Retirement Withdrawal Calculator
This retirement withdrawal calculator shows how long your savings last at a fixed monthly amount. With 300,000 saved, 1,200 withdrawn a month, a 4% return and a 2% yearly increase, the money lasts 27 years.
Example: What do you want to know: How long will the savings last? · Savings at the start 300,000 · Monthly withdrawal (at the start) 1,200 · Return per year (after fees) 4 % · Yearly increase of the withdrawal 2 % → Result: The savings last 27 years. Source: Wikipedia – Annuity: present value of a series of payments. Updated: .
How it is calculated
How the retirement withdrawal calculator works
At the start of each month the withdrawal is taken out, then the rest earns the monthly return. Every year the withdrawal rises by the increase you set, so purchasing power is kept. If the money is not enough, the calculator shows the month in which it runs out.
Two questions, one calculator
- How long will the savings last? You set the monthly amount and the calculator gives the duration.
- How much can I withdraw? You set the duration and the calculator gives the highest first monthly amount that uses the money up exactly.
The 4% rule
As a rule of thumb, withdrawing about 4% of the savings in the first year and then adjusting for inflation lasted 30 years in most historical US data (Trinity study). The calculator shows your withdrawal rate for comparison. It is an empirical rule from the past, not a guarantee.
What the calculator cannot do
It uses a constant return. In reality markets swing, and bad years at the start of the withdrawal phase weigh heavily. Taxes, social contributions and pensions from other sources are not included.
Frequently asked questions
How do you calculate a withdrawal plan?
Month by month: take out the withdrawal, apply the return to the rest, raise the withdrawal yearly. The calculator runs this loop and gives the duration or the possible amount.
How long do 300,000 last at 1,200 a month?
At a 4% return and a 2% yearly increase, 27 years. With no return and no increase it would be 250 months, a little over 20 years.
What is the 4% rule?
Withdraw 4% of the savings in year one and raise the amount with inflation afterwards. In historical US data this lasted 30 years most of the time. It is not guaranteed.
Should I adjust withdrawals for inflation?
If you want constant purchasing power, yes. Enter expected inflation as the increase. Zero shows a constant nominal amount.
Are taxes included?
No. Taxes on returns and withdrawals depend on your situation. Use a return after tax if needed.
Sources and legal basis
- Wikipedia – Annuity: present value of a series of payments
- Wikipedia – Trinity study (safe withdrawal rates, the “4% rule”)
As of:
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