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How it works
retirement gap calculator takes your inputs and produces needed retirement income, projected income, annual retirement gap. Find the gap between your projected retirement income and your actual expenses in retirement. You provide 5 inputs: Current Annual Income (currency, in dollars) (default: 80000 dollars); Income Replacement % (percent, in percent) (default: 80 percent); Annual Social Security (currency, in dollars) (default: 24000 dollars); Annual Pension (currency, in dollars) (default: 0 dollars); Annual Portfolio Income (currency, in dollars) (default: 30000 dollars). The calculator returns 3 outputs: Needed Retirement Income (the primary result); Projected Income (a secondary output); Annual Retirement Gap (a secondary output). Investment calculations rest on a few variables — principal, return rate, time, and compounding — but their interaction is non-linear enough that intuition alone gets the answer wrong more often than not. This tool runs the real formula with your inputs and shows the numbers that matter, not the rounded approximations from a textbook. With the default values, needed retirement income is computed from the interaction of every input field — change any one of them and the result updates immediately, so you can stress-test different scenarios without re-entering the whole form. Adjust the inputs to match your real financial situation. The defaults are realistic starting points, but every person's circumstances differ — your actual income, expenses, rates, and timelines will produce a different answer. Use the tool iteratively: start with the defaults, then change one variable at a time to see which factor has the largest impact on your outcome.Tips
- Start with the default values to see a baseline result, then change one input at a time to understand which factor matters most for your outcome.
- Replace every default with your actual number — estimates and rules of thumb produce estimates, not answers. Pull your real figures from pay stubs, statements, or account dashboards.
- Use a conservative return rate (5-6% rather than the historical 10%) for planning purposes. Markets have long flat stretches, and planning on the average sets you up for a shortfall.
Frequently asked questions
How much income do I need in retirement?
Rule of thumb: 70-80% of pre-retirement income. On $80K salary: $56-64K needed. Social Security covers $20-30K. Portfolio must cover the rest.
What does the retirement gap calculator calculate?
It takes current annual income, income replacement %, annual social security, annual pension, annual portfolio income as inputs and computes needed retirement income, projected income, annual retirement gap. The primary output is needed retirement income. Find the gap between your projected retirement income and your actual expenses in retirement.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.