How Long Will My Money Last? Retirement Withdrawal Calculator
How long will my money last if I take a monthly income from savings that keep earning a return? Enter your balance, withdrawal, return and inflation to see the years and months left, or the most you can take out for a set number of years.
How to Use the Retirement Withdrawal Calculator
Start with your savings today and the amount you plan to take out each month. Add the yearly return you expect and the yearly raise you want for inflation. The retirement withdrawal calculator answers at once with the years and months your money covers.
The second mode turns the question around. Type the number of years the money must last and the tool finds the largest monthly withdrawal that fits. Both modes show a year by year table with the start balance, the money withdrawn, the growth and the end balance.
Worked Example: $500,000 and $3,000 a Month
Say you retire with $500,000, withdraw $3,000 a month and earn 5% a year. You raise the withdrawal by 3% each year to keep up with prices. The answer to how long will my money last is 16 years and 4 months, followed by a final partial payment of $3,679.
Over that time you take out $748,583 in total, and $248,583 of it comes from growth. Your first year withdrawal rate is 7.2%, which is high. By the last year the monthly check has grown to $4,814 because of the yearly raises.
| Same $500,000 at 5% | Raise each year | Money lasts |
| $3,000 a month | 3% | 16 years, 4 months |
| $3,000 a month | 0% | 23 years, 1 month |
| $2,000 a month | 3% | 27 years |
| $1,667 a month (4% rule) | 3% | 34 years, 8 months |
The table comes from the retirement withdrawal calculator with only one input changed in each row. Cutting the first withdrawal by a third adds more than ten years.
How the Calculation Works
Each month the tool takes the withdrawal out first and then adds one month of growth to what is left. A 5% yearly return becomes a monthly rate of about 0.407%. Once a year the withdrawal rises by your inflation rate.
The money runs out in the month when the balance can no longer cover a full withdrawal. That last month gets whatever remains. If the growth always covers the withdrawals, the answer to how long will my money last is more than 100 years.
The 4% Rule in Plain Terms
In 1994 the planner William Bengen tested past US market returns and found a safe starting point. Withdrawing 4% of savings in the first year and raising it with inflation lasted at least 30 years in every period he studied. On $500,000 that is $20,000 a year or about $1,667 a month.
The rule is a guide from history, not a promise. Returns, fees and taxes today can differ from the past. Use the second mode to ask the retirement withdrawal calculator what your own numbers allow. With 5% growth and 3% raises, $500,000 lasting 30 years supports $1,851 a month at the start.
What Changes the Answer Most
- The withdrawal amount. Spending less in the early years helps more than any other change.
- The return. At 7% instead of 5% the $3,000 example lasts 20 years and 1 month, and at 3% it lasts 14 years.
- Inflation raises. A flat withdrawal lasts longer, but its buying power falls each year.
- Other income. A pension or Social Security lowers what you need from savings.
Try each change in the tool and watch the years move. Small changes repeated over decades make a large difference to how long will my money last.
Limits of a Fixed Return
Real markets do not return the same 5% every year. A crash in the first years of retirement does more damage than the same crash later, because you sell assets while prices are low. Planners call that sequence of returns risk.
The calculator uses one steady rate, so treat the result as a middle estimate. Test a lower return as well, such as 3% or 4%, to see a cautious case. Keep one or two years of spending in cash so you do not have to sell after a fall.
A Simple Check Before You Retire
Run the tool three times with a cautious, a middle and a hopeful return. If the cautious case still answers how long will my money last with a number beyond your life expectancy, your plan has room. If not, lower the first withdrawal or keep working a little longer.
Repeat the check once a year with your real balance. A retirement withdrawal calculator gives a fresh answer whenever markets or spending change.
Taxes and Account Types
Withdrawals from a traditional 401(k) or IRA count as taxable income in the year you take them. Roth withdrawals that meet the rules are tax free. If your savings sit in a taxable account, enter the amount you need after tax plus an estimate of the tax.
Required minimum distributions can force larger withdrawals from traditional accounts later in life. Check the current rules with the IRS or a tax adviser before you set a plan.
Frequently asked questions
How long will my money last with $500,000?
At $3,000 a month, 5% growth and 3% raises it lasts about 16 years and 4 months.
Is this retirement withdrawal calculator free?
Yes, it is free and runs in your browser.
Can the retirement withdrawal calculator find a safe monthly amount?
Yes, the second mode finds the most you can withdraw for a set number of years.
What is the 4% rule?
Withdraw 4% of savings in the first year and raise it with inflation each year.
Does the calculator include inflation?
Yes, the withdrawal rises once a year by the rate you enter.
How long will my money last if I do not raise withdrawals?
Set inflation to 0 and the tool shows the result for a flat amount.
Related calculators
Other tools people use alongside this one.