Retirement Withdrawal Calculator United States
This retirement withdrawal calculator estimates how long your savings last at a fixed annual withdrawal, and the sustainable income the 4% rule suggests.
What it does
The Retirement Withdrawal Calculator estimates how many years your retirement savings will last if you take a fixed amount out each year, and shows the sustainable annual income the 4% rule would suggest for the same portfolio.
Data sources & parameters
The figures below drive this calculator. We keep them aligned with the latest official guidance, and each result recalculates automatically whenever a value changes.
| Parameter | Value | Source | Last updated |
|---|---|---|---|
| Benchmark initial withdrawal rate used for the sustainable-income figure. Editorial assumption, not a government rule: the 4% starting rate is a research finding from Bengen (1994) and the Trinity study, popularised as the 4% rule. | 0.04 | Editorial | — |
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
Each year: balance = balance x (1 + return) - withdrawal, counted until the balance hits zero; safe income = starting balance x 4%
How it works
It starts with your portfolio balance, grows it by an assumed annual return, then subtracts your annual withdrawal, repeating year by year until the money runs out. It also multiplies your starting balance by 4% to show a widely used safe-withdrawal figure.
Where it is used
- Checking whether a planned annual spend will outlast your savings
- Comparing your withdrawal plan with the 4% rule benchmark
- Stress-testing how a lower return shortens how long a pot lasts
Worked example
Drawing $50,000.00 a year from a $500,000.00 pot with no growth, the balance lasts … years and … is withdrawn in total, while the 4% rule