How the Retirement Spending Calculator works
Estimate how long retirement savings may last. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this retirement spending calculator to estimate how long savings may last when combined with pension or benefit income. It is useful for checking whether monthly spending needs are reasonable against your savings.
Formula
Monthly draw from savings = monthly spending need - monthly pension or benefits
- Retirement savings is the amount available to draw down.
- Monthly spending need is the total monthly spending target.
- Monthly income reduces the amount that must come from savings.
- Annual return estimates growth on remaining savings.
Worked example
For $750,000 in savings, $5,000 monthly spending, $1,800 in monthly income and a 4% annual return, the calculator estimates how long savings may support the gap.
Common mistakes
- Ignoring inflation in future spending.
- Assuming investment returns arrive smoothly every year.
- Forgetting large irregular costs such as healthcare, housing repairs or travel.
FAQs
Does this predict an exact retirement end date?
No. It is a simplified projection based on steady spending, income and return assumptions.
Why subtract pension income?
Income from pensions or benefits reduces the amount you need to withdraw from savings.
Should I test higher spending?
Yes. Testing higher spending or lower returns can show how sensitive the plan is.