Retirement Withdrawal Calculator
See how long a retirement balance lasts at a chosen annual withdrawal and return, with optional inflation-adjusted withdrawals.
How it works
Each year: balance = balance × (1 + return) − withdrawal; the withdrawal grows 3% a year if inflation-adjusting. The money lasts until the balance hits zero (capped at 60 years).
This simulates a retirement drawdown year by year: the balance earns the return, then the annual withdrawal is taken out. If withdrawals stay below what the portfolio earns, the balance holds or grows and never runs out; if they exceed the earnings, the balance erodes until it hits zero. Turning on inflation adjustment grows the withdrawal each year to preserve purchasing power, which shortens how long the money lasts. Real markets are volatile rather than a smooth return, so treat the result as a planning guide, not a promise.
Worked example
Withdrawing $40,000 a year from a $1,000,000 balance at a steady 5% return, the portfolio earns $50,000 in the first year — more than the withdrawal — so the balance grows rather than shrinks. At this 4% withdrawal on a 5% return the money never depletes within 60 years.
Frequently asked questions
Why does my money never run out in some cases?
When your annual withdrawal is smaller than the return the balance earns, the portfolio grows faster than you draw it down, so it can sustain withdrawals indefinitely. That is the logic behind safe-withdrawal-rate rules like the 4% rule.
How does inflation adjustment change the result?
Growing your withdrawal each year to keep pace with prices means you take out more over time, which drains the balance faster. It is more realistic, since costs rise in retirement, but it shortens how long a given balance lasts.
Does this account for market ups and downs?
No — it assumes a steady return every year. Real returns vary, and a run of poor early years (sequence-of-returns risk) can deplete a portfolio faster than a smooth average suggests. Use a conservative return and revisit the plan regularly.
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Educational estimate only, not financial or tax advice. Retirement, contribution and tax rules change and depend on your personal situation — confirm with a licensed financial or tax professional.