Interactive financial calculator
Retirement Withdrawal Calculator
Model monthly retirement withdrawals after recurring income, inflation, investment returns, and fees to estimate portfolio longevity.
- Free to use
- No account required
- Inputs stay in your browser
Methodology & Assumptions
How this estimate is calculated
Monthly simulation: net annual return is approximated as gross return minus the annual fee, then converted to an effective monthly rate. Growth is applied first and the required portfolio withdrawal is taken at month-end. Spending rises once each year with inflation; recurring income either stays nominally fixed or rises at the same rate. The model stops at depletion or 100 years.
Illustrative result: figures are rounded for display after calculations use full numeric precision. Actual results may differ.
Currency: dollar symbols are a display convention. Enter every monetary amount in one consistent currency; the calculator does not convert currencies or apply jurisdiction-specific tax rules.
How the Retirement Withdrawal Calculator Works
This retirement drawdown calculator estimates how long savings may last in one deterministic scenario. It starts with total desired spending, subtracts pension or other recurring income, and withdraws only the remaining need from the portfolio. Spending rises once per modeled year with inflation. Recurring income can either remain fixed in nominal terms or rise at the same inflation rate.
The gross annual return minus the annual investment fee is treated as the net annual rate, which is converted to an effective monthly rate. Each month applies growth first, then takes the withdrawal at month-end. The simulation stops when the portfolio is depleted or after 100 years. It does not model taxes, account withdrawal order, market volatility, income start dates, or changes in spending.
Formula and Withdrawal Timing
First-year portfolio withdrawal = max(0, annual spending need − annual recurring income). The first-year withdrawal rate is that amount divided by the starting portfolio. For later years, spending is multiplied by (1 + inflation rate)year. Income uses the same factor only when the inflation-linked option is selected.
A constant return is useful for comparing assumptions, but actual markets do not deliver smooth monthly results. Two retirements with the same average return can have very different outcomes when losses occur at different times. This result is therefore a savings-longevity estimate, not a probability of success.
Worked Example
Suppose a 65-year-old starts with $750,000, wants $50,000 of annual spending, and receives $15,000 of annual recurring income. The portfolio must provide $35,000 in year one, a 4.67% initial withdrawal rate. With zero return, zero fees, and zero inflation, equal monthly withdrawals deplete the portfolio during month 258—about 21 years and 6 months, near age 86.5. Adding return, inflation, or fees changes that timeline according to the assumptions entered.
Interpreting a Non-Depletion Result
“Not depleted within 100 years” means only that the balance remained above zero inside this fixed scenario and technical horizon. It does not mean the plan is guaranteed. Test lower returns, higher inflation, higher fees, and spending changes. Compare the initial withdrawal with the 4% Rule Calculator, review the required portfolio with the FIRE Number Calculator, and use the Inflation Calculator to examine purchasing power separately.
Frequently Asked Questions
What happens if recurring income covers all spending?
The first-year portfolio withdrawal is zero. If income also rises with inflation at the same rate as spending, the modeled spending gap remains zero. If income stays nominally fixed while spending rises, a portfolio withdrawal may begin in a later year.
Is the investment return nominal or real?
It is nominal. Inflation separately increases spending, while the fee reduces the entered gross return. Keeping these assumptions separate makes their effects visible and avoids silently mixing today's purchasing power with future nominal amounts.
Does the calculator prove that my retirement savings will last?
No. It is a deterministic projection based on constant rates. It does not capture market sequence, taxes, changing income, unexpected expenses, asset allocation, or behavioral changes. Actual results may differ materially.
How should I choose an investment fee?
Use a portfolio-level estimate that reflects fund expense ratios and any recurring advisory or platform fee you want to model. Avoid adding the same fee twice. Product terms differ across the United States, Canada, Australia, and other markets.