🇺🇸 Compound Interest Calculator: After-Tax, Inflation-Adjusted & APY Growth
The ultimate free compound interest calculator for US investors. Model tax-free compounding vs. taxable accounts, calculate effective after-tax yields (APY), project inflation-adjusted real returns via the Fisher equation, and map exact doubling times with the Rule of 72.
| Year | Deposits | Gross Interest | Tax | Net Interest | Nominal Balance | Real Balance |
|---|
How to Calculate Compound Interest (Methodology & Formulas)
This tool goes far beyond a basic compound interest formula. It models real-world US investing — factoring in federal and state taxes, inflation erosion, escalating contributions, and multiple growth scenarios. Follow the 7 steps below to get your most accurate projection.
US Tax Impact Analysis (2026 Tax Year)
Interest income is taxed as ordinary income — not at the preferential capital gains rate. The IRS applies your marginal federal tax rate (10%–37%) to every dollar of interest earned, and most states add their own income tax on top. This section shows exactly how federal and state taxes reduce your real compound interest returns, using official 2026 IRS brackets and current state tax structures.
These are marginal tax rates — the rate you pay on each additional dollar earned. Your effective tax rate (total tax ÷ total income) will be lower because income in lower brackets is taxed at those lower rates first. Select your filing status below:
| Tax Rate | Taxable Income Range | Real-World Example |
|---|---|---|
| 10% | $0 – $11,925 | Entry-level earners, part-time workers |
| 12% | $11,926 – $48,475 | Median US household (~$45K gross) |
| 22% | $48,476 – $103,350 | Mid-career professionals ($60K–$90K) |
| 24% | $103,351 – $197,300 | Senior engineers, managers ($110K–$180K) |
| 32% | $197,301 – $250,525 | Directors, small business owners |
| 35% | $250,526 – $626,350 | VPs, established professionals |
| 37% | $626,351+ | Executives, high-net-worth earners |
Assume you’re in the 24% federal bracket (single, $120K income) living in California (9.3% state rate at that income level). You earn $5,000 in interest income this year from a high-yield savings account. Here’s the breakdown:
Compounding Frequency: Daily, Monthly, or Annual APY?
More frequent compounding produces higher returns — but the difference is smaller than most people expect. The jump from annual to monthly is meaningful, but the gain from monthly to daily is marginal. This section shows you the exact dollar difference across real investment scenarios, so you can decide if optimizing for daily compounding is worth the effort.
This table uses the compound interest formula A = P(1 + r/n)^(nt) where n is the number of times interest compounds per year. APY (Annual Percentage Yield) reflects the effective annual return after accounting for compounding.
| Frequency | Periods/Year | Final Amount | Total Interest | vs Annual | APY |
|---|---|---|---|---|---|
| Annual | 1 | $16,288.95 | $6,288.95 | — | 5.000% |
| Semi-Annual | 2 | $16,386.16 | $6,386.16 | +$97.22 | 5.062% |
| Quarterly | 4 | $16,436.19 | $6,436.19 | +$147.25 | 5.095% |
| Monthly | 12 | $16,470.09 | $6,470.09 | +$181.15 | 5.116% |
| Weekly | 52 | $16,483.25 | $6,483.25 | +$194.31 | 5.125% |
| Daily | 365 | $16,486.65 | $6,486.65 | +$197.70 | 5.127% |
| Continuous | ∞ | $16,487.21 | $6,487.21 | +$198.27 | 5.127% |
The frequency impact scales with principal, rate, and time. Below are four real-world scenarios showing the actual dollar difference between annual, monthly, and daily compounding:
The Rule of 72: Mental Math for Investment Doubling Time
The Rule of 72 is the fastest way to estimate how long it takes your money to double at a given interest rate. Just divide 72 by your annual rate — at 6%, your money doubles in approximately 72 ÷ 6 = 12 years. This shortcut is accurate within 1–2% for rates between 4% and 12%, making it the go-to mental math tool for investors, savers, and financial planners.
Rule 72 error: +3.4%
Rule 72 error: +2.9%
Rule 72 error: +2.4%
Rule 72 error: +1.9%
Rule 72 error: +1.4%
Rule 72 error: +0.9%
Rule 72 error: +0.4%
Rule 72 error: -0.1% (perfect!)
