Retirement Withdrawal Calculator
The sustainable yearly and monthly withdrawal for your retirement. Live calculator with worked steps and charts.
Calculator
The classic 4% rule: withdraw 4% in year one, then adjust for inflation.
Before inflation. A 60/40 stock-bond mix has returned roughly 7% a year long-term.
How long the savings must last. Plan to at least 90 — half of 65-year-olds outlive the average.
This withdrawals & income calculator runs on standard retirement mathematics: contributions compound monthly, withdrawals are tested against growth, and every figure updates live as you type.
Results
Annual Withdrawal
$20,000
$1,667
4.00%
Indefinitely at this rate
60years
Live results update as you type — currently showing annual withdrawal of $20,000. Replace the defaults with your own numbers for an exact plan.
Visualizations
Withdrawal vs Remaining (Year 1)
Formula
The rate converts savings into yearly and monthly paycheques; the annuity-duration equation tests how long they last at the assumed growth.
Variables
| Symbol | Name | Unit | Description |
|---|---|---|---|
| B | Balance | $ | Starting savings. |
| w | Withdrawal rate | % | Year-one share. |
Explanation
The retirement paycheque your balance funds — and whether it outlasts the plan.
Step-by-Step Calculation
Follow each step to understand how the result is calculated from your inputs.
Apply the withdrawal rate to the starting balance.
Divide into monthly paycheques.
Test how long the money lasts at the assumed growth rate.
Worked Examples
See how the calculator works with different scenarios.
Scenario
The retirement withdrawal calculator run on the values above, showing the full calculation path rather than only the answer.
Inputs
Calculation
1. Apply the withdrawal rate to the starting balance. → $20,000/year 2. Divide into monthly paycheques. → $1,666.67/month 3. Test how long the money lasts at the assumed growth rate. → Indefinitely
Result
Annual Withdrawal: $20,000
Interpretation
$20,000/yr ($1,666.67/mo) at 4.00% on $500,000.
Understanding Your Result
Your Result: Annual Withdrawal: $20,000
Typical range: The 4% rule survived every 30-year US retirement since 1926; higher rates work only with flexibility to cut back.
What This Means
The retirement paycheque your balance funds — and whether it outlasts the plan.
Why It Matters
$20,000/yr ($1,666.67/mo) at 4.00% on $500,000.
Professional Interpretation
$20,000/yr ($1,666.67/mo) at 4.00% on $500,000.
How this is calculated
The rate converts savings into yearly and monthly paycheques; the annuity-duration equation tests how long they last at the assumed growth.
What drives the result
Safe spending is governed by sequence as much as averages: the same 5% average return funds very different retirements depending on whether bad years arrive first or last. Lower initial withdrawals plus flexibility after down years add more safety than any product.
Recommendations
- •Adjust withdrawals for inflation yearly — but skip the raise after down years.
- •Keep the rate at or under 4% unless you have guaranteed income covering the basics.
Educational Content
Introduction
Spending savings safely is the mirror image of building them: a sustainable withdrawal must survive decades of inflation and market swings. Every figure on this page — monthly income, how long money lasts, the breakeven between claiming options — balances how much you take against how long it must keep growing.
Concept Explanation
Safe spending is governed by sequence as much as averages: the same 5% average return funds very different retirements depending on whether bad years arrive first or last. Lower initial withdrawals plus flexibility after down years add more safety than any product.
Applications
Benefits
- •Expresses sustainability as a concrete monthly number, not a vague warning
- •Shows the trade-off between spending today and solvency at 90
- •Compares guaranteed income against portfolio withdrawals side by side
Limitations
- •Assumes smooth returns unless a shock scenario is modelled explicitly
- •Uses fixed spending; real retirees flex travel, gifts and big purchases
- •Ignores taxes, healthcare inflation and long-term-care shocks
Best Practices
- •Cover essentials with guaranteed income (Social Security, pension, annuity) first
- •Skip the inflation raise after any year the portfolio falls
- •Keep 1–2 years of spending in cash so downturns never force stock sales
Common Misconceptions
Practical Tips
- •Skip inflation raises after down years.
- •Keep the rate ≤4% unless guaranteed income covers essentials.
Common Mistakes
Assumptions
This calculator makes the following assumptions to provide estimates:
Limitations
Be aware of these limitations when using this calculator:
Frequently Asked Questions
Answers to common questions about this calculator.
How much can I withdraw yearly in retirement?
Is 4% still safe?
Who uses the retirement withdrawal calculator?
How accurate is the retirement withdrawal calculator?
How accurate is the Retirement Withdrawal Calculator?
Should I use nominal or real returns in the Retirement Withdrawal Calculator?
Related Calculators
Explore more calculators related to this topic.
Related Guides
Deepen your understanding with these educational resources.
How compounding, matches and contribution limits fit together.
Withdrawal rates, Social Security timing and making money last.
Brackets today versus brackets tomorrow, conversions and RMDs.
Glossary
Technical terms used in mortgage calculations explained in plain language.
- Safe withdrawal rate
- The starting withdrawal percentage (classically 4%) that historically sustained 30 years of inflation-adjusted spending.
- Sequence-of-returns risk
- The danger that poor returns early in retirement permanently impair the portfolio, even if long-run averages are fine.
Authoritative References
Trusted sources and standards referenced by this calculator.
Applicable Standards
Was This Calculator Helpful?
Page Information
2026-09-21
2.0.0
Free to use for educational and professional purposes.