Finance calculators

Retirement Withdrawal Calculator

Updated Jun 29, 2026 By Jehan Wadia
Formulas
Retirement Details
$
Combined 401(k), IRA, brokerage, etc.
$
Gross monthly spending target.
$
$
$
Rental, annuity, trust, part-time work, etc.
Drawdown horizon (1–60).
Used only for today's-dollar display.
$
Legacy target. $0 = full depletion.

Your Withdrawal Projection

Years Funds Last
Total Withdrawn
Across entire retirement
First-Year Withdrawal
in today's dollars
Safe Withdrawal Rate
Step-by-Step Solution
Portfolio Balance Over Time
Year-by-Year Schedule
Caution: balance below 25% of start   Depleted

Introduction

This retirement withdrawal calculator helps you figure out how long your savings will last after you stop working. Enter your total savings, how much you plan to spend each month, and any income you expect from Social Security, a pension, or other sources. The calculator runs a year-by-year simulation to show when your money could run out — or if it will last through your full retirement.

You will also see your safe withdrawal rate, a step-by-step breakdown of the math, a chart of your portfolio balance over time, and a detailed schedule of every year (or month) in retirement. Use the advanced settings to adjust for investment returns, inflation, and compounding frequency. Whether you are already retired or still planning ahead, this tool gives you a clear picture of your financial future.

How to Use Our Retirement Withdrawal Calculator

Enter your savings, income, and spending details below. The calculator will show how long your money may last, how much you can withdraw each year, and whether your plan is on track.

Retirement Savings Balance: Enter the total amount you have saved for retirement. This includes money in your 401(k), IRA, brokerage accounts, and any other savings you plan to use.

Monthly Income Needed: Enter the total amount you expect to spend each month in retirement. This is your gross monthly spending goal before any income sources are subtracted. If you need help organizing your expenses, try our budget calculator.

Monthly Social Security: Enter the Social Security benefit you expect to receive each month. If you are unsure, the national average is about $1,924 per month in 2026.

Monthly Pension Income: Enter any monthly pension payments you expect to receive. If you do not have a pension, leave this at $0.

Other Monthly Income: Enter any other monthly income you expect in retirement. This can include rental income, annuity payments, part-time work, or trust distributions.

Years in Retirement: Enter how many years you expect to be retired. This is the total number of years your savings need to support you. You can enter between 1 and 60 years. If you need help estimating your retirement length, our life expectancy calculator can be a useful starting point.

Years Until Retirement: Enter how many years from now until you retire. This is used to convert future dollars into today's dollars so you can see what your withdrawals are worth right now. Our present value calculator explains this concept in more detail.

Desired Remaining Balance: Enter how much money you want to have left at the end of retirement. Set this to $0 if you plan to spend it all. Set a higher number if you want to leave money behind.

Annual Income Increase (Spending): Found under Advanced Settings. Enter the percentage your spending is expected to grow each year. This accounts for rising costs over time. You can explore historical trends with our CPI inflation calculator.

Social Security Increase (COLA): Found under Advanced Settings. Enter the yearly cost-of-living adjustment you expect on your Social Security benefits.

Pension Increase (COLA): Found under Advanced Settings. Enter the yearly cost-of-living adjustment you expect on your pension payments.

Other Income Increase: Found under Advanced Settings. Enter the percentage your other income sources are expected to grow each year.

Annual Investment Return: Found under Advanced Settings. Enter the yearly return you expect your remaining savings to earn while invested during retirement. Our APY calculator can help you compare returns across different accounts.

Compounding Frequency: Found under Advanced Settings. Choose how often your investment return is applied. Options include daily, monthly, quarterly, semiannually, or annually. Learn more about how compounding works with our compound interest calculator.

Annual Inflation Rate: Enter the rate at which prices are expected to rise each year. This is used to show values in today's dollars. You can check recent inflation data using our inflation calculator.

Adjust Remaining Balance for Inflation: Found under Advanced Settings. Turn this on if you want your desired remaining balance to keep up with inflation. This treats your target as today's dollars and increases it to match future prices. Our future value calculator can show you how inflation erodes purchasing power over time.

What Is a Retirement Withdrawal Calculator?

