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Ramsey’s plan: invest 15% of gross income, assume about 11% a year, and withdraw 8% in retirement. A 30-year-old earning $70,000 who invests $875/month with $25,000 already saved would have about $6,828,425 at 67 ($2,287,406 in today’s dollars). That supports $546,274 a year at Ramsey’s 8%, or $273,137 at the safer 4% rule. At a 7% return the same plan reaches $2,165,222.
Project your nest egg with Ramsey Solutions’ assumptions, find your retirement number, and see exactly how to split your 15% across your 401(k) match, a Roth IRA and the rest of your 401(k) under the 2026 IRS limits. Every result is shown next to the mainstream 4% rule, so you see the optimistic and cautious answers together.
Last updated October 2, 2026. Free, no sign-up. Independent tool — not affiliated with Ramsey Solutions. Educational estimate, not financial advice. · how much to retire · the 15% rule
Full Social Security age is 67 if born 1960+
Ramsey: 15% of gross pay
Ramsey uses 10–12%; 7% is a common conservative case
Optional — checks the 15% rule
Added on top; not part of your 15%
Raises keep you at 15%
Ramsey 8% · 4% rule · Morningstar 3.9%
Nest egg at age 67
$6,828,425
$2,287,406 in today’s dollars
You put in
$413,500
over 37 years
Compound growth
$6,414,925
94% of the final balance
You’re investing 15.0% of gross income. Ramsey’s Baby Step 4 target is 15% = $875/month — you’re on track.
Retirement income from $6,828,425
| Withdrawal rule | Per year | Per month | Per year, today’s $ |
|---|---|---|---|
| Your rate (8%) | $546,274 | $45,523 | $182,992 |
| 4% rule (4%) | $273,137 | $22,761 | $91,496 |
| Morningstar 3.9% (3.9%) | $266,309 | $22,192 | $89,209 |
Balance by age (11% return)
Same plan at different returns
6%
$1.66M
7%
$2.17M
8%
$2.85M
10%
$5.07M
11%
$6.83M
12%
$9.24M
The Dave Ramsey retirement method is Baby Step 4 of Ramsey’s 7 Baby Steps: once you are debt-free except the mortgage and have a 3–6 month emergency fund, invest 15% of gross household income in tax-advantaged retirement accounts, in the order employer match, then Roth, then traditional. Ramsey Solutions projects growth at 10–12% a year in growth stock mutual funds and says retirees can withdraw about 8% a year — a rate most researchers consider too high.
The projection compounds monthly: every month the balance grows by the annual return ÷ 12 and the new contribution is added. That reproduces Ramsey Solutions’ own numbers — $1,042 a month for 30 years at 11% = $2,922,310 (Ramsey: $2.92 million). The retirement number is annual income × (1 + inflation)years ÷ withdrawal rate: $120,000 × 1.0330 ÷ 0.08 = $3,640,894, Ramsey’s $3.64 million example.
Balance from a fixed monthly investment starting at $0, compounded monthly. 11% is Ramsey’s assumption; 7% is a common conservative planning return (roughly the long-run stock return after inflation).
| Monthly | 20 yrs @ 11% | 30 yrs @ 11% | 40 yrs @ 11% | 30 yrs @ 7% | 40 yrs @ 7% |
|---|---|---|---|---|---|
| $250 | $216k | $701k | $2.15M | $305k | $656k |
| $500 | $433k | $1.40M | $4.30M | $610k | $1.31M |
| $875 | $757k | $2.45M | $7.53M | $1.07M | $2.30M |
| $1,000 | $866k | $2.80M | $8.60M | $1.22M | $2.62M |
| $1,500 | $1.30M | $4.21M | $12.9M | $1.83M | $3.94M |
| $2,000 | $1.73M | $5.61M | $17.2M | $2.44M | $5.25M |
Single filer, 4% employer match, 2026 limits. The match is added on top and is not part of the 15%. Roth IRA amounts shrink above $153,000 of income and stop at $168,000.
| Gross income | 15% per year | Per month | Per biweekly check | Into 401(k) | Into Roth IRA |
|---|---|---|---|---|---|
| $40,000 | $6,000 | $500 | $231 | $1,600 | $4,400 |
| $50,000 | $7,500 | $625 | $288 | $2,000 | $5,500 |
| $60,000 | $9,000 | $750 | $346 | $2,400 | $6,600 |
| $75,000 | $11,250 | $938 | $433 | $3,750 | $7,500 |
| $83,000 | $12,450 | $1,038 | $479 | $4,950 | $7,500 |
| $100,000 | $15,000 | $1,250 | $577 | $7,500 | $7,500 |
| $125,000 | $18,750 | $1,563 | $721 | $11,250 | $7,500 |
| $150,000 | $22,500 | $1,875 | $865 | $15,000 | $7,500 |
| $200,000 | $30,000 | $2,500 | $1,154 | $24,500 | $0 |
$1,000 a month for 30 years, and the income each balance supports.
