Retirement withdrawal calculator

The most you can withdraw each year, rising with inflation, so your savings last exactly as long as you need.

In short: The most you can withdraw each year, rising with inflation, so savings last exactly as long as you need is an annuity: balance × r ÷ ((1 + r) × (1 − (1 + r)^−n)), where r is the real return and n the number of years.

$49,017 a year

That's $4,085 a month for 30 years, raised with inflation each year.

First-year withdrawal rate: 4.90%
Per month: $4,085
Withdrawn in total: $1.47M

What would change your result

Your first-year rate is 4.9%. Above about 4.5%, a bad first decade can empty the account early.Test it
Planning for 35 years instead of 30 lowers it to $44,647 a year.
Leaving $100,000 behind would cost $2,072 a year of spending.

What-ifs worked out from your own numbers. Not personal financial advice.

Portfolio

Using a 2.91% real return. All amounts in today's dollars.

Year-by-year table

Age	Portfolio	Withdrawn so far
65	$1,000,000	$0
66	$978,682	$49,017
67	$956,742	$98,034
68	$934,164	$147,051
69	$910,928	$196,068
70	$887,015	$245,085
71	$862,406	$294,102
72	$837,079	$343,119
73	$811,016	$392,136
74	$784,193	$441,153
75	$756,589	$490,170
76	$728,181	$539,187
77	$698,945	$588,204
78	$668,858	$637,221
79	$637,894	$686,238
80	$606,029	$735,255
81	$573,236	$784,272
82	$539,487	$833,289
83	$504,756	$882,306
84	$469,013	$931,323
85	$432,229	$980,340
86	$394,373	$1,029,357
87	$355,415	$1,078,374
88	$315,322	$1,127,391
89	$274,062	$1,176,408
90	$231,599	$1,225,425
91	$187,900	$1,274,442
92	$142,928	$1,323,459
93	$96,647	$1,372,476
94	$49,017	$1,421,493
95	$0	$1,470,510

A worked example

With these inputs:

Age when withdrawals start65
Portfolio at retirement$1,000,000
Years it must last30 years
Leave behind$0
Expected return6%
Inflation3%

the calculator returns $49,017 a year. That's $4,085 a month for 30 years, raised with inflation each year.

Its first suggestion: Your first-year rate is 4.9%. Above about 4.5%, a bad first decade can empty the account early.

Key facts

$1 million over 30 years at a 6% return and 3% inflation supports about $49,000 a year, a first-year rate of 4.9%.
Planning for 35 years instead of 30 lowers that to about $44,600 a year.
Leaving a legacy reduces the yearly amount by the present value of that legacy spread over the years.

How it's calculated

This is an annuity paid at the start of each year. With real return r over n years, the yearly amount is balance × r ÷ ((1 + r) × (1 − (1 + r)⁻ⁿ)).

To leave a legacy, we first set aside today's value of that amount, legacy ÷ (1 + r)ⁿ, and spread the rest. The table shows the balance falling to exactly your legacy in the final year.

Questions people ask

How is this different from the 4% rule?

The 4% rule is a fixed starting rate meant to survive bad markets with money left over. This calculator spends the portfolio down to zero (or your legacy) on schedule, assuming steady returns.

Is the monthly amount exact?

It is one twelfth of the yearly withdrawal, taken at the start of the year. Spreading it monthly gives you a little more growth, so it is slightly conservative.

What if I live longer than planned?

Choose more years than you expect to need. Many planners use age 95 as the end point.