How the Retirement Withdrawal Calculator works
Estimate a sustainable monthly withdrawal. 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 withdrawal calculator to estimate a monthly withdrawal amount from savings over a set retirement period. It is useful for turning a retirement balance into a rough spending number.
Formula
Monthly withdrawal = savings amortized over the withdrawal period using the expected return
- Retirement savings is the starting balance available for withdrawals.
- Annual return estimates growth on the remaining balance.
- Years of withdrawals is the time horizon for drawing down savings.
Worked example
For $750,000 in retirement savings, a 4% annual return and 30 years of withdrawals, the calculator estimates a monthly withdrawal amount.
Common mistakes
- Assuming returns arrive smoothly every year.
- Ignoring inflation and taxes on withdrawals.
- Using the full monthly estimate without leaving room for market downturns.
FAQs
Is this a safe withdrawal rate?
No. It estimates a level withdrawal amount from the inputs, but safe withdrawal planning depends on market returns, inflation, taxes and lifespan.
Does this include pension income?
No. Use the retirement income calculator if you want to combine withdrawals with pension or benefit income.
What if returns are lower?
Lower returns generally reduce the sustainable monthly withdrawal. Test several assumptions.