Rule 72 error: -0.5%
Rule 72 error: -1.0%
Rule 72 error: -1.5%
Rule 72 error: -1.9%
| Rate | Rule of 72 | Exact (Annual) | Why the Difference? |
|---|---|---|---|
| 3% | 24.0 years | 23.4 years | Rule 72 slightly overestimates at low rates |
| 5% | 14.4 years | 14.2 years | Error down to 1.4% — very reliable |
| 8% | 9.0 years | 9.0 years | Perfect match! Rule of 72 is exact at 8% |
| 10% | 7.2 years | 7.3 years | Slight underestimate at higher rates |
| 12% | 6.0 years | 6.1 years | Still under 2% error — acceptable for planning |
| 20% | 3.6 years | 3.8 years | Error grows to 5.3% — use Rule of 69 instead |
Here’s how long it takes common US investment vehicles to double your money, using typical 2026 rates and historical averages:
Contribution Escalation Guide: The Salary-Raise (Step-Up) Strategy
Contribution escalation is the single most powerful wealth-building strategy most people never use. By increasing your contributions by 2-3% annually (mirroring typical salary raises), you build dramatically more wealth without feeling any additional lifestyle sacrifice. This section shows you the exact dollar impact with real numbers.
Same $500 every month
by year 30
Starting with $10,000 + $500/month at 7% for 30 years. Each row shows the final balance at different annual escalation rates. The 3% escalation (green row) mirrors typical salary growth and adds over $220K compared to flat contributions.
| Escalation | Final Balance | Total Contributed | Final Monthly | vs Flat (0%) |
|---|---|---|---|---|
| 0% | $691,150 | $190,000 | $500 | — |
| 2% | $828,314 | $253,408 | $888 | +$137,163 |
| 3% | $914,745 | $295,452 | $1,178 | +$223,594 |
| 4% | $1,016,287 | $346,510 | $1,559 | +$325,136 |
| 5% | $1,135,992 | $408,633 | $2,058 | +$444,841 |
Watch how your monthly contribution grows from $500 to $1,178 over 30 years, while your balance compounds exponentially. Key milestone years shown below:
• Total invested: $190,000
• Growth: 264% on contributions
• Missed opportunity: $223,594
• Total invested: $295,452
• Growth: 210% on contributions
• Bonus wealth: $223,594 vs flat
Inflation & Real Returns (Purchasing Power Analysis)
Your investment statement shows one number. What your money can actually buy is a completely different number. Inflation is the silent thief of compound interest returns. Understanding inflation-adjusted (real) returns is essential for realistic long-term financial planning.
If your money grows at 5% per year but prices rise by 3%, your real purchasing power increases by only about 1.94% (using the Fisher equation). Over long time horizons, this gap is enormous. A dollar in 1990 has the purchasing power of approximately $0.47 in 2026 dollars, according to BLS CPI data.
in 30 years
(at 5% growth)
power
(at 3% inflation)
erosion over
30 years
Historical context shows inflation is not constant — it varies significantly by decade. Use 3.0% as a conservative long-term planning assumption based on the 100-year average.
| Period | Average Annual CPI | $10,000 Purchasing Power After |
|---|---|---|
| 2020–2026 | 4.2% | $7,665 after 6 years (post-pandemic surge) |
| 2010–2019 | 1.8% | $8,363 after 10 years |
| 2000–2009 | 2.5% | $7,812 after 10 years |
| 1990–1999 | 3.0% | $7,374 after 10 years |
| 1980–1989 | 5.1% | $6,070 after 10 years |
| 1970–1979 | 7.4% | $4,852 after 10 years (stagflation era) |
| Long-term (1926–2026) | ~3.0% | Standard planning assumption |
Source: Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, seasonally adjusted.
Real Return = [(1 + Nominal) / (1 + Inflation)] − 1 to calculate inflation-adjusted returns. This is more accurate than simple subtraction. Example: 7% nominal − 3% inflation = 3.88% real (not 4%).5 Expert Strategies to Maximize After-Tax Compound Growth
Actionable strategies used by financial advisors, CPAs, and wealth managers to optimize compound growth for US investors. Each tip includes real dollar impact calculations so you can see exactly what it’s worth.
