How much will I spend in retirement?

A common starting point is 70–80% of your pre-retirement income, but actual spending varies widely. Housing, healthcare, and daily essentials form your "core" spending floor. Discretionary items like travel and dining tend to be higher in early retirement and decline later. Healthcare costs typically rise with age. Building a detailed budget is more accurate than using a single replacement ratio.

What is the biggest expense in retirement?

For most retirees, housing is the single largest expense — including mortgage or rent, property taxes, insurance, and maintenance. Healthcare is the second largest and the fastest-growing category, with a typical couple estimated to need $315,000+ for medical expenses in retirement (excluding long-term care). If your home is paid off, healthcare often becomes the top expense.

Retirement

What Will You Actually Spend in Retirement?

Find out how much annual income you'll need in retirement and where it will come from — either through a quick income replacement estimate, or a detailed tax-aware analysis that strips taxes, savings, and temporary expenses from your paycheck to reveal exactly what you spend on your lifestyle today.

Current Monthly Payment

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New Monthly Payment

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Est. Interest Saved

—

Break-Even

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Retirement Estimate

Current Annual Income

Expected Retirement Age

Income Replacement Rate

Expected Annual Social Security

Check ssa.gov/myaccount for your estimate

Annual Retirement Income Gap

$44,000

The annual shortfall your savings need to cover · Social Security covers 35% of your target

Target Annual Income

$68,000

80% of current

Monthly Income Gap

$3,667

from savings & investments

Portfolio Needed

$1.10M

4% withdrawal rule

Income Comparison

Compares your current income to the target retirement income, showing the portion covered by Social Security and the gap your savings need to fill.

Income & Filing

Filing Status

Kids Under 17

Dependents 17+

Your Gross Annual Income

Spouse Gross Annual Income

Other Ordinary Income

Interest, dividends, side income, etc.

Taxes & Deductions

State

Additional Local Tax Rate

City wage tax, local income tax, etc.

Itemized Deductions (if > standard)

Leave at $0 to use standard deduction

Retirement Savings

2025 Limits: 401(k) $23,500 · IRA $7,000

Your 401(k) Contribution

TraditionalRoth

Spouse 401(k) Contribution

TraditionalRoth

Annual IRA Contribution

Annual After-Tax Savings

Brokerage accounts, emergency fund, etc.

Large Expenditures

Expenses that will end before or soon after retirement

Monthly Mortgage P&I

Expense 1 Name

Annual Amount

Expense 2 Name

Annual Amount

Expense 3 Name

Annual Amount

Estimated Annual Core Retirement Spend

$83,328

48% of gross income · $6,944/month

Effective Tax Rate

22%

Savings Rate

13%

Income Breakdown

Total Gross Income$175,000

Taxes

Federal Income Tax-$17,878

Social Security Tax-$10,850

Medicare Tax-$2,538

State Income Tax (New Jersey)-$7,907

Total Taxes-$39,172

Savings

Your 401(k) (Traditional)-$10,000

Spouse 401(k) (Traditional)-$7,500

After-Tax Savings-$5,000

Total Savings-$22,500

Large Expenditures (Temporary)

Mortgage P&I-$30,000

Total Large Expenditures-$30,000

Core Retirement Spend$83,328

Tax Calculation Details

Total Gross Income$175,000

Less: Pre-tax Retirement Contributions-$17,500

Adjusted Gross Income (AGI)$157,500

Less: Standard Deduction-$30,000

Federal Taxable Income$127,500

Where Your Income Goes

Shows how your gross income is divided across taxes, savings, temporary expenses, and core spending — the baseline you need to replace in retirement.

About This Analysis

This calculator provides estimates based on the inputs you supply. It assumes standard amortization and does not account for taxes, insurance, PMI, prepayment penalties, or the opportunity cost of funds. Results are for informational and educational purposes only and should not be considered financial advice. Consult a qualified professional before making financial decisions.

·Tax calculations are approximations based on 2025 tax year data.
·Does not account for all tax credits, deductions, or special circumstances.
·Consult a qualified tax professional for personalized guidance.

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