So you know you have to save for retirement, and that you need to save a whole lot for retirement, but how do you know just how much you’ll need to be comfortable in your later years? The Simple Dollar came up with a great equation for determining just how much you should need to save. It’s not perfect, of course. Everyone has a different lifestyle and different needs. But it’s a good place to start! Take a look:

1. Calculate 80% of the salary you currently make.
2. Factor in inflation by typing 1.03^(the number of year until you retire).
3. Multiply #1 and #2 to calculate what your salary will look like in the future with normal inflation.
4. Find what you’ll receive from Social Security on your Social Security statement. Subtract that number from the number you got in #3.
5. Multiply that final number (from #4) by 20.

Thanks to Lifehacker for the heads up on this!