The Time Horizon Advantage (Start Early)
A 25-year-old who invests $300/month at 7% for 40 years accumulates $718,389. A 35-year-old doing the same for 30 years gets only $340,221. Those 10 extra years are worth more than $378,168 — and the 25-year-old contributed only $36,000 more. Time is literally money in compound interest.
Dollar-Cost Averaging with Contribution Escalation
If you increase your monthly contribution by just 3% each year (matching a typical US salary raise), your 30-year outcome at 7% jumps from $566,765 (flat $500/mo) to $914,745 — a $347,980 boost that costs you nothing extra in real lifestyle terms because your income grew proportionally.
Capitalize on Roth & Tax-Deferred Accounts
The difference between taxable and tax-sheltered compound growth is staggering. $500/month at 7% for 30 years in a taxable account (22% federal + 5% state) produces roughly $410,000. The same in a Roth IRA: $566,765. That’s a $156,765 tax drag eliminated simply by choosing the right account type.
Annuity Due: Beginning-of-Period Contributions
Contributing at the beginning of each month instead of the end gives every deposit one extra compounding period. On $500/month at 7% for 30 years, this timing shift produces approximately $3,300 extra — free money for simply changing your auto-deposit date from the 30th to the 1st.
DRIP Investing (Dividend Reinvestment Plans)
If you’re investing in dividend-paying stocks or funds, always enable DRIP (Dividend Reinvestment Plan). A $10,000 S&P 500 investment in 1990 with dividends reinvested grew to approximately $214,000 by 2026 — but only $134,000 without reinvestment. That’s a 60% difference powered entirely by reinvested compound growth.
US Asset Class Return Benchmarks: Historical Yields & APY
Reference rates for different US asset classes to help you choose a realistic annual rate for your compound interest projection. Use conservative estimates — it’s better to be pleasantly surprised than disappointed.
| Asset Class | Typical APY / Return | Risk Level | Best Use Case | $10K After 10 Years |
|---|---|---|---|---|
| High-Yield Savings (HYSA) | 4.00% – 5.25% | Low | Emergency fund, short-term savings | $14,802 – $16,679 |
| Certificates of Deposit (CDs) | 4.00% – 5.00% | Low | Fixed-term savings, CD ladders | $14,802 – $16,289 |
| US Treasury Bonds | 4.00% – 5.50% | Very Low | Capital preservation, state tax exempt | $14,802 – $17,081 |
| Corporate Bonds (Inv. Grade) | 5.00% – 6.50% | Low-Med | Income generation, diversification | $16,289 – $18,771 |
| S&P 500 Index Fund | ~10% nominal / ~7% real | Medium | Long-term growth (10+ years) | $19,672 (at 7% real) |
| Total Stock Market (VTI) | ~9.5% nominal | Medium | Broad market diversification | $24,782 (nominal) |
| Small-Cap Value | ~12% historical | High | Aggressive long-term growth | $31,058 |
| REIT Index | ~8% – 10% | Med-High | Real estate exposure, income | $21,589 – $25,937 |
| Standard Savings Account | 0.01% – 0.50% | None | ❌ Not recommended — losing to inflation | $10,001 – $10,511 |
Note: Past performance does not guarantee future results. Stock market returns are highly variable year-to-year. The figures above represent long-term historical averages. Sources: S&P Dow Jones Indices, Federal Reserve H.15, Morningstar, FDIC National Rates.
Compound Interest FAQs: APY, Taxes, & US Investing
Answers to the most common questions about compound interest, US tax treatment, inflation-adjusted returns, contribution strategies, and calculator usage. Click any question to reveal the detailed answer.
Compound interest is interest calculated on both the initial principal and all previously accumulated interest. Unlike simple interest (which is calculated only on the principal), compound interest grows exponentially over time because you earn “interest on interest.”
The formula is A = P(1 + r/n)^(nt), where:
- P = principal (initial investment)
- r = annual interest rate (as a decimal)
- n = number of times interest compounds per year
- t = time in years
- A = final amount
For example, $10,000 at 5% compounded annually for 10 years becomes $16,288.95. If compounded monthly, it becomes $16,470.09 — $181 more due to more frequent compounding.
APR (Annual Percentage Rate) is the stated interest rate without accounting for compounding. APY (Annual Percentage Yield) includes the effect of compounding and reflects the true annual return.
For example, a 5% APR compounded monthly produces a 5.116% APY. The formula is APY = (1 + APR/n)^n - 1, where n is the number of compounding periods per year.
