2,689,362$3,741,981
44$3,814,860$2,945,178$2,722,393$4,036,738
45$4,145,115$3,030,631$2,754,733$4,359,072
46$4,507,203$3,118,418$2,786,302$4,711,728
47$4,904,310$3,208,593$2,817,016$5,097,726
48$5,339,951$3,301,215$2,846,787$5,520,395
49$5,817,991$3,396,340$2,875,520$5,983,399
50$6,342,693$3,494,027$2,903,116$6,490,774
51$6,918,749$3,594,336$2,929,472$7,046,969
52$7,551,329$3,697,326$2,954,477$7,656,881
53$8,246,129$3,803,060$2,978,017$8,325,906
54$9,009,423$3,911,598$2,999,969$9,059,986
55$9,848,121$4,023,004$3,020,205$9,865,671
56$10,769,838$4,137,340$3,038,591$10,750,173
57$11,782,962$4,254,670$3,054,984$11,721,438
58$12,896,735$4,375,060$3,069,237$12,788,222
59$14,121,339$4,498,574$3,081,193$13,960,169
60$15,467,989$4,625,278$3,090,686$15,247,907
61$16,949,045$4,755,238$3,097,546$16,663,142
62$18,578,124$4,888,521$3,101,590$18,218,773
63$20,370,228$5,025,193$3,102,628$19,929,014
64$22,341,885$5,165,322$3,100,461$21,809,522
65$24,511,310$5,308,975$3,094,878$23,877,551
66$26,898,568$5,456,220$3,085,661$26,152,112
67$29,525,771$5,607,123$3,072,579$28,654,149
68$32,417,279$5,761,752$3,055,391$31,406,744
69$35,599,938$5,920,174$3,033,843$34,435,327
70$39,103,326$6,082,457$3,007,670$37,767,918
71$42,960,032$6,248,664$2,976,595$41,435,395
72$47,205,970$6,418,864$2,940,326$45,471,778
73$51,880,711$6,593,120$2,898,558$49,914,558
74$57,027,856$6,771,495$2,850,972$54,805,042
75$62,695,453$6,954,054$2,797,235$60,188,752
76$68,936,443$7,140,856$2,736,997$66,115,845
77$75,809,165$7,331,963$2,669,891$72,641,591
78$83,377,902$7,527,432$2,595,535$79,826,896
79$91,713,491$7,727,319$2,513,528$87,738,873
80$100,893,988$7,931,679$2,423,452$96,451,477
81$111,005,406$8,140,562$2,324,869$106,046,200
82$122,142,526$8,354,018$2,217,321$116,612,846
83$134,409,791$8,572,092$2,100,328$128,250,371
84$147,922,292$8,794,827$1,973,391$141,067,823
85$162,806,853$9,022,261$1,835,987$155,185,367
86$179,203,229$9,254,428$1,687,569$170,735,421
87$197,265,422$9,491,359$1,527,567$187,863,904
88$217,163,138$9,733,079$1,355,384$206,731,614
89$239,083,386$9,979,607$1,170,397$227,515,748
90$263,232,241$10,230,958$971,955$250,411,569
91$289,836,794$10,487,139$759,380$275,634,253
92$319,147,289$10,748,151$531,961$303,420,921
93$351,439,490$11,013,988$288,959$334,032,872
94$387,017,280$11,284,635$29,601$367,758,054
95$426,215,529$11,560,069$0$404,913,780
96$469,403,258$11,840,257$0$445,865,547
97$516,987,118$12,125,158$0$490,985,917
98$569,415,231$12,414,718$0$540,697,683
99$627,181,418$12,708,872$0$595,468,842
100$690,829,859$13,007,543$0$655,815,120