This savings withdrawal calculator models how long retirement savings or any investment balance will last with regular monthly withdrawals and a given annual return rate. It shows months/years until depletion, total amount withdrawn, initial monthly interest, and the 4% rule sustainable withdrawal for comparison, plus a reference table of common balance/withdrawal/return scenarios.
Savings Withdrawal Calculator
Calculate how long your savings will last with regular withdrawals, or how much you can withdraw monthly.
How Savings Withdrawal Calculator Works
A savings withdrawal calculator projects how long a lump sum will last once you start pulling a fixed amount out of it every month while the remainder keeps earning a return. It simulates the balance month by month, applying growth first and then subtracting the withdrawal, until the balance runs out.
Formula: Each month, Balance = Balance × (1 + r) − Withdrawal, where r is the monthly return rate (Annual Return Rate ÷ 1200). This repeats until Balance reaches zero, and the number of months elapsed is how long the savings last. If Withdrawal is less than or equal to Balance × r (the interest earned in a month), the balance never shrinks and can sustain withdrawals indefinitely. As a reference point, the tool also shows the 4% Rule Withdrawal = Starting Balance × 0.04 ÷ 12.
- Starting Balance ($) — the total savings or investment amount you’re withdrawing from
- Monthly Withdrawal ($) — the fixed dollar amount taken out of the balance every month
- Annual Return Rate (%) — the yearly growth rate applied to the remaining balance, converted to a monthly rate r
- Monthly Interest — Starting Balance × r, the interest earned in the very first month
- 4% Rule Withdrawal — Starting Balance × 4% ÷ 12, a commonly referenced sustainable monthly amount for comparison
Example Scenarios
| Starting Balance | Monthly Withdrawal | Annual Return | Savings Last |
|---|---|---|---|
| $500,000 | $3,000 | 5% | ≈23 yrs 9 mo |
| $250,000 | $1,500 | 4.5% | ≈21 yrs 10 mo |
| $100,000 | $800 | 6% | ≈16 yrs 5 mo |
| $1,000,000 | $3,000 | 5% | 100+ yrs (sustainable) |
| $50,000 | $600 | 3% | ≈7 yrs 10 mo |
Stress-Testing Your Savings Withdrawal Calculator Plan
A savings withdrawal calculator assumes the same return every year, but real markets move unevenly, and the order of those returns matters.
- Sequence risk: a sharp fall early on drains a balance faster than the same fall later. Rerun the savings withdrawal calculator with a lower return to see the downside.
- Inflation: a fixed withdrawal buys less each year. Use a real (after-inflation) return, or raise the withdrawal periodically.
- Taxes and fees: withdrawals from some accounts are taxed, and fund fees cut the return, so enter a net figure.
Try three runs of the savings withdrawal calculator: optimistic, middle and cautious returns. If the plan only works in the optimistic case, the withdrawal is probably too high.
The 4% rule comes from historical US studies of stock and bond portfolios over roughly 30 years; it is a rule of thumb, not a guarantee. The Trinity study article on Wikipedia explains its assumptions and limits. Rules vary by country, so treat each savings withdrawal calculator result as a planning estimate, not personal advice. Revisit the savings withdrawal calculator every year as your balance and spending change.
Savings Withdrawal Calculator FAQ
What happens if my monthly withdrawal is smaller than my monthly interest?
If your withdrawal is less than or equal to the interest your balance earns that month, the balance stops shrinking and can, in theory, sustain that withdrawal indefinitely. The calculator flags this as a sustainable scenario rather than showing a depletion date.How is this different from the 4% rule?
The 4% rule is a single fixed guideline (4% of the starting balance per year) often used as a retirement planning shortcut. This calculator instead lets you test any specific withdrawal amount and return rate, then shows how that compares against the 4% rule figure side by side.Does this calculator account for inflation?
No. The calculator holds your monthly withdrawal amount constant and applies a flat annual return rate, so it does not adjust for rising costs over time. In practice, many retirees increase withdrawals gradually to keep pace with inflation, which would shorten how long the balance lasts.What return rate should I use for a realistic estimate?
The right rate depends on how your savings are invested — cash and bonds typically earn less than a diversified stock portfolio, and returns vary year to year rather than staying constant. Try a few different rates to see how sensitive your results are to that assumption.Why does total withdrawn sometimes exceed the starting balance?
When the balance keeps earning returns between withdrawals, the total amount withdrawn over many years can add up to more than you started with, since ongoing growth is funding part of each withdrawal alongside the principal itself.Should I include Social Security or pension income in the withdrawal amount?
Enter only the amount you plan to pull from this specific savings balance. If you have other income sources like Social Security or a pension, those reduce how much you actually need to withdraw from savings, so factor them in separately before choosing your withdrawal figure.Related Calculators
To plan the buildup phase before you start withdrawing, see the retirement calculator for projecting your total nest egg, use the RMD calculator to check required minimum distributions from tax-advantaged accounts, or explore the annuity calculator for a guaranteed-income alternative to self-managed withdrawals.