How to use this calculator
Enter your current annual income and the number of years you have worked (or expect to work) through retirement. Select your birth year so the calculator can determine your full retirement age. The estimator uses these inputs to approximate your Average Indexed Monthly Earnings and apply the Social Security benefit formula.
The results show your estimated monthly benefit at three claiming ages: 62 (earliest eligibility), your full retirement age (typically 67), and age 70 (maximum delayed credits). A lifetime comparison chart helps you see which claiming age produces the highest total payout depending on how long you live.
Use the break even analysis to find the age at which delaying benefits overtakes claiming early. If you expect to live well past the break even point, waiting generally pays off. For the most accurate estimate, create an account at ssa.gov, which uses your actual 35 year earnings record.
How the Social Security benefit formula works
Social Security calculates your benefit using your highest 35 years of inflation adjusted earnings. Those earnings are averaged into a monthly figure called your Average Indexed Monthly Earnings (AIME). The SSA then applies a progressive formula with bend points that replaces 90% of the first portion of earnings, 32% of the middle portion, and 15% of the highest portion.
This progressive structure means lower earners replace a higher percentage of their pre retirement income than higher earners. The bend points are adjusted annually for wage growth. If you have fewer than 35 years of earnings, zeros are averaged in, which significantly reduces your benefit.
Frequently asked questions
How is Social Security calculated?
Your benefit is based on your highest 35 years of earnings, indexed for inflation and averaged monthly. The SSA applies a formula with bend points that replaces higher percentages of lower earnings and lower percentages of higher earnings.
How much is my benefit reduced at 62?
Claiming at 62 with a full retirement age of 67 reduces your benefit by 30%. This reduction is permanent and applies for the rest of your life. Each year you claim before FRA reduces your benefit by approximately 6% to 7%.
How much extra do I get waiting until 70?
You earn 8% per year in delayed retirement credits from age 67 to 70, resulting in a 24% higher monthly benefit. There is no additional credit after age 70, so there is no reason to wait past 70.
What is the maximum Social Security benefit?
The maximum in 2025 is approximately $4,018/month at FRA or about $5,108 at age 70. Achieving this requires earning at or above the taxable maximum ($176,100 in 2025) for at least 35 years.
When should I claim Social Security?
It depends on health, finances, and life expectancy. If you expect to live past your early 80s, delaying typically provides more total lifetime benefits. If you need income now or have health concerns, claiming earlier may be appropriate.