About the Retirement Income Calculator
This retirement income calculator adds up every source of retirement income into one monthly “paycheck”: withdrawals from your investment portfolio at a chosen rate, Social Security, a pension and any other income such as rent or part-time work. It then compares the total with the income you want and shows any gap.
It also tests sustainability. Portfolio withdrawals rise with inflation every year, and the balance earns your expected return, so the calculator can show how many years the savings will last and chart the balance through retirement. Use it when you are close to retiring, deciding on a withdrawal rate, or checking whether a pension or delayed Social Security closes a shortfall.
Tax is applied as a single effective rate to all income for simplicity; in reality Roth withdrawals are tax-free and only part of Social Security may be taxable. Social Security and pension amounts are shown in today’s dollars. Returns are constant averages, so real-world results will vary with the sequence of market returns.
With the default inputs, the total monthly income (before tax) is $5,333.33. Change any value above to recalculate instantly.
How to use the retirement income calculator
- 1Enter your age at retirement and total retirement savings.
- 2Choose a withdrawal rate — 3.5%–4.5% is a common range.
- 3Add monthly Social Security, pension and any other income.
- 4Set your expected return, inflation and effective tax rate.
- 5Enter the income you want and check the gap and how long savings last.
Formula and method
The first-year withdrawal is your savings times the withdrawal rate w; divided by 12 it becomes the monthly amount from savings, which is added to Social Security, pension and other monthly income. After-tax income applies one effective tax rate to the total.
To estimate how long savings last, the balance earns the return r each year and the withdrawal is taken at year-end, growing with inflation i. The count stops in the first year the balance cannot cover the full withdrawal (capped at 60 years). Guaranteed income is assumed to keep pace with inflation and does not depend on the portfolio.
- w
- Withdrawal rate from savings
- W₀
- First-year withdrawal (savings × w)
- r
- Annual portfolio return
- i
- Inflation rate applied to withdrawals
Worked examples
$1 million at 4% plus $2,000 Social Security
A 4% withdrawal gives $40,000 a year, or $3,333 a month. Adding $2,000 of Social Security brings income to $5,333 a month — $667 short of the $6,000 goal. With withdrawals rising 2.5% a year and a 5% return, savings cover about 40 years of withdrawals.
Couple with a pension and $600,000 saved
Withdrawing 4.5% of $600,000 gives $2,250 a month. With $3,200 of Social Security and a $1,500 pension, total income is $6,950 — just $50 under the $7,000 target, with two-thirds of it guaranteed.
High withdrawal rate stress test
Withdrawing 7% ($70,000) and raising it 3% a year while earning only 4% depletes the savings after about 15 years — a warning that high withdrawal rates rarely survive a long retirement.
Conservative 3% withdrawal rate
Taking 3% ($30,000 a year, $2,500 a month) and raising it 2.5% a year while earning 5% never exhausts the savings within the 60-year horizon, but total income of $4,500 falls $1,500 a month short of the $6,000 goal.
Frequently asked questions
How much income will $1 million provide in retirement?+
Using the 4% rule, $1 million supports about $40,000 a year, or $3,333 a month, rising with inflation, with a high historical chance of lasting 30 years. Adding Social Security and any pension gives your total retirement income.
What percentage of my income will I need in retirement?+
Many planners suggest 70%–80% of pre-retirement income, since payroll taxes, retirement saving and commuting costs disappear. Your actual need depends on housing costs, health care, travel plans and whether your mortgage is paid off.
Is Social Security income taxable?+
Up to 85% of Social Security benefits can be federally taxable depending on your combined income. Below $25,000 (single) or $32,000 (married filing jointly) of combined income — half your benefits plus your other income — benefits are not taxed, and up to 85% becomes taxable above $34,000 (single) or $44,000 (joint). These thresholds are fixed in law and not indexed for inflation; some states also tax benefits.
What is a safe withdrawal rate?+
The classic figure is 4% of your starting balance, adjusted for inflation each year, for a 30-year retirement. Longer retirements or a conservative portfolio call for 3%–3.5%, while flexible spending rules can support a higher starting rate.
How can I close a retirement income gap?+
Options include working a few years longer, delaying Social Security to increase benefits by 8% per year past full retirement age, buying an income annuity, reducing expenses, downsizing your home or earning part-time income in early retirement.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.