A retirement withdrawal calculator helps you figure out how long your savings will last after you stop working. It looks at the money you have saved, the money you plan to spend each month, and any income you get from Social Security, a pension, or other sources. Then it shows you, year by year, how your balance changes over time. For a broader look at whether you are saving enough, our retirement calculator can help you plan the accumulation phase as well.

How Retirement Withdrawals Work

When you retire, you stop earning a paycheck. Instead, you pull money out of your savings accounts — like a 401(k) or IRA — to pay for things you need. This is called a withdrawal. The goal is to take out enough to live on without running out of money too soon. If you are subject to required minimum distributions, our RMD calculator can help you determine the minimum amount you must withdraw each year.

Your savings don't just sit still, though. The money left in your accounts can still earn interest or grow from investments. At the same time, inflation makes everything cost a little more each year. A good withdrawal plan balances what you take out against what your money earns so your funds last as long as you need them. Our how long will my money last calculator provides another way to stress-test your drawdown plan.

The 4% Rule

A common guideline in retirement planning is the 4% rule. It says that if you withdraw about 4% of your savings in your first year of retirement and adjust that amount for inflation each year after, your money has a strong chance of lasting 30 years. A withdrawal rate below 4% is generally safer. A rate above 4% carries more risk of running out early. This calculator shows your withdrawal rate so you can see where you stand. If you are pursuing early retirement, our FIRE calculator can help you determine the savings target you need to reach financial independence.

Why Fixed Income Matters

Not all of your retirement spending has to come from savings. Social Security, pensions, and other steady income sources cover part of your expenses. The more your fixed income covers, the less you need to pull from your portfolio. This calculator subtracts your fixed income from your spending needs and only withdraws the difference from your savings. An annuity calculator can help you evaluate whether purchasing an annuity to increase your guaranteed income makes sense for your situation.

Key Things That Affect Your Results

  • How much you have saved — A larger balance gives you more to draw from. Use our net worth calculator to get a complete picture of your assets and liabilities before retirement.
  • How much you spend — Lower spending makes your money last longer.
  • Investment returns — Earnings on your remaining balance help it grow, even as you withdraw. The Rule of 72 calculator is a quick way to estimate how fast your money doubles at a given rate of return.
  • Inflation — Rising prices mean you need more money each year to buy the same things.
  • How long you need the money — A longer retirement means your savings must stretch further.

By adjusting these inputs, you can test different scenarios and find a withdrawal plan that fits your needs. The earlier you plan, the more options you have to make your retirement savings last. If you are still in the saving phase, our Coast FIRE calculator can show you whether your current savings are enough to grow on their own by the time you retire.


Formulas used

Effective Monthly Growth Factor
F_m = \left(1 + \frac{r}{m}\right)^{\frac{m}{12}}
Year-y Annual Spending (with COLA)
\text{Spending}_y = (\text{Monthly Need} \times 12) \times (1 + g)^{y-1}
Net Annual Withdrawal from Portfolio
\text{Net}_y = \max\!\left(0,\; \text{Spending}_y - \text{Fixed Income}_y\right)
Monthly Balance Update (withdrawal then growth)
B_{t+1} = (B_t - w_t) \times F_m
Safe Withdrawal Rate
\text{SWR} = \frac{\text{Net}_1}{\text{Savings}} \times 100\%
First-Year Withdrawal in Today's Dollars
\text{PV} = \frac{\text{Net}_1}{(1 + i)^{t}}
Inflation-Adjusted Target Balance
\text{Target} = \text{Desired Remaining} \times (1 + i)^{N}

Frequently asked questions

What is a safe withdrawal rate?

A safe withdrawal rate is the percentage of your savings you take out in your first year of retirement. For example, if you have $500,000 and withdraw $20,000 in your first year, your withdrawal rate is 4%. A rate below 4% is generally considered safe. A rate above 4% means you may run out of money sooner.

How does this calculator figure out when my money runs out?

The calculator runs a month-by-month simulation. Each month it subtracts your withdrawal, adds any investment earnings, and tracks your remaining balance. It repeats this for every month across your full retirement horizon. When your balance hits your target (or $0), the calculator marks that year as the depletion point.

What does the net withdrawal from portfolio mean?

