Saving for retirement is a growth problem. Spending in retirement is a drawdown problem: money goes out every month, the rest keeps earning, and the question is which runs out first. This retirement withdrawal calculator answers it two ways. It can show how long a balance lasts at the spending level you choose, or the most you can withdraw so the money lasts a set number of years, with withdrawals that rise each year to keep pace with inflation.
How to use the retirement withdrawal calculator
- Choose what to find: how long my money lasts or how much I can withdraw.
- Enter your savings at the start of retirement.
- Enter the first-year withdrawal, or the number of years the money must last.
- Choose monthly or yearly withdrawals, and set the annual return you expect on the remaining balance.
- Enter how much to raise withdrawals each year, usually your inflation assumption.
The year-by-year table shows each year’s starting balance, the total withdrawn, investment growth and the ending balance. The chart plots the balance against rising withdrawals.
How the drawdown is calculated
Withdrawals come out at the start of each period, and what is left earns the return for that period. With monthly withdrawals the annual return becomes a monthly rate:
Each year’s withdrawal is the previous year’s times (1 + inflation). For “how much can I withdraw,” the calculator searches for the largest first-year amount that leaves exactly zero at the end of your time frame. That amount is the present value of a growing annuity paid in advance.
Worked example
You retire with $800,000, expect a 5% return and plan to withdraw $40,000 in the first year ($3,333.33 a month), rising 2.5% a year.
- The money lasts 27 years and 8 months.
- By year 28 the yearly withdrawal has grown to $77,912 just to keep the same buying power.
- You withdraw $1,570,181 in total. The $770,181 more than you started with came from investment growth.
To make the money last exactly 30 years instead, switch to how much I can withdraw. The answer is $37,842.58 in year one, a 4.73% starting rate. At a 4% return it drops to $33,251.19.
Withdrawal rate vs. how long $800,000 lasts
5% return, withdrawals rising 2.5% a year, taken monthly:
| Year-one withdrawal | Rate | Money lasts |
|---|---|---|
| $24,000 | 3% | 69 years, 3 months |
| $32,000 | 4% | 38 years, 11 months |
| $40,000 | 5% | 27 years, 8 months |
| $48,000 | 6% | 21 years, 7 months |
| $56,000 | 7% | 17 years, 9 months |
| $64,000 | 8% | 15 years, 1 month |
Each extra percentage point of withdrawal costs years of runway. The first points cost the most.
Making the plan sturdier
- Count guaranteed income first. Social Security, pensions and annuity payments reduce how much the portfolio has to supply. Estimate your benefit with the Social Security calculator.
- Stay flexible. Cutting withdrawals after a bad market year, even briefly, does a lot to protect the plan against sequence risk.
- Plan for taxes. Withdrawals from traditional IRAs and 401(k)s are taxable, so the gross amount must cover your tax bill too. Required minimum distributions can force larger withdrawals later; see the RMD calculator.
- Consider annuitizing part of it. The annuity payout calculator shows what a lump sum pays as fixed income.
If you are still saving, the retirement savings calculator projects the nest egg you will start with. The FIRE calculator works backward from your spending to the balance you need.
Estimates only, not financial advice. Real returns vary, inflation changes, and taxes and fees are not included.
Frequently asked questions
How long will $800,000 last in retirement?
At a 5% annual return, withdrawing $40,000 in the first year and raising it 2.5% a year for inflation, $800,000 lasts about 27 years and 8 months. Withdrawing $32,000, which is 4%, stretches it to about 38 years and 11 months.
What is a safe withdrawal rate?
The well-known 4% guideline comes from studies of historical US stock and bond returns. It found that withdrawing 4% of the starting balance and then raising the amount with inflation survived most 30-year periods. It is a starting point, not a guarantee, and some planners use 3% to 3.5% for longer retirements.
Why do my withdrawals go up each year?
Raising withdrawals with inflation keeps your purchasing power constant. At 2.5% inflation, a $40,000 budget needs about $77,900 in year 28 to buy the same things. Set the inflation field to 0 to model fixed-dollar withdrawals instead.
Does the order of returns matter?
Yes. This calculator uses a steady return. In real markets, losses early in retirement hurt more than the same losses later, because you are selling investments while they are down. This is called sequence-of-returns risk, and it is why many retirees keep a cash or bond buffer.