Savings Withdrawal Calculator
Free savings withdrawal calculator: see how long your savings last with monthly or yearly withdrawals, or the most you can withdraw for a set number of years.
First withdrawal, before any inflation increase
Years
After fees; hypothetical
Year-by-year projection
| Year | Start balance | Withdrawn | Growth | End balance |
|---|
About this calculator
Once you stop adding to your savings and start living on them, the question changes from “how much will I have?” to “how long will it last?”. This savings withdrawal calculator answers both versions of that question for a retirement account, an inheritance or any pot of savings that earns a return while you draw it down.
In the first mode, enter a starting balance, a monthly or yearly withdrawal and an expected return, and it tells you how many years and months the money lasts — or that it lasts indefinitely, if growth covers your withdrawals. In the second mode, enter how many years the money must last and it tells you the most you can withdraw.
Either way you can raise the withdrawal every year with inflation, so the figures reflect constant spending power rather than a fixed dollar amount. A chart and a year-by-year table show the balance as it runs down.
When does the money last forever?
If you withdraw no more than your savings earn, the balance never falls. With monthly withdrawals taken at the start of each month, that happens when the withdrawal is no more than B × r ÷ (1 + r), where B is the balance and r the monthly return. On $500,000 earning 5% a year, that is a little over $2,000 a month.
With withdrawals that rise with inflation the bar is higher: the return has to exceed inflation, and the withdrawal has to be covered by the real (after-inflation) return. If inflation is equal to or above the return, inflation-adjusted withdrawals always run the balance down eventually.
How to use it
- Choose “How long the money lasts” or “How much I can withdraw”.
- Enter the starting balance.
- Enter the withdrawal amount and choose monthly or yearly (first mode), or the number of years the money must last (second mode).
- Enter an expected annual return. Use a conservative figure after fees; spending down savings leaves less room to wait out a bad market.
- Tick “Raise withdrawals with inflation” and enter an inflation rate if you want the same spending power every year.
- Read the result, the chart and the year-by-year table. Change one input at a time to see what matters most.
How the calculation works
Month by month
balance = (balance − W) × (1 + r), r = (1 + R)^(1/12) − 1Each withdrawal W comes out at the start of the period, then the rest earns a month’s growth. Yearly withdrawals come out at the start of each year and the rest grows by R. With the inflation option, W rises by the inflation rate at the start of each new year.
How many withdrawals (no inflation adjustment)
n = −ln(1 − B × r ÷ (W × (1 + r))) ÷ ln(1 + r)The number of monthly withdrawals of W that a balance B supports at monthly return r. If the term inside the logarithm is zero or negative, growth covers the withdrawals and the money lasts indefinitely. At a 0% return it is simply n = B ÷ W.
Most you can withdraw for N years (no inflation adjustment)
W = B × r ÷ ((1 + r) × (1 − (1 + r)^(−12N)))The withdrawal that brings the balance to exactly zero after N years of monthly withdrawals. With inflation adjustment the calculator solves the same problem in today’s dollars, using the real return (1 + R) ÷ (1 + inflation) − 1.
Withdrawal rate
withdrawal rate = first year’s withdrawals ÷ starting balanceA quick way to compare plans. The well-known “4% rule” comes from historical studies of a 30-year retirement with inflation-adjusted withdrawals; it is a starting point for discussion, not a guarantee.
Worked examples
Example 1: $2,500 a month from $500,000
You have $500,000 and want to withdraw $2,500 at the start of every month. The money earns 5% a year. How long does it last, with and without inflation increases?
- Monthly return: r = (1 + 5%)^(1/12) − 1 = 0.4074%.
- Largest withdrawal that lasts forever: B × r ÷ (1 + r) = $2,028.80 a month. $2,500 is more than that, so the balance will run out.
- Number of withdrawals: B × r ÷ (W × (1 + r)) = 0.8115, so n = −ln(1 − 0.8115) ÷ ln(1 + r) = 410.43 months.
- In practice that is 410 full withdrawals of $2,500 and a final partial withdrawal of $1,082.39: 34 years and 2 months, with $1,026,082 withdrawn in total.
- If instead the withdrawal rises 3% a year with inflation, the money lasts 20 years and 4 months. The largest inflation-adjusted withdrawal that lasts forever would be only $811.52 a month.
Result: With fixed withdrawals the money lasts about 34 years and 2 months; with inflation increases, about 20 years and 4 months. Whether that is enough depends on your age and other income.
