Income generated by a savings plan

Saving regularly can help you achieve your future income goals. Use this calculator to determine how much income an existing balance and/or a regular savings plan can provide.

Savings

Current age

Current savings balance

Annual savings amount

Advanced options 1

Annual savings increase ?

How much you expect to raise your yearly contribution each year.

Assumptions

Age when income should start

Number of years to receive income

Before-tax return on savings ?

Table of Historic Rates of Return. Inflation 2.9%, U.S. Treasury Bills 3.3%, Long-term Government Bonds 5.0%, U.S. Large-Company Stocks 10.4%, and U.S. Small-Company Stocks 11.8%. Past performance is no guarantee of future results. Source: Ibbotson SBBI 1926-2024

Advanced options 1

Marginal tax bracket ?

Used to estimate the after-tax value of the income this plan can provide.

Table of Federal Income Brackets and Rates. Tax Rate For Single Filers For Married Individuals Filing Joint Returns For Heads of Households 10% $0 to $11,925 $0 to $23,850 $0 to $17,000 12% $11,925 to $48,475 $23,850 to $96,950 $17,000 to $64,850 22% $48,475 to $103,350 $96,950 to $206,700 $64,850 to $103,350 24% $103,350 to $197,300 $206,700 to $394,600 $103,350 to $197,300 32% $197,300 to $250,525 $394,600 to $501,050 $197,300 to $250,500 35% $250,525 to $626,350 $501,050 to $751,600 $250,500 to $626,350 37% $626,350 or more $751,600 or more $626,350 or more.

Enter your values and select Calculate.

The annual income figure is what your savings could pay out each year for the number of years you asked for, based on the balance you've projected you'll have when you stop saving and start drawing it down. It does not account for what happens if you outlive the plan, if markets underperform in those drawdown years, or if your spending needs change. Treat it as one estimate among a range of reasonable ones, not a guaranteed paycheck.

Two inputs move this result more than any others: the before-tax return you assume on your savings, and how many years you give yourself to save before income needs to start. A small change in either compounds significantly over decades — try nudging the return down a point or pushing retirement age back a year or two to see how sensitive your number really is. Your annual savings amount and any planned increase to it also matter, especially if accumulation years are limited.

This model does not include inflation, investment fees, or changes to tax law, and it assumes a constant rate of return every year rather than the ups and downs markets actually deliver. The tax bracket entered is used only to estimate after-tax value, not to model how brackets might shift over time. A precise-looking number here is still an estimate built on assumptions you chose.

It's worth rerunning this whenever your savings rate changes, you get a raise, you revise your retirement timeline, or your expected return assumption changes meaningfully. Many people never put a number on this at all — having one, even a rough one, puts you ahead, and small increases to your savings rate now tend to show up as outsized gains in the income figure later.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.