Retirement Withdrawal Calculator

Will your nest egg last? Enter your savings, how much you plan to withdraw each year, and your assumptions for returns and inflation. This calculator shows how many years your money survives, your monthly income, and how your plan compares to the famous 4% rule.

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Withdrawal Plan

How long your savings last

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Your Money Lasts
Monthly Income (year 1)
Your Withdrawal Rate
4% Rule Amount
Total Withdrawn

The retirement question that keeps people up at night

Accumulating a nest egg is only half the battle. The harder, scarier question comes at retirement: how much can you actually pull out each year without running dry before you run out of life? Withdraw too little and you needlessly pinch pennies in the years you should be enjoying. Withdraw too much and you risk the nightmare scenario of outliving your money. This calculator models the tug-of-war between three forces — your withdrawals draining the account, investment returns refilling it, and inflation quietly forcing you to take out more each year just to maintain the same lifestyle.

That inflation piece is the part casual estimates miss. A $45,000 withdrawal feels fixed, but to buy the same groceries and pay the same bills in twenty years you might need $80,000 or more. A realistic plan increases your withdrawal every year to keep pace with rising prices, which is exactly what this tool does — it grows your annual withdrawal by your inflation assumption while compounding the remaining balance at your expected return. When the two forces cancel out, your money can last decades; when withdrawals outrun returns, you'll see the timeline shrink fast. Watching how sensitive the result is to small changes in return or withdrawal is the single best argument for building in a margin of safety.

This is also where the famous 4% rule comes from. Research suggested that withdrawing about 4% of your starting balance in year one, then adjusting for inflation annually, gave a high probability of lasting at least 30 years through historical market conditions. The calculator shows you what 4% of your nest egg would be so you can sanity-check your own plan against that benchmark. Remember it's a guideline, not a guarantee — real markets don't deliver smooth average returns, and a run of bad years early in retirement (what advisors call sequence-of-returns risk) can do outsized damage. Treat the output as a planning compass and stay flexible enough to trim withdrawals when markets sag.

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Inflation Bites

Your withdrawals must rise yearly to keep their buying power. A "fixed" income quietly shrinks over decades.

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The 4% Benchmark

Drawing ~4% of your starting balance, adjusted for inflation, has historically lasted about 30 years.

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Sequence Risk

Poor returns early in retirement hurt most. Staying flexible with withdrawals protects against bad timing.

FAQ

The 4% rule is a retirement guideline suggesting you withdraw 4% of your portfolio in the first year, then increase that dollar amount by inflation each year afterward. Based on historical market data, this approach gave retirees a strong chance of their money lasting at least 30 years. On a $1 million portfolio, that's $40,000 in year one. It's a useful starting benchmark, not an ironclad guarantee.
For a balanced retirement portfolio, many planners use long-run return assumptions of around 5%–7% and inflation around 2.5%–3%. Being conservative is wise — assuming a slightly lower return and slightly higher inflation builds in a safety margin. Since retirees usually shift toward bonds and cash for stability, an all-stock historical average would be too optimistic for most withdrawal plans.
If you withdraw faster than your portfolio can replenish through returns, the balance erodes and eventually hits zero — and inflation accelerates the problem by pushing withdrawals higher each year. If this calculator shows your money lasting fewer years than you expect to live, the fixes are to lower your annual withdrawal, work or earn a little longer, delay Social Security to boost guaranteed income, or build a larger nest egg before retiring.

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: IRS retirement limits, Social Security Administration