Enter your retirement portfolio balance, withdrawal assumption, expected annual return, and time horizon to estimate monthly income, total withdrawals, and whether your savings will last.
Portfolio Details
$
Total investable assets at retirement (401k, IRA, brokerage, etc.).
%
Average annual portfolio return after fees. 5–7% is common for a balanced portfolio.
yrs
How many years you need the portfolio to last. Age 65 → 95 = 30 years.
Withdrawal Assumption
%
Percentage of starting balance withdrawn each year. The 4% rule is a common benchmark.
$
Fixed dollar amount withdrawn each year. Does not adjust for inflation.
Withdrawal Projection
Starting portfolio balance—
Annual withdrawal—
Monthly withdrawal—
Total withdrawn over horizon—
Portfolio ending balance—
Portfolio longevity—
Monthly Income
—
Total Withdrawn
—
Ending Balance
—
This calculator uses a fixed annual return and does not model inflation, taxes, sequence of returns risk, Social Security, or RMDs. Actual retirement outcomes will differ. Not financial advice.
About the Retirement Withdrawal Calculator
Saving for retirement is only half the challenge. Knowing how to draw down those savings — without running out of money — is equally critical. This calculator models how your portfolio grows and declines over time as you take regular withdrawals, giving you a clear picture of whether your current plan is on track for your retirement horizon.
Withdrawal Projection Formula
Annual Withdrawal = Portfolio Balance × Withdrawal Rate (rate mode)
Year-End Balance = (Starting Balance − Annual Withdrawal) × (1 + Return Rate)
Portfolio Depleted = when Balance reaches $0 before the end of the horizon
The 4% Rule
The 4% rule is the most widely cited withdrawal benchmark. Based on historical data from 1926–1992, it suggests that a portfolio allocated 50–75% to stocks can sustain a 4% initial withdrawal rate for 30 years in most historical scenarios. A $1M portfolio → $40,000/year or $3,333/month. Many planners now recommend 3–3.5% as a more conservative starting point given lower expected returns and longer retirements.
What This Calculator Does Not Model
Inflation — Purchasing power erodes over time; your real income decreases unless you raise withdrawals annually
Taxes — Traditional 401(k) and IRA withdrawals are taxed as ordinary income
Sequence of returns — Poor early returns can permanently impair a portfolio even if long-term averages hold
Social Security and pension income — These reduce the amount needed from your portfolio
Required Minimum Distributions (RMDs) — Mandatory at age 73 from traditional accounts
Extending Portfolio Longevity
If your portfolio depletes before your horizon, consider: reducing withdrawals by even 0.5%, working part-time in early retirement, delaying Social Security to increase guaranteed income, adjusting asset allocation, or using a bucket strategy where near-term spending stays in cash/bonds while growth assets remain invested.
This calculator provides simplified projections for planning purposes only. A complete retirement plan should account for taxes, inflation, multiple income sources, and sequence of returns risk. Not financial advice.
Frequently Asked Questions
How much can I safely withdraw from retirement savings?
The most common benchmark is the 4% rule, which suggests withdrawing 4% of your portfolio in year one, then adjusting for inflation annually. Based on historical data, this approach has sustained portfolios for 30+ years in most market scenarios. However, the 4% rule was developed in the 1990s using specific market conditions — current lower interest rates and higher valuations lead many planners to recommend 3.0–3.5% as a more conservative starting rate.
What is the 4% rule for retirement withdrawals?
The 4% rule was developed by financial planner William Bengen in 1994, based on historical stock and bond returns from 1926–1992. It states that retirees can withdraw 4% of their initial portfolio balance annually (adjusted for inflation) with a low probability of running out of money over a 30-year retirement. A $1 million portfolio would generate $40,000 per year under this rule. It is a guideline, not a guarantee, and actual results depend on market sequence, spending flexibility, and fees.
How does expected return affect retirement withdrawal planning?
A higher expected return allows the portfolio to grow between withdrawals, extending longevity. With a 7% return and 4% withdrawal rate on a $1M portfolio, the portfolio may actually grow over time. At 0% return, the portfolio declines by the full withdrawal amount each year and depletes in roughly 25 years. The most dangerous scenario is sequence of returns risk — experiencing poor returns in the early years of retirement, which can permanently impair a portfolio even if average long-term returns are adequate.
What is sequence of returns risk?
Sequence of returns risk is the danger that poor investment returns occurring early in retirement can permanently damage your portfolio. Because you are withdrawing a fixed amount while the portfolio is lower, you sell more shares than if returns had been good first. Even if the long-term average return is the same, a bad early sequence can deplete a portfolio that would have survived a good early sequence. This calculator uses a fixed annual return and does not model sequence of returns risk — actual outcomes will vary.
How long will $1 million last in retirement?
It depends on your withdrawal amount and investment returns. At a 4% withdrawal rate ($40,000/year) with 6% annual returns, $1M can last 30+ years. At a 5% rate ($50,000/year) with 4% returns, it depletes in roughly 26 years. At 6% withdrawal ($60,000/year) with 0% returns, it depletes in about 17 years. Use this calculator to model your specific combination of balance, withdrawals, return assumptions, and time horizon.
Should I use a withdrawal rate or a fixed dollar amount?
Withdrawal rate mode calculates your annual income as a percentage of your starting balance — useful for planning purposes and benchmarking against the 4% rule. Fixed dollar mode lets you enter a specific annual income target — useful if you know your spending needs. Note that a fixed dollar withdrawal does not adjust for inflation over time; actual purchasing power erodes unless you manually increase the withdrawal amount for inflation each year.
What expenses are not included in this calculator?
This calculator does not account for inflation (which reduces purchasing power over time), taxes (withdrawals from traditional 401k/IRA accounts are taxed as ordinary income), Social Security income, pension income, or Required Minimum Distributions (RMDs) which begin at age 73. A complete retirement plan should incorporate all income sources and tax obligations alongside portfolio withdrawals.
