Retirement Withdrawal Calculator: How Long Will My Money Last?
Enter a balance, a monthly withdrawal, a return and a number of years. See how long the money lasts, the most you could take each month, and how inflation changes the answer.
The first month. Taken at the start of each month.
What the money earns while you spend it. Many people use a lower figure than while saving.
Used to raise the withdrawal each year, if that box is ticked.
The money runs out after 27 years 6 months
That is 2 years 6 months short of the 30 years you planned.
Hypothetical: the money earns a steady 5% a year, compounded monthly, and the withdrawals come out at the start of each month. Real returns are uneven, and a bad market early in retirement does far more damage than the same average spread evenly. The 4% rule of thumb comes from past US market data and is not a guarantee. Taxes on the withdrawals are not included (see the tax view). For education, not advice.
How long $500,000 lasts at different withdrawal rates
A withdrawal rate is the first year's withdrawals as a share of the starting balance. With a 5% return and 3% inflation (the withdrawal rises every year):
| Withdrawal rate | First month | The money lasts |
|---|---|---|
| 3% | $1,250 | 57 years |
| 4% | $1,667 | 35 years 6 months |
| 5% | $2,083 | 26 years 1 month |
| 6% | $2,500 | 20 years 8 months |
| 7% | $2,917 | 17 years 1 month |
| 8% | $3,333 | 14 years 7 months |
The most $500,000 can pay each month
The first-month withdrawal that brings the balance to about zero at the end of the period, for three different returns.
| Years | At 3% a year | At 5% a year | At 7% a year |
|---|---|---|---|
| 20 | $2,120/mo | $2,568/mo | $3,069/mo |
| 25 | $1,698/mo | $2,153/mo | $2,674/mo |
| 30 | $1,416/mo | $1,879/mo | $2,420/mo |
| 40 | $1,064/mo | $1,542/mo | $2,120/mo |
How the calculation works
Each month the withdrawal comes out first, and what is left earns that month’s share of the yearly return. The balance keeps earning while it shrinks, which is why a withdrawal that looks large against the starting balance can still last for decades. If you tick the inflation box, the monthly amount is raised once a year so it keeps buying the same things. When the balance cannot cover a full withdrawal, the calculator pays what is left and shows how many years and months the money lasted.
The return is a steady yearly figure. Real markets are uneven, and a bad stretch early in retirement does far more harm than the same average spread evenly. So read the result as a way to compare plans, not as a promise. To go further, the compound interest calculator adds the saving years before retirement, a market-crash test, fees and a tax view.
Still learning how investing works? The free lessons explain it step by step.
Common questions
How long will $500,000 last in retirement?
It depends on how much you take out, what the money earns and how fast prices rise. Assuming a steady 5% a year and withdrawals that go up with 3% inflation, $500,000 lasts about 41 years 8 months at $1,500 a month, 27 years 6 months at $2,000 a month, 20 years 8 months at $2,500 a month, 16 years 6 months at $3,000 a month. Change the numbers in the calculator to test your own case.
What is the 4% rule?
The 4% rule is a rule of thumb: take 4% of your starting balance in the first year, then raise that dollar amount by inflation each year. It comes from studies of past US stock and bond returns, where portfolios have often lasted about 30 years. It is not a guarantee, and the future can be worse than the past, so treat it as a starting point rather than a promise.
How much can I withdraw each month from $1 million?
Over 30 years, with a steady 5% return and withdrawals raised with 3% inflation, about $3,758 a month in the first month would use the balance up by the end. With the same assumptions $500,000 supports about $1,879 a month. These are first-month amounts: with the inflation box ticked they rise every year.
Should the withdrawal go up with inflation?
If you want the same buying power year after year, yes. Prices rise, so a fixed $2,000 buys less each year. Raising the withdrawal with inflation is more realistic but uses the money faster. Untick the box to see a fixed withdrawal, and compare how long the money lasts.
What is sequence of returns risk?
It is the risk that a bad market comes early in retirement. Losses while you are also withdrawing leave less money to recover when the market turns, so the same average return can end very differently depending on the order of good and bad years. This calculator uses a steady return, so it cannot show that risk by itself. The crash view in the compound interest calculator lets you test a drop early against a drop late.
What return should I use?
There is no single right answer, so try a few. Many people use a lower return than while saving, because the money is usually moved toward safer holdings. The second table above shows the monthly amount for 3%, 5% and 7%, so you can see how much the choice matters.
Does this include taxes, Social Security or a pension?
No. It shows the pre-tax balance and the withdrawals only. If Social Security or a pension covers part of your spending, enter only the amount you need to take from savings. The tax view in the compound interest calculator estimates what different account types could change.
The calculations on this page are hypothetical and provided for education and illustration only. They are not financial planning, investment, tax or legal advice, and they do not guarantee how long your money will last. Real returns vary and can be negative, and taxes are not included. Talk to a licensed financial professional before making decisions about your retirement.