Dave Ramsey Retirement Calculator
Project your retirement nest egg using Ramsey's 15% rule, 8% withdrawal rate, and Baby Step 4 principles. Includes pension offsets, Social Security, employer match, and couples mode.
Preset
$9,114,933
$60,766
$8,000 from investments /mo
100%
$7,914,933 surplus
You're exceeding your retirement goal!
Year-by-Year Projection
35 years until retirement
| Age | Start Balance | Contribution | Growth | End Balance |
|---|---|---|---|---|
| 31 | $50,000 | +$15,000 | +$6,000 | $71,000 |
| 36 | $183,410 | +$15,000 | +$22,009 | $220,419 |
| 41 | $418,523 | +$15,000 | +$50,223 | $483,746 |
| 46 | $832,874 | +$15,000 | +$99,945 | $947,819 |
| 51 | $1,563,101 | +$15,000 | +$187,572 | $1,765,673 |
| 56 | $2,850,011 | +$15,000 | +$342,001 | $3,207,013 |
| 61 | $5,117,986 | +$15,000 | +$614,158 | $5,747,145 |
| 65 | $8,124,941 | +$15,000 | +$974,993 | $9,114,933 |
Need a change for Dave Ramsey Retirement Calculator?
Formulas, methodology & benchmarks
Common questions about Ramsey retirement
Find your state-specific calculator
Important Disclosure
This tool is an independent estimate and is not affiliated with, endorsed by, or sponsored by Ramsey Solutions or Dave Ramsey. Projections assume constant returns and do not model taxes, inflation, or market volatility.
About this calculator
Method, formulas, and limits.What this does
Projects your retirement nest egg from today to your target retirement age using Dave Ramsey's Baby Step 4 methodology: invest 15% of your gross household income into growth stock mutual funds. Then estimates your monthly retirement income using Ramsey's recommended 8% withdrawal rate, plus any pension and Social Security income you expect. A couples mode combines both spouses' incomes and savings for a household projection.
Who it is for
Anyone following Dave Ramsey's Baby Steps who wants to project their retirement, especially couples planning jointly, people with pension income, and those who want to test whether they're on track using Ramsey's specific assumptions (12% average return, 8% withdrawal rate, 15% savings rate).
How it works
The accumulation phase loops year by year from your current age to retirement age, applying your expected return to the balance, then adding your 15% contribution and any employer match. The retirement phase takes the projected nest egg, multiplies by the withdrawal rate to get annual income, adds pension and Social Security, and compares the result to your desired monthly retirement income.
Limitations
Does not model inflation, taxes, early withdrawal penalties, required minimum distributions (RMDs), contribution limits, vesting schedules, or sequence-of-returns risk. Assumes constant annual returns which never happens in real markets. Not affiliated with or endorsed by Ramsey Solutions.
Key calculations
- Annual Accumulation
- Each year: balance = previous balance × (1 + returnRate) + (income × contributionRate) + employerMatch. The match applies to capped salary: match = min(contribution, income × matchCap%) × matchRate%.
- Monthly Retirement Income
- monthlyIncome = (nestEgg × withdrawalRate / 12) + monthlyPension + monthlySocialSecurity. Ramsey recommends an 8% withdrawal rate based on 100% equity mutual fund portfolios.
- Target Nest Egg (Ramsey Math)
- targetNestEgg = (desiredMonthlyIncome − monthlyPension − monthlySocialSecurity) × 12 / withdrawalRate. If you need $5,000/month from investments, target = $5,000 × 12 / 0.08 = $750,000.
- On-Track Percentage
- onTrackPercent = min(100%, projectedNestEgg / targetNestEgg × 100). Shows how close you are to the nest egg required for your desired retirement income.
Reference ranges
- 15% Contribution Rate
- Ramsey recommends investing 15% of gross household income for retirement (Baby Step 4). This includes any employer match, so a 5% match means you contribute 10%.
- 8% Withdrawal Rate
- Ramsey recommends withdrawing up to 8% of your nest egg per year in retirement, based on his assumption that growth stock mutual funds average 12% returns.
- 12% Average Return
- Ramsey uses a 12% average annual return for growth stock mutual funds. This is higher than most historical market averages and is a key assumption to understand.
- Target Nest Egg
- To generate $5,000/month at an 8% withdrawal rate, you need a $750,000 nest egg ($5,000 × 12 / 0.08). The calculator computes your personal target from your desired income.
How to use it
- 1.Enter your basic informationSet your current age, target retirement age, and expected investment return rate. The default 12% matches Ramsey's growth stock mutual fund assumption.
- 2.Input income and savingsEnter your household income and current retirement savings. The 15% contribution rate follows Baby Step 4. Toggle employer match on if your workplace plan offers matching.
- 3.Switch to couples mode if neededToggle 'Separate Incomes' to enter individual incomes, ages, and savings for both spouses. The calculator combines both projections into a single household retirement picture.
- 4.Add retirement income sourcesEnter your desired monthly retirement income, plus any expected pension and Social Security benefits. These offset how much you need to withdraw from your nest egg.
- 5.Choose a preset scenarioUse the Ramsey preset for locked 15%/12%/8% assumptions, Conservative for 15%/8%/6%, or Custom to adjust all values freely.
- 6.Review your resultsCheck the projected nest egg, monthly retirement income, on-track percentage, and the year-by-year projection table. Toggle between 5-year intervals and the full schedule.
No. This is an independent tool inspired by the principles Dave Ramsey teaches in his Baby Steps, such as the 15% retirement contribution and 8% withdrawal rate. It is not affiliated with, endorsed by, or sponsored by Ramsey Solutions.
Dave Ramsey recommends investing in growth stock mutual funds and cites a historical average return of 12%. The calculator uses this as the default, but you can change it in the Expected Return dropdown.
Ramsey recommends withdrawing up to 8% of your nest egg annually, paired with his 12% growth assumption. This is more aggressive than the traditional 4% rule and assumes a 100% equity portfolio.
Couples mode combines both spouses' ages, incomes, and current savings into a single projection. Each person's contributions are calculated from their own income, and the results show one household nest egg.
Yes. In Ramsey's framework, the employer match counts as part of the 15% total retirement contribution. The calculator lets you toggle the match on and enter your plan's match rate and salary cap.
Ramsey's 8% withdrawal rate is double the traditional 4% rule. This calculator follows Ramsey's methodology, so it will show a higher monthly income from the same nest egg than a 4% rule calculator.
No. The calculator models gross amounts and assumes constant returns. Taxes, inflation, and market volatility are not included, so treat the results as a planning estimate, not a guarantee.
The Ramsey preset locks 15% contribution, 12% return, and 8% withdrawal. Conservative uses 15%/8%/6%. Custom lets you adjust every value to match your own assumptions.
Related calculators
Quick jumps
401k Calculator
Project 401k growth with employer match, then simulate retirement withdrawals over time.
Coast FIRE
See when your portfolio can coast to retirement on its own.
Roth Conversion
Estimate tax impact of converting Traditional IRA to Roth IRA with 2025/2026 brackets, pro-rata rule, and multi-year spread planner.
FERS Retirement
Check when you can retire, estimate your FERS pension and supplement, and project TSP growth.