Enter the income required in retirement ($) and the pre-retirement income ($) into the Calculator. The calculator will evaluate the Retirement Ratio. 

Retirement Ratio Formula

RR = RIR / PRI * 100

Variables:

  • RR is the Retirement Ratio (%)
  • RIR is the income required in retirement ($)
  • PRI is the pre-retirement income ($)

To calculate the Retirement Ratio, divide the income required in retirement by the pre-retirement income.

How to Calculate Retirement Ratio?

The following steps outline how to calculate the Retirement Ratio.

  1. First, determine the income required in retirement ($). 
  2. Next, determine the pre-retirement income ($). 
  3. Next, gather the formula from above = RR = RIR / PRI * 100.
  4. Finally, calculate the Retirement Ratio.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

income required in retirement ($) = 5000

pre-retirement income ($) = 7000