About the Savings Withdrawal Calculator
This savings withdrawal calculator shows how long a pot of money lasts when you take a fixed amount out every month while the rest keeps earning interest. Enter your current savings, the monthly withdrawal, the annual return and — optionally — a yearly increase to keep pace with inflation. It returns the number of years and months until the balance runs out, the total you will withdraw and how much of that came from interest.
It is built for anyone living off savings: retirees drawing down a nest egg, people on a sabbatical or career break, early retirees bridging to a pension, or a family using an inheritance to cover expenses. It works equally well for a bank savings account (use its APY) or an invested portfolio (use a cautious expected return).
Two extra figures help you plan: the monthly amount that would make the money last exactly the number of years you choose, and the "interest-only" withdrawal you could take forever without touching the principal. Returns are assumed steady; real investment returns vary, which matters most in the first years of a drawdown.
With the default inputs, the years until savings run out is 20.3 years. Change any value above to recalculate instantly.
How to use the savings withdrawal calculator
- 1Enter the amount you have saved today.
- 2Enter how much you plan to withdraw each month.
- 3Set a realistic annual return — your savings APY or a cautious portfolio return.
- 4Optionally add a yearly increase so withdrawals keep up with inflation.
- 5Pick how many years the money needs to last to see a sustainable monthly amount.
Formula and method
The calculator simulates the account month by month: interest at one-twelfth of the annual rate is added to the balance, then the month's withdrawal is taken out. If you set a yearly increase, the withdrawal rises by that percentage at the start of each new year. The count stops in the month the balance reaches zero; the last withdrawal may be partial.
The sustainable withdrawal for your chosen horizon uses the standard annuity (loan payment) formula with i = annual rate ÷ 12 and n = years × 12 — it is the level monthly amount that brings the balance to exactly zero at the end. The interest-only figure is simply savings × i, the most you can take without the balance ever falling. Interest earned equals total withdrawals plus any remaining balance minus the starting savings.
- S
- Starting savings
- W(m)
- Withdrawal in month m
- r
- Annual return (decimal); i = r ÷ 12
- n
- Months in the chosen horizon
Worked examples
$500,000 with $3,000/month at 4%
Withdrawing $3,000 a month from $500,000 earning 4% lasts 244 months — about 20 years 4 months. Interest contributes around $231,000, so you withdraw about $731,000 in total. To stretch the money to 30 years, withdraw about $2,387 a month instead.
$300,000, $2,000/month rising 2.5% a year, 5% return
Starting at $2,000 a month and raising withdrawals 2.5% each year, a $300,000 pot earning 5% lasts 184 months (15 years 4 months) and pays out about $439,960. A level $1,754 a month would last the full 25 years.
Cash with no interest: $200,000 at $1,500/month
With no interest, $200,000 ÷ $1,500 = 133.3 months, so the money runs out in month 134 with a final partial withdrawal. To last 20 years you could take only $833 a month.
Frequently asked questions
How long will my savings last?+
Divide your savings by your yearly spending for a rough no-growth answer, then add interest. For example, $500,000 at $3,000 a month lasts about 13.9 years with no return but about 20.3 years at 4%, because the remaining balance keeps earning.
What is the 4% rule?+
The 4% rule says you can withdraw 4% of your portfolio in the first year of retirement, then raise the amount with inflation, and historically have had a high chance of the money lasting 30 years in a balanced stock and bond portfolio. It is a guideline, not a guarantee.
How much can I withdraw so my money never runs out?+
If you only withdraw the interest or return each month — savings × annual rate ÷ 12 — the principal stays intact. On $500,000 at 4% that is about $1,667 a month, though inflation slowly erodes what it buys.
Should I include inflation?+
Yes, for long drawdowns. Setting a yearly increase equal to expected inflation (for example 2.5%) keeps your spending power constant and gives a more realistic, shorter lifespan for your savings.
Does this account for taxes on withdrawals?+
No. Withdrawals from a traditional 401(k) or IRA are taxed as income, while Roth and regular savings withdrawals are generally not. Enter the gross amount you need to withdraw to cover both spending and any tax due.
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.