| Annual return | Balance | Income at 8% | Income at 4% |
|---|---|---|---|
| 6% | $1,004,515 | $80,361 | $40,181 |
| 7% (conservative) | $1,219,971 | $97,598 | $48,799 |
| 8% | $1,490,359 | $119,229 | $59,614 |
| 10% | $2,260,488 | $180,839 | $90,420 |
| 11% (Ramsey) | $2,804,520 | $224,362 | $112,181 |
| 12% | $3,494,964 | $279,597 | $139,799 |
Starting from $0 with monthly compounding.
| Monthly | At 11% | At 7% |
|---|---|---|
| $500 | 27.1 years | 36.4 years |
| $875 | 22.3 years | 29.3 years |
| $1,000 | 21.3 years | 27.6 years |
| $1,500 | 17.9 years | 22.8 years |
| $2,000 | 15.8 years | 19.6 years |
Year-one income from each nest egg. Ramsey says 8% (12% return − 4% inflation). Morningstar’s 2026 research puts the safe starting rate at 3.9% for a fixed, inflation-adjusted 30-year plan, or up to 5.7% if you cut spending after bad years. Morningstar’s historical test of Ramsey’s 8% found a 100% stock portfolio lasted 30 years only 55% of the time.
| Nest egg | Ramsey 8% | Flexible 5.7% | 4% rule | Morningstar 3.9% |
|---|---|---|---|---|
| $500,000 | $40,000 ($3,333/mo) | $28,500 ($2,375/mo) | $20,000 ($1,667/mo) | $19,500 ($1,625/mo) |
| $1,000,000 | $80,000 ($6,667/mo) | $57,000 ($4,750/mo) | $40,000 ($3,333/mo) | $39,000 ($3,250/mo) |
| $2,000,000 | $160,000 ($13,333/mo) | $114,000 ($9,500/mo) | $80,000 ($6,667/mo) | $78,000 ($6,500/mo) |
| $3,000,000 | $240,000 ($20,000/mo) | $171,000 ($14,250/mo) | $120,000 ($10,000/mo) | $117,000 ($9,750/mo) |
| $5,000,000 | $400,000 ($33,333/mo) | $285,000 ($23,750/mo) | $200,000 ($16,667/mo) | $195,000 ($16,250/mo) |
Retiring in 30 years with $25,000 saved, 11% return and 3% inflation (Ramsey’s example inputs). Monthly investment is what it takes to reach the goal.
| Income wanted (today’s $) | Same income in 30 yrs | Goal at 8% | Invest/mo (8%) | Goal at 4% | Invest/mo (4%) |
|---|---|---|---|---|---|
| $4,000 | $9,709 | $1,456,357 | $281 | $2,912,715 | $800 |
| $6,000 | $14,564 | $2,184,536 | $541 | $4,369,072 | $1,320 |
| $8,000 | $19,418 | $2,912,715 | $800 | $5,825,430 | $1,839 |
| $10,000 | $24,273 | $3,640,894 | $1,060 | $7,281,787 | $2,358 |
| Account | 2026 limit |
|---|---|
| 401(k), 403(b), 457, TSP | $24,500 |
| Catch-up, age 50+ | +$8,000 |
| Catch-up, ages 60–63 | +$11,250 |
| IRA (Roth + traditional combined) | $7,500 |
| IRA catch-up, age 50+ | +$1,100 |
| Roth IRA phase-out, single | $153,000–$168,000 |
| Roth IRA phase-out, married joint | $242,000–$252,000 |
| Assumption | Ramsey | Mainstream |
|---|---|---|
| Savings rate | 15% of gross, match extra | 10–15% including match |
| Return | 10–12% (11% here) | 6–7% nominal for a mixed portfolio |
| Withdrawal rate | 8% | 4% rule; Morningstar 3.9% |
| Portfolio | 100% growth stock mutual funds | Stocks plus bonds, shifting with age |
| Account order | Match → Roth → traditional | Match → tax-optimal mix |
| Before investing | Debt-free except mortgage + 3–6 month fund | Invest for the match even with debt |
Working Baby Steps 4, 5 and 6 at the same time is normal — the 15% keeps going while you save for college and pay extra on the mortgage.
The projection reproduces Ramsey Solutions’ 15% table ($1,042/month → $2.92 million and $346/month → $970,363 over 30 years at 11%) and its $3,640,900 retirement-number example. Contribution limits come from IRS Notice 2025-67. Every table on this page is generated by the same code as the calculator. Taxes, fees and year-to-year market swings are not modeled.
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