Income Replacement Ratio
Use the Income Replacement Ratio. Enter Retirement income and Pre-retirement income for a clear result, formula explanation, and practical planning checks.
Income Replacement Ratio measurements
Enter your values, then calculate.
Result
How to calculate income replacement ratio
Income replacement ratio measures what percentage of pre-retirement income a retirement plan is expected to replace — a common retirement planning benchmark.
How the calculation works
Income replacement ratio = (Retirement income ÷ Pre-retirement income) × 100.
Example
$60,000 expected retirement income against $85,000 pre-retirement income: (60,000÷85,000)×100 ≈ 70.6%.
Frequently asked questions
How is Result calculated?
Result = [Retirement income] ÷ [Pre-retirement income] × 100.
Is the Income Replacement Ratio free to use?
Yes — every calculator on Simple Calculator Tools is free, runs in your browser, and does not require an account.
Income Replacement Ratio
Income replacement ratio = (Retirement income ÷ Pre-retirement income) × 100.
Let's understand your income replacement ratio result.
Calculate a result above and this guide will help you interpret it using this calculator's own formula and explanation.
Pro Tips for Income Replacement Ratio
- Commonly cited target replacement ratios range from 70-90% of pre-retirement income, though the right target depends on individual expenses and lifestyle goals in retirement.
- Lower expenses in retirement (no more commuting costs, mortgage paid off) can mean a somewhat lower ratio is still adequate for some households.
Common Income Replacement Ratio Mistakes to Avoid
- Applying a generic target replacement ratio without considering how your specific expected retirement expenses compare to pre-retirement spending.
When to Use This Calculator
Income replacement ratio measures what percentage of pre-retirement income a retirement plan is expected to replace — a common retirement planning benchmark.