Retirement Withdrawal Calculator

How long your savings last depends on your account balance, how much you withdraw each month, your investment return rate, inflation, and taxes. This calculator combines all those factors to give you a personalized estimate. For example, $500,000 earning 6% annually with $3,000 monthly withdrawals may last around 25–30 years depending on inflation and taxes.

The 4% rule is a popular retirement guideline suggesting you withdraw no more than 4% of your total savings in the first year, then adjust for inflation each subsequent year. This approach is designed to make your money last at least 30 years. For a $500,000 portfolio, that means starting with $20,000 per year or roughly $1,667 per month.

Yes, inflation significantly reduces your purchasing power over time. Even at a modest 2.5% annual inflation rate, your $3,000 monthly withdrawal today will only buy what $2,357 buys today in 10 years. The calculator accounts for inflation by adjusting your effective withdrawal amount each year, giving you a more realistic projection.

Yes, entering your expected Social Security or pension income in the 'Additional Income' field reduces the amount you need to withdraw from savings each month. This can dramatically extend how long your savings last. For instance, $1,500/month in Social Security reduces your required savings withdrawal by the same amount.

Yes, withdrawals from traditional 401(k) plans and IRAs are generally taxed as ordinary income. The tax rate field in this calculator lets you account for that. Roth IRA withdrawals, however, are typically tax-free in retirement if you meet the requirements — if that's your situation, you can set the tax rate to 0%.

A common assumption for a balanced portfolio is 5–7% annual return. Conservative portfolios (mostly bonds) might use 3–4%, while more aggressive stock-heavy portfolios might use 7–9%. Financial planners often recommend using a conservative estimate to avoid outliving your savings. The historical average return of the S&P 500 is around 10% before inflation.

If your savings are depleted before your expected lifespan, you'll need to rely solely on Social Security, pensions, or other income sources. To avoid this, consider reducing withdrawals, working part-time in early retirement, delaying retirement, or adjusting your investment strategy to generate higher returns. This calculator helps you identify the shortfall before it becomes a crisis.

Key strategies include withdrawing less each month, maintaining a diversified investment portfolio for continued growth, delaying Social Security to maximize benefits, reducing discretionary spending in early retirement years, and considering annuities for guaranteed lifetime income. Even reducing monthly withdrawals by $200–$300 can add several years to your retirement runway.