Your net withdrawal is the amount you need to pull from your savings each year. It equals your total spending minus your fixed income from Social Security, pensions, and other sources. For example, if you spend $48,000 a year and get $24,000 from Social Security, your net withdrawal is $24,000.

What does Nominal Dollars vs Real Dollars mean on the chart?

Nominal dollars are the actual dollar amounts in the future without any adjustment. Real dollars (today's dollars) adjust for inflation so you can see what your future money is actually worth in terms of buying power today. Use the real dollars view to get a more honest picture of your wealth over time.

Why is my first-year withdrawal shown in today's dollars?

If you are not yet retired, your first withdrawal happens in the future. Because of inflation, a dollar in the future buys less than a dollar today. The calculator converts your first-year withdrawal back to today's dollars so you can see what that amount is really worth right now.

What happens if I set years until retirement to zero?

Setting this to zero means you are already retired or retiring right now. The today's-dollar conversion has no effect because there is no inflation adjustment needed. Your first-year withdrawal amount stays the same in both nominal and today's dollar views.

What does the desired remaining balance do?

This is the amount of money you want left over at the end of retirement. Set it to $0 if you want to spend everything. Set a higher number if you want to leave money for family or charity. The calculator stops pulling from your savings once your balance reaches this target.

What does Adjust Remaining Balance for Inflation do?

When turned on, your desired remaining balance is treated as today's dollars. The calculator increases it by the inflation rate each year so it keeps the same buying power in the future. For example, a $100,000 target at 3% inflation over 25 years becomes about $209,378 in future dollars.

How does compounding frequency affect my results?

Compounding frequency controls how often your investment return is applied to your balance. More frequent compounding (like daily or monthly) earns slightly more than less frequent compounding (like annually) because you earn returns on your returns more often. The difference is usually small but grows over long time periods.

What do the yellow and red rows in the schedule table mean?

Yellow rows mean your balance has dropped below 25% of your starting savings. This is a caution warning. Red rows mean your portfolio has been fully depleted and you can no longer withdraw money from it. You would need to rely entirely on Social Security, pensions, or other income at that point.

Should I include taxes in my monthly income needed?

Yes. The monthly income needed field represents your gross spending target. Since withdrawals from traditional 401(k) and IRA accounts are taxed as ordinary income, you should include estimated taxes in your spending amount. This gives you a more realistic picture of how much you actually need to withdraw.

What if my Social Security or pension has no cost-of-living adjustment?

Set the COLA percentage to 0% in the Advanced Settings. This tells the calculator that your benefit stays the same every year and does not increase with inflation. Over time, this means your fixed income covers less of your spending, and more must come from your savings.

Can I use this calculator if I am already retired?

Yes. Enter your current savings balance, your current monthly spending, and your current income sources. Set years until retirement to 0. Set years in retirement to however many more years you expect to need income. The calculator will project your finances from today forward.

What investment return should I use?

A common choice is 4% to 6% for a balanced portfolio of stocks and bonds. If your money is mostly in bonds or savings accounts, use a lower number like 2% to 3%. If you are heavily invested in stocks, you might use 6% to 7%, but keep in mind that stock returns are not guaranteed and vary widely year to year.

What inflation rate should I use?

The long-term average inflation rate in the United States is about 3%. This is a good starting point for most people. If you want to be more conservative, you can use a higher rate like 3.5% or 4%. The calculator defaults to 3%, which reflects a reasonable historical average.

Why does the calculator say my funds may not cover my needs from the start?

This error appears when your first-year net withdrawal is larger than your available savings minus your target ending balance. It means you are trying to spend more than your portfolio can support even in year one. To fix this, try increasing your savings, reducing your monthly spending, or adding more fixed income sources.

Does this calculator account for market crashes or bad years?

No. This calculator uses a fixed annual return applied evenly across all years. Real markets go up and down. A big loss early in retirement can hurt your portfolio more than the same loss later. This is called sequence-of-returns risk. Use the results as a baseline estimate, not a guarantee.

How do I make my money last longer?

You have a few options. You can reduce your monthly spending, delay retirement to save more, increase your fixed income sources, or aim for a higher investment return. Even small changes can add years to your portfolio. For example, cutting $200 per month from spending can extend your funds significantly over a 25-year horizon.