ConverterHub

Retirement Withdrawal Calculator

Enter your savings, annual withdrawal, and expected return to find how long the money lasts.

How it is calculated

Each simulated year the balance first earns the return and then the fixed withdrawal is taken out: balance = balance × (1 + r) − W, with r = annual return ÷ 100 and W the yearly withdrawal in dollars. In the final year the tool withdraws only what is left, so the last withdrawal can be smaller than W. If W ≤ savings × r, the return alone covers the withdrawal and the tool says the savings never deplete instead of giving a number. The simulation stops at 100 years; if money is still left then, it reports "More than 100 years". Savings and the withdrawal must be above zero and the return cannot be negative (0 is allowed); otherwise there is no result.

The withdrawal stays the same every year, so there is no inflation adjustment, and the return is a constant yearly rate, with no good or bad years. The total withdrawn is the sum of the actual withdrawals. Taxes are not modelled.

Worked example

Start with $800,000, withdraw $50,000 a year, and assume a 4% return. Interest alone would be 800,000 × 0.04 = $32,000, which is less than $50,000, so the balance shrinks. After year 1 it is 800,000 × 1.04 − 50,000 = $782,000, and it keeps falling: about $50,400 after year 25 and about $2,400 after year 26. In year 27 the balance grows to about $2,484 and only that is withdrawn. The tool reports 27 years and a total withdrawn of $1,302,484.14 (26 × $50,000 plus the final partial year).

Try this example →

Common mistakes

  • Entering a withdrawal rate (such as 4) in the dollar field. The field takes a yearly dollar amount, not a percent of the balance.
  • Ignoring inflation. The withdrawal is flat, so $50,000 buys less each year, and a retiree who raises withdrawals with prices will run out sooner than shown.
  • Using a high return as a certain yearly rate. Poor early years hurt much more than a steady average suggests, and this tool only uses one constant rate.
  • Reading "Savings never deplete" as a guarantee. It means only that withdrawal does not exceed interest at the return you typed.
  • Entering a negative return to model a bad market. A return below 0 is not accepted, so use 0 as the most cautious case.

About this calculator

This calculator estimates how many years a retirement balance will last under a fixed annual withdrawal, factoring in the return the remaining balance keeps earning each year. Unlike the popular "4% rule," which sets the withdrawal as a percentage of the starting balance and adjusts it for inflation, this model lets you specify any fixed dollar withdrawal and any expected return, then depletes the balance year by year until it runs out.

This distinction matters because a withdrawal rate that looks sustainable in isolation can drain savings far faster than expected if the expected return is too optimistic or if the withdrawal doesn't shrink when the market underperforms — sequence-of-returns risk is one of the biggest threats to a retirement plan's longevity.

Was this helpful?

You can pick up to 3 reactions.

Comments

  • Be the first to comment.

Popular calculators

Loan Calculator

Monthly payment, total interest and full amortization schedule.

Percentage Calculator

Percent change, percent of, and ratio calculations.

Discount Calculator

Calculate final price, savings, and discount amount.

BMI Calculator

Body mass index from height and weight (metric or imperial).

Age Calculator

Compute your exact age in years, months and days from a birth date.

Compound Interest Calculator

Calculate the final amount and interest earned with compounding.

All Calculators