Retirement Withdrawal Calculator
How long could the money last?
Test a withdrawal plan against an assumed return and inflation. See the balance year by year, the total withdrawn and whether the money lasts.
- Free, no sign-up
- Runs in your browser
- Shareable results
- Educational only
Your withdrawal plan.
Rises with inflation each year.
Withdrawals are taken at the start of each year and rise with inflation. These are hypothetical assumptions for learning, not forecasts or expected results for any investment.
Result
The balance over time.
View the year-by-year table
What the numbers mean.
Order of returns matters.
Poor returns early in retirement hurt far more than poor returns later, because withdrawals shrink the base that has to recover. This steady model hides that risk.
Inflation raises the bill.
A withdrawal that rises with prices takes a growing share of a portfolio that is not growing as fast.
A starting rate is not a rule.
Rates such as four percent are often quoted as a starting point for discussion. Your own situation, other income and flexibility matter more.
About this retirement withdrawal calculator.
A retirement withdrawal calculator tests whether a portfolio could support the spending you plan. Enter your starting portfolio, your first-year withdrawal, the yearly inflation rate your spending rises with, an assumed yearly return and the number of years. The calculator shows the balance year by year, the total withdrawn and how long the money lasts.
The first-year withdrawal as a share of the portfolio is often called the withdrawal rate, and a 4% starting rate is a common rule of thumb, not a guarantee. Inflation matters because spending has to rise to keep its buying power. Read inflation and investing and compound interest examples, and use the income goal calculator to work out the capital needed for a target income.
How the retirement withdrawal calculator works in practice.
You retire with $500,000 and take $20,000 in the first year (a 4.00% withdrawal rate), raising it each year with 2.5% inflation. The portfolio earns 5% a year and you plan for 30 years.
Balance after 30 years: $292,496
Total withdrawn: $878,054
Withdrawal in the final year: $40,928
Balance halfway: $509,735
Small changes make a big difference. Raise the first-year withdrawal to $32,000 (6.40%) and the money runs out in about 19.3 years. Keep $20,000 but assume a 3% return and it lasts about 26.6 years. Stretching the plan to 40 years at 5% gives about 37.5 years. Testing a range of returns is the point of the tool.
How to choose your inputs.
Starting portfolio. The amount available for withdrawals when the plan begins.
First-year withdrawal. How much you take in year one. It rises each year with inflation.
Yearly inflation. The rate your spending is assumed to rise. Test a few values.
Assumed yearly return. Use a cautious figure after fees, and test lower ones.
Years of withdrawals. Plan past your expected lifespan. A long retirement is the case that most needs testing.
How the retirement withdrawal calculator works.
Each year the calculator takes the planned withdrawal from the balance, then grows what is left at your assumed return. The withdrawal rises each year with inflation.
Balance after year k = (balance − withdrawal) × (1 + return)
The plan fails in the year the withdrawal exceeds the balance
Returns and inflation are steady, and taxes, other income and spending changes are excluded. Real returns vary year by year, which can change the outcome sharply.
Limits of this retirement withdrawal calculator.
The model uses the same return and inflation every year. Real returns arrive in an uneven order, and poor returns early in retirement do more damage than the same returns later, a risk this calculator does not show. It ignores taxes, fees, pensions and other income, one-off costs and changes in how much you spend. Use it to test ideas, and talk to a qualified adviser before relying on a plan.
Common questions about the retirement withdrawal calculator.
Is this a safe withdrawal rate calculator?
It tests one set of steady assumptions. It does not prove a rate is safe, because real markets are uneven.
Why do withdrawals rise?
To keep your spending power constant as prices rise. You can set inflation to zero for flat withdrawals.
What return should I use?
Use a cautious figure and test lower ones. The weaker-returns preset shows how sensitive the result is.
Does it include pensions or other income?
No. Subtract other income from your spending to find the amount the portfolio must supply.
What is a safe withdrawal rate?
There is no rate that is safe in every case. A starting rate near 4% is a common reference point, but results depend on returns, inflation and how long you need the money to last. Test several in the calculator.
How long will my retirement savings last?
It depends on the portfolio, the withdrawal, inflation and returns. Enter your own figures and the calculator shows the balance each year and when it would run out, if it does.
What is the 4% rule?
It is a rule of thumb that suggests withdrawing 4% of a portfolio in the first year and raising the amount with inflation after that. It is a guide drawn from past data, not a guarantee.
Why does inflation matter in retirement?
Prices rise over time, so you need to withdraw more each year to buy the same things. The calculator raises each withdrawal by the inflation rate you enter.
More calculators.
Educational illustration only, not retirement or financial advice. Returns and inflation are steady, and taxes, fees and other income are excluded.
Further learning: Inflation and investing · Compound interest examples · Income Goal Calculator · Investor.gov: Financial tools and calculators · Research methodology · Financial disclaimer