Retirement Withdrawal Calculator
The Retirement Withdrawal Calculator simulates how long a retirement balance lasts given annual withdrawals and investment returns, and flags whether your withdrawal rate is sustainable indefinitely.
What this means
Your money lasts as long as withdrawals are balanced by returns. If you withdraw more than the balance earns, the account slowly drains — this calculator shows exactly how long.
How we calculate it
Formula
Balance each month = balance × (1 + monthly rate) − monthly withdrawal, until depleted.Worked example
$1,000,000 with $60,000/yr withdrawals and 5% return:
- 1Monthly return 0.4167%, withdrawal $5,000/mo
- 2Money lasts about 431 months (~35.9 years)
- 3This exceeds the $60,000/yr threshold — plan accordingly
Important assumptions
- Returns are constant and withdrawals are made monthly.
- No inflation or tax adjustments are applied.
Frequently asked questions
What is a safe withdrawal rate?
A common rule of thumb is 4% of your balance per year, adjusted historically to survive long retirements. Lower rates are more conservative.
What if my plan says money runs out?
You can reduce withdrawals, delay retirement, increase returns (with more risk), or plan part-time income. Running these scenarios early helps you adjust while there's still time.