Banks are required by US federal Truth in Savings regulations to disclose APY on deposit accounts, so consumers can accurately compare offers. Always use APY when comparing savings accounts, CDs, and money market accounts.
Yes, but the difference is smaller than most people expect. More frequent compounding produces slightly higher returns. For example, $10,000 at 5% for 10 years:
- Annual compounding: $16,288.95
- Monthly compounding: $16,470.09 (+$181)
- Daily compounding: $16,486.65 (+$198 total vs annual)
The biggest jump is from annual to monthly. Beyond that, gains are marginal. Daily compounding only adds $16.56 more than monthly over 10 years. Most banks and brokerages compound daily or monthly by default, so you’re already capturing most of the benefit.
The Rule of 72 is a quick mental math shortcut to estimate how long it takes your money to double at a given interest rate. Just divide 72 by the annual interest rate:
Years to Double ≈ 72 ÷ Annual Rate (%)
For example, at 6% interest, your money doubles in approximately 72 ÷ 6 = 12 years. At 8%, it doubles in 9 years.
The Rule of 72 is most accurate for rates between 4% and 12%, with less than 2% error in this range. At 8%, it’s perfectly exact. Our calculator computes this automatically and shows the exact doubling time alongside your results.
Yes. The IRS taxes interest income as ordinary income at your marginal federal tax rate (10% to 37% for 2026). Most states also tax interest income. This applies to interest earned in savings accounts, CDs, money market accounts, and bonds.
Your bank or financial institution will issue a Form 1099-INT for any account earning $10 or more in interest annually. You must report this on your tax return and pay taxes on it, even if you don’t withdraw the money.
Our calculator integrates both federal and state tax brackets to show your true after-tax returns. For someone in the 24% federal + 5% state bracket (29% combined), a 5% gross return becomes approximately 3.55% after taxes.
Our calculator applies your combined federal and state marginal tax rate to the gross interest earned each year. The formula reduces your effective growth rate:
After-Tax Rate = Nominal Rate × (1 − Combined Tax Rate)
For example, if you’re in the 24% federal bracket with a 5% state tax (29% combined) earning 5% gross interest:
After-Tax Rate = 5% × (1 − 0.29) = 3.55%
This means your money is actually growing at 3.55%, not 5%. Over 30 years, this tax drag costs you over $180,000 in lost compound growth on a $50,000 initial investment with $500/month contributions.
Yes, by using tax-advantaged accounts like 401(k)s, IRAs, Roth IRAs, HSAs, and 529 plans. These accounts shelter your compound growth from annual taxation:
- Traditional 401(k)/IRA: Tax-deferred growth (pay taxes on withdrawal in retirement)
- Roth 401(k)/IRA: Tax-free growth and withdrawals (pay taxes upfront on contributions)
- HSA: Triple tax advantage (deductible contributions, tax-free growth, tax-free withdrawals for medical expenses)
- 529 Plan: Tax-free growth for qualified education expenses
For example, $500/month at 7% for 30 years in a taxable account (27% combined tax rate) produces roughly $410,000. The same in a Roth IRA: $566,765 — a $156,765 tax drag eliminated.
Inflation erodes the purchasing power of your money over time. A 5% nominal return with 3% inflation produces approximately a 1.94% real return (calculated using the Fisher equation).
The Fisher equation is: Real Return = [(1 + Nominal) / (1 + Inflation)] − 1
For example: [(1.05) / (1.03)] − 1 = 0.0194 = 1.94%
Our calculator shows both nominal values (face dollar amounts) and inflation-adjusted real values (purchasing power in today’s dollars). This helps you understand your true wealth growth, not just account balance growth.
At 3% annual inflation, $100,000 in 30 years will have the purchasing power of only $41,198 today — less than half its nominal value.
A real return is your investment return after adjusting for inflation — it tells you how much your purchasing power actually increased, not just your account balance.
Nominal return = what you see in your account (face value)
Real return = what you can actually buy with that money (inflation-adjusted)
For example, if you earn 7% nominal but inflation is 3%, your real return is approximately 3.88% using the Fisher equation. This is what your lifestyle can actually improve by — not the 7% nominal figure.
This matters because many people look at high nominal balances and overestimate their future wealth. A $1 million portfolio in 30 years at 3% inflation has the purchasing power of only $412,000 today.
