Estimate how long your savings may last when making
regular withdrawals, including the potential effects of
investment returns, inflation, and your selected
withdrawal period.
Enter Your Savings Details
Adjust your savings balance, withdrawal amount,
return assumptions, inflation, and time period.
$
Total savings available before withdrawals begin.
$
Amount withdrawn during the first month.
%
Estimated annual return before withdrawals.
%
Withdrawals increase gradually with inflation.
years
Number of years you want to model withdrawals.
What Is a Savings Withdrawal Calculator?
A Savings Withdrawal Calculator estimates how long
your savings may last when you take regular withdrawals.
It can be useful for planning retirement income,
long-term savings withdrawals, early retirement,
or any situation where you expect to draw money
gradually from an existing balance.
Rather than simply dividing your savings by a fixed
monthly amount, this calculator also considers an
assumed investment return and inflation.
This means the remaining balance can potentially earn
returns while future withdrawals can increase to reflect
the inflation assumption you enter.
How the Savings Withdrawal Calculator Works
1
Enter Your Savings
Add your current savings balance and initial
monthly withdrawal amount.
2
Add Assumptions
Enter an estimated annual return,
inflation rate, and withdrawal period.
3
Review the Projection
See estimated duration, ending balance,
total withdrawals, growth, and sustainable income.
Monthly Investment Growth
Monthly Return =
(1 + Annual Return)1/12 − 1
The calculator applies an estimated monthly return to
the remaining savings balance during each modeled month.
When inflation is greater than zero, the withdrawal
amount gradually rises throughout the modeled period.
Savings Withdrawal Example
Suppose you begin with
$250,000 in savings
and plan to withdraw
$2,000 per month.
Starting Savings:
$250,000
Initial Monthly Withdrawal:
$2,000
Expected Annual Return:
5%
Inflation:
2.5%
Withdrawal Period:
20 years
The calculator models the balance month by month.
The remaining savings can earn the assumed return,
while the withdrawal amount gradually increases
according to the inflation assumption.
What Affects How Long Savings Last?
Starting Savings Balance
A larger starting balance generally allows withdrawals
to continue longer, assuming other inputs remain the same.
Withdrawal Amount
Larger regular withdrawals reduce the balance more
quickly. Even relatively small changes in monthly
withdrawals can have a significant long-term effect.
Investment Returns
Investment growth may help replace some of the money
being withdrawn. Actual returns, however, can fluctuate
and may differ substantially from a fixed assumption.
Inflation
Increasing withdrawals over time to reflect inflation
can cause savings to decline faster than withdrawing
the same fixed dollar amount every month.
What Is a Sustainable Savings Withdrawal?
The sustainable withdrawal shown by this calculator is
an estimated starting monthly withdrawal designed to
make the savings balance last for approximately the
selected number of years under the return and inflation
assumptions entered.
For example, if you select a 25-year period, the
calculator estimates an initial monthly amount that
would use most of the savings over those 25 years while
accounting for modeled investment growth and increasing
withdrawals.
Important:
Investment returns and inflation do not occur at fixed
rates in the real world. This calculator is a mathematical
projection only and should not be treated as financial,
investment, retirement, tax, or legal advice.
Savings Withdrawal Calculator FAQs
A Savings Withdrawal Calculator estimates how long a savings balance may last when you make regular withdrawals. It can also account for an assumed investment return, inflation, and the length of time you want your savings to support withdrawals.
A positive investment return may help your remaining savings grow between withdrawals. Higher returns can potentially extend how long savings last, while lower or negative returns may shorten the withdrawal period.
Inflation can reduce purchasing power over time. If you increase withdrawals to maintain similar purchasing power, future withdrawals may be larger than your initial monthly withdrawal.
In this calculator, the sustainable monthly withdrawal is an estimated starting monthly amount that could reduce the savings balance close to zero by the end of the selected period, based on the return and inflation assumptions entered.
In some mathematical scenarios, investment growth may be sufficient to support the selected withdrawal for a very long time. Actual investment returns and inflation are uncertain, so real-world results can differ significantly.
No. This calculator provides estimates for informational purposes only. It does not predict investment performance or provide retirement, investment, tax, or financial advice.