Example 2: making $300,000 last 25 years
You have $300,000, expect a 4% return and want the money to last exactly 25 years, with monthly withdrawals that rise 2.5% a year with inflation.
- The calculator solves for the first withdrawal that leaves exactly $0 after 25 years: $1,205.35 a month.
- That is $14,464 in the first year, a first-year withdrawal rate of 4.82%.
- Because of inflation increases, the monthly withdrawal in the final year is $2,180.14.
- Total withdrawn over 25 years: $494,064. Without inflation increases you could start higher, at $1,566.56 a month, but its spending power would shrink every year.
Result: Start at $1,205.35 a month and raise it with inflation each year. The balance reaches zero at the end of year 25 if returns and inflation match the assumptions.
Assumptions
- The return is constant every year. Real returns vary, and a market fall early in retirement (“sequence-of-returns risk”) can shorten how long the money lasts even if the average return is the same.
- Withdrawals are taken at the start of each month or year. Taking them at the end would make the money last slightly longer.
- With inflation adjustment, the withdrawal increases once a year by the inflation rate you enter.
- Taxes are not modelled. Withdrawals from traditional 401(k), 403(b) and 457(b) accounts are taxable income, so the amount you can spend is lower than the amount you withdraw. Required minimum distributions may force larger withdrawals later in life.
- The calculation stops at 100 years.
What the result means
“Lasts X years Y months” counts until the balance can no longer cover a full withdrawal. The last, partial withdrawal is shown separately.
“Lasts indefinitely” means growth at least covers withdrawals at the assumptions entered. It is not a guarantee — a lower return or higher inflation can change it — but it shows your withdrawal is sustainable on average.
The first-year withdrawal rate lets you compare against common benchmarks. Rates around 3–4% with inflation increases have historically been considered cautious for a 30-year retirement; much higher rates depend on strong returns or a shorter horizon.
To see how big a balance you might have at retirement, use the 403(b) calculator, the 457(b) calculator or the 401(k) contribution calculator.
Common mistakes
- Using a high expected return. Money you are spending has less time to recover from losses; many people use a lower, more conservative return in retirement.
- Ignoring inflation. A fixed $3,000 a month buys much less after 20 years of 3% inflation — roughly what $1,660 buys today.
- Forgetting taxes. A $4,000 withdrawal from a pre-tax account is not $4,000 of spending money.
- Planning for an exact life expectancy. Many people live well past average; plan for the money to last longer than you expect to need it.
- Treating “lasts indefinitely” as safe at any return. It is only true at the return you entered.
Frequently asked questions
How long will my savings last?
It depends on four things: the balance, the withdrawal, the return and whether withdrawals rise with inflation. At a 0% return, $100,000 withdrawn at $1,000 a month lasts exactly 100 months. Any positive return stretches that; inflation increases shorten it. Enter your own figures above for an exact answer.
How much can I withdraw so my money never runs out?
Without inflation increases, up to the balance’s monthly growth: B × r ÷ (1 + r) per month, where r is the monthly return. With inflation increases you need the real return, so the amount is smaller. The calculator shows this figure as “Largest withdrawal that lasts indefinitely”.
What is the 4% rule?
A rule of thumb from historical U.S. market studies: withdrawing 4% of your savings in the first year of retirement and raising that amount with inflation each year has historically lasted at least 30 years in most periods tested. It is a guideline, not a guarantee, and does not account for your taxes, fees or a longer retirement.
Should withdrawals be monthly or yearly?
It makes only a small difference to how long the money lasts. Yearly withdrawals taken at the start of the year leave less money invested during the year, so they run out slightly sooner than the same total taken monthly. Choose whatever matches how you will actually draw the money.
Does this account for taxes and required minimum distributions?
No. Enter the gross amount you plan to withdraw. Withdrawals from pre-tax retirement accounts are taxed as income, and required minimum distributions may require you to withdraw more than you need in later years.
Can I use this for a pension lump sum or an inheritance?
Yes. Any balance you plan to draw down while it earns a return works the same way. For money in a 403(b), 457(b) or 401(k), remember that early withdrawals can carry a 10% additional tax before 59½ (governmental 457(b) plans are an exception).
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Disclaimer
This calculator is for education and illustration only. Results are hypothetical projections that depend entirely on the inputs and the constant rate of return you enter; real investment returns vary from year to year and can be negative. Nothing on this page is investment, tax or legal advice. Check your plan’s documents and consider speaking with a qualified financial professional or tax adviser before making decisions.