Disclaimer: This calculator is for educational and illustrative purposes only and is not intended as financial, investment, or tax advice. Results are estimates only and do not guarantee future outcomes. Investing involves risk, including possible loss of principal. Amber Otting operates as a Dave Ramsey Preferred Coach — a financial coaching role — not as a registered investment advisor. For personalized investment or tax guidance, please contact Blueprint Investments and Tax Planning. Full Disclaimer below.
Retirement Projection Calculator
Dave Ramsey recommends investing 15% of your gross household income in Baby Step 4. This calculator shows what your retirement accounts could grow to, estimates your tax situation in retirement, whether you should consider a Roth conversion, and helps you determine how much monthly income you’ll actually need. Always consult with a fiduciary or financial professional before making any changes to your retirement strategy.
For educational and illustrative purposes only. This is not financial, investment, tax, or legal advice. Results are estimates based on user-entered assumptions and do not guarantee future outcomes. Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. Tax estimates use 2026 federal brackets and exclude state taxes, RMDs, Social Security taxation rules, and future law changes. Consult a qualified fiduciary or financial advisor before making any investment decisions. Blueprint Investments and Tax Planning is available for personalized investment guidance.
Step 1 — Your current situation
Traditional pre-tax balance
After-tax balance — grows & withdraws tax-free
Used to calculate 15% Baby Step 4 target
Step 2 — Contributions
Dave recommends 15% of gross income. Your 15% target: —/month. Adjust below to see different scenarios.
Free money — always capture the full match first!
Bonus, inheritance, tax refund, or lump sum
Step 3 — Expected annual return
The S&P 500 has averaged 10.4% annually over the last 30 years (source: major index research, 2025). Dave Ramsey uses 11-12% in his examples based on long-term diversified mutual fund performance. Select a rate or enter your own.
The historical average U.S. inflation rate is ~3%. A 10.4% nominal return becomes approximately 7.4% in real (inflation-adjusted) terms. Checking this box shows your projected portfolio in today’s dollars — what that money will actually buy. Nominal figures are used for tax bracket calculations regardless of this setting.
Step 4 — Retirement income needs
Your required retirement income is likely lower than your working income — especially if you follow the Baby Steps. Answer these questions to estimate your monthly income need.
Check ssa.gov for your estimate
This is what you want to live on each month in retirement, from all sources combined
Step 5 — Additional accounts (optional)
Add a taxable brokerage account or annuity to see their impact on your retirement projection. These are optional — Dave Ramsey recommends maxing tax-advantaged accounts first.
Brokerage accounts have no contribution limits but gains are taxed. Dave recommends these only after maxing 401(k) and Roth IRA. Returns are typically lower after tax than retirement accounts.
Step 6 — Roth conversion analysis (optional)
What should your retirement account target be?
The “X times your income by age” benchmarks (like 1× by 30 and 10× by 67) are designed to help you build enough retirement savings to sustainably replace your income over time. This does assume that your income grows over time as well to keep up with inflation. These guidelines are generally based on a ~4% annual withdrawal rate.
In contrast, Dave Ramsey and Ramsey Solutions often teach that the market has historically returned around 10–12%, leading to discussions about higher potential withdrawal rates. However, most financial professionals still recommend a more conservative 4–5% withdrawal strategy to help ensure your savings last throughout retirement, especially in varying market conditions.
Why the 4% rule? It’s the widely accepted “safe withdrawal rate” — research (originally the Trinity Study) suggests that withdrawing 4% of your portfolio annually gives you a very high probability of not outliving your money over a 30-year retirement. It’s not a Ramsey-specific rule, but it’s the standard benchmark used in retirement planning tools.
Example: If your projected portfolio at retirement is $1,240,000:
- $1,240,000 × 0.04 = $49,600/year
- $49,600 ÷ 12 = $4,133/month
- Traditional 401Ks will be taxed as ordinary income during retirement (after 59.5 years old, required RMD at 73)
- ROTHs will not be taxed upon retirement withdrawal.
- Plus any Social Security you entered = total monthly income shown
Resources
- Fidelity Investments. Retirement Savings Benchmarks by Age.
https://www.fidelity.com/viewpoints/retirement/how-much-do-i-need-to-retire - Charles Schwab. Retirement Savings Guidelines and Benchmarks.
https://www.schwab.com/learn/story/retirement-savings-by-age - Trinity Study (Cooley, Hubbard, & Walz). Sustainable Withdrawal Rates from Retirement Portfolios.
- Ramsey Solutions. Investing and Retirement Guidance.
https://www.ramseysolutions.com/retirement
The calculators provided on this website are for educational and illustrative purposes only. They are not intended to constitute financial, investment, tax, or legal advice, and should not be relied upon as the basis for any financial decision. Results are estimates based on user-entered assumptions and hypothetical scenarios — they do not reflect actual investment performance, predict future results, or guarantee any specific outcome.
Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. These tools do not account for all variables that may affect your financial situation, including but not limited to inflation, taxes, fees, changes in income, or market volatility.
These calculators were built using AI-assisted tools for educational purposes only. They have not been reviewed or approved by FINRA, the SEC, or any regulatory body. Amber Otting operates as a Dave Ramsey Preferred Coach — a financial coaching role — and not as a registered investment advisor, broker-dealer, or licensed tax professional.
For personalized financial planning, investment advice, or tax guidance, please consult a qualified financial professional. Resources available to you:
Blueprint Investments and Tax Planning — Licensed investment advisory services
Schedule a free coaching consultation — Financial coaching with Amber Otting, a Dave Ramsey RPC Coaching Page