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Financial Planning

Retirement Withdrawal Calculator

Estimate how long retirement savings last with inflation-adjusted withdrawals, or the maximum withdrawal for a chosen number of years.

Your inputs

Results

Years the money lasts

26.8

Initial withdrawal rate
5%

≈Estimate based on the stated model and assumptions

Notes for this result

  • Withdrawals are taken at the start of each year and returns are constant. Sequence-of-returns risk can shorten real-world outcomes.

Inputs are never added to links for financial, salary or health calculators.

What this calculator does

In retirement the question flips from “how much will I have” to “how long will it last”. This tool takes a withdrawal at the start of each year, grows the rest at your expected return, and raises withdrawals with inflation.

Formula and method

Duration: each year balance = (balance − withdrawal) × (1 + r); withdrawal × (1 + g). Maximum withdrawal for N years: W = B ÷ Σ_{k=0}^{N−1} ((1 + g)/(1 + r))^k.

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Savings at retirement: 1000000 (any currency)
  • Annual return during retirement: 5 %
  • Annual increase in withdrawals (inflation): 2.5 %
  • Calculate: How long a withdrawal lasts
  • First-year withdrawal: 50000 (any currency)

Results

  • Years the money lasts: 26.8
  • Initial withdrawal rate: 5%

How to read the results

If the money lasts 100+ years, the return covers the withdrawals indefinitely under these assumptions.

Assumptions and limitations

  • Real returns vary, and poor returns early in retirement (sequence risk) can shorten outcomes.
  • Taxes and required minimum distributions are not modelled.
  • Results are estimates for planning and education, not individual financial advice.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

Is the 4 % rule safe?

It came from US historical back-tests over 30-year periods. It is a starting point for discussion, not a guarantee, especially for longer retirements.

Methodology and verification

Result type
Estimate based on the stated model and assumptions
Formula version
1.0
Automated verification
4 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Because this calculator can involve personal financial or health details, your inputs are never added to share links or saved to history. Privacy policy