dave ramsey retirement calculator

This calculator follows Dave Ramsey's retirement philosophy that disciplined investing, consistent monthly contributions, and long-term compound growth can build a sizable nest egg. Enter your current age, target retirement age, present retirement savings, planned monthly investment, and the growth rate you expect from a diversified portfolio of growth stock mutual funds. The calculation compounds your existing balance and contributions monthly so you can see if you are on track with Ramsey's recommended 15% investing guideline.

How the Dave Ramsey Retirement Calculation Works

Dave Ramsey teaches that consistent investing combined with compound growth can deliver a secure retirement. The formula above compounds your existing balance and every monthly contribution across the months between your current age and your target retirement age. By default Ramsey models long-term growth near 12% in growth stock mutual funds, though you can enter any rate that matches your expectations.

The possible monthly income figure uses Ramsey's 8% draw guideline, which assumes your nest egg can continue to grow even after retirement while you withdraw a portion for living expenses. If that monthly income falls short of your desired lifestyle, increase your monthly investment, move your retirement age, or pursue higher earnings so that 15% contributions deliver a larger future value.

Example

Someone at age 32 with 25,000 already saved, contributing 900 every month, and expecting 10.5% annual growth until age 65 would end up with approximately 3,315,000 and could draw around 22,100 each month using the 8% rule. This demonstrates how Ramsey's emphasis on long-term investing and debt-free living can lead to a substantial retirement income.