Contribution escalation means increasing your periodic contributions by a set percentage each year — typically 2% to 5% to match salary raises. This feature dramatically increases long-term wealth.
For example, contributing $500/month with a 3% annual escalation over 30 years at 7% produces approximately $793,143. Flat $500/month contributions produce only $566,765. That’s a $226,378 boost — and it costs you nothing extra in real lifestyle terms because your income grew proportionally.
By year 30, your monthly contribution would be $1,213 (up from $500) — but if your salary also grew 3% annually, this represents the same percentage of your income throughout.
Beginning-of-period contributions (annuity due) earn slightly more because each contribution has one extra period to compound. The difference grows with higher rates and longer time horizons.
For a $500 monthly contribution at 7% for 30 years:
- End-of-period: $566,765
- Beginning-of-period: $570,065 (+$3,300)
That’s $3,300 in free money just for changing your auto-deposit date from the 30th to the 1st of the month. If your paycheck hits on the 1st or 15th, set up automatic transfers for the same day to maximize compounding time.
If you have a lump sum available, investing it all at once typically produces higher returns than spreading it out (called “dollar-cost averaging”), because the money has more time to compound.
However, regular contributions are more practical for most people because:
- Most people don’t have large lump sums to invest
- Regular contributions build discipline and automate wealth-building
- Dollar-cost averaging reduces emotional risk by spreading purchases across different market prices
- Payroll deductions (401k, automatic transfers) make it effortless
The best strategy? Both. Invest any lump sums immediately (inheritance, bonus, tax refund), then set up automatic monthly contributions from your paycheck.
Yes, with the understanding that stock market returns are variable, not fixed. Use the historical average annual return of the S&P 500 (approximately 10% nominal, 7% inflation-adjusted) as a starting point.
Our scenario comparison feature is perfect for modeling optimistic, moderate, and conservative return assumptions side by side. For example:
- Scenario A (Conservative): 5% annual return
- Scenario B (Moderate): 7% annual return
- Scenario C (Optimistic): 10% annual return
This shows you a range of possible outcomes. Remember: past performance does not guarantee future results, and the stock market experiences significant year-to-year volatility.
Here are typical 2026 US rates for common investment vehicles:
- High-Yield Savings Account: 4.0% – 5.25%
- Certificate of Deposit (CD): 4.0% – 5.0%
- US Treasury Bonds: 4.0% – 5.5%
- Investment-Grade Corporate Bonds: 5.0% – 6.5%
- S&P 500 Index Fund: ~10% nominal / ~7% real (historical avg)
- Total Stock Market: ~9.5% nominal (historical avg)
- Small-Cap Value Stocks: ~12% (historical avg, high volatility)
- Real Estate (REITs): ~8% – 10%
Use conservative estimates for planning. Better to be pleasantly surprised than disappointed.
This calculator uses the same mathematical formulas as Excel, financial planning software, and professional CPA tools. The compound interest formula is a mathematical certainty when given fixed inputs.
Our calculator offers several advantages over Excel:
- No setup required — instant results
- Integrated 2026 US federal tax brackets (no manual lookup)
- State tax integration for all 50 states
- Fisher equation inflation adjustment built-in
- Visual charts, year-by-year schedules, and PDF export
- Mobile-optimized interface
- No risk of formula errors
For 99% of use cases, this calculator is sufficient. For complex estate planning or business valuations, consult a CPA or CFP.
Legal Disclaimer & SEC/IRS Regulatory Sourcing
USFinanceCalculators.com is committed to accuracy, transparency, and responsible financial education. This section outlines our editorial standards, calculation methodology, legal limitations, and authoritative sources. Read this carefully before relying on calculator results for financial decisions.
This calculator and all content on USFinanceCalculators.com are provided for educational and informational purposes only. Nothing on this website constitutes professional financial, investment, tax, legal, or accounting advice. You should not rely solely on this calculator to make financial decisions.
No warranty or guarantee: While we strive for accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the calculator, formulas, data, or information. Any reliance you place on such information is strictly at your own risk.
Not a substitute for professional advice: Tax laws, investment regulations, and financial situations vary widely. Before making any financial decision, consult a qualified Certified Public Accountant (CPA), Certified Financial Planner (CFP), Registered Investment Advisor (RIA), tax attorney, or other licensed professional who understands your unique circumstances.
Hypothetical projections: All calculator results are hypothetical projections based on user inputs and mathematical formulas. Past performance does not guarantee future results. Actual investment returns may be higher or lower than projected. Tax rates, inflation rates, and market conditions change over time.
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Evidence-based methodology: All formulas, tax brackets, and financial principles are sourced from official government publications, peer-reviewed academic research, and established financial standards. We cite authoritative sources including the IRS, SEC, Federal Reserve, and Bureau of Labor Statistics.
Regular updates: US federal tax brackets, state tax rates, and economic data are updated annually or as regulations change. The current calculator version uses 2026 tax year data as published by the IRS in Revenue Procedure 2025-17.
Open methodology: Unlike proprietary “black box” calculators, we explain our formulas, assumptions, and data sources transparently in the educational content sections. Users can verify our math independently or cross-check with professional-grade tools like Excel.
Our calculator integrates data and principles from the following official US government agencies and regulatory bodies. Click any card to visit the authoritative source:
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Compound Interest Formula: We use the standard formula
A = P(1 + r/n)^(nt)where A = final amount, P = principal, r = annual rate, n = compounding frequency, t = time in years. This is the same formula used by banks, the SEC, and financial institutions worldwide. - Recurring Contributions: For regular deposits, we apply the future value of an annuity formula with compound growth. Beginning-of-period contributions use annuity due formula; end-of-period uses ordinary annuity formula.
- Contribution Escalation: Annual contribution increases are applied at the start of each calendar year. The escalation compounds annually but contributions are made at the selected frequency (monthly, quarterly, etc.).
-
Tax Calculation: We apply the user’s combined marginal tax rate (federal + state) to the gross interest earned each period using formula:
After-Tax Rate = Gross Rate × (1 − Tax Rate). This is a simplified marginal rate approach suitable for taxable accounts. Tax-advantaged accounts (401k, IRA) are not taxed annually. -
Inflation Adjustment: Real returns are calculated using the Fisher equation:
Real Return = [(1 + Nominal) / (1 + Inflation)] − 1. This is the academically accepted method for inflation adjustment, more precise than simple subtraction. - Federal Tax Brackets: 2026 brackets sourced from IRS Revenue Procedure 2025-17 with inflation-adjusted thresholds. We use marginal rate (your top bracket), not effective rate, to calculate tax on interest income.
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Rule of 72: Doubling time estimated as
72 ÷ Annual Rate. Exact doubling time calculated asln(2) / ln(1 + r). Both values displayed for comparison.
- Variable interest rates: The calculator assumes a fixed annual rate. Real-world rates fluctuate with market conditions, Federal Reserve policy, and economic cycles.
- Investment volatility: Stock market returns vary significantly year-to-year. Historical averages (e.g., S&P 500’s 10% nominal return) include both boom and crash years. Your actual returns will differ.
- Fee impact: Mutual funds, ETFs, and advisory fees (expense ratios, management fees, transaction costs) reduce your net return. A 1% annual fee on a 7% gross return becomes 6% net — compounded over 30 years, this costs 20%+ of final balance.
- AMT (Alternative Minimum Tax): High earners may face AMT, which changes effective tax rates. Our calculator uses standard marginal rates only.
- State tax complexity: Some states have progressive brackets, others use flat rates, and 9 states have no income tax. We use a single state rate input for simplicity. Residents of CA, NY, NJ, etc., should use their actual marginal state rate.
- FDIC/SIPC limits: Bank accounts are FDIC insured up to $250,000 per depositor per institution. Brokerage accounts have SIPC coverage up to $500,000. Amounts exceeding these limits carry additional risk.
- Contribution limit caps: IRS imposes annual limits on 401(k) ($23,000 in 2026), IRA ($7,000), HSA, etc. Our calculator does not enforce these caps — verify you’re within legal limits.
- Required Minimum Distributions (RMDs): Traditional IRAs/401(k)s require withdrawals starting at age 73 (as of 2026). This calculator does not model withdrawal schedules.
- Early withdrawal penalties: Withdrawing from retirement accounts before age 59½ typically incurs 10% penalty plus ordinary income tax. Not modeled here.
- Social Security, pensions, other income: Your total retirement income includes multiple sources. This calculator models only your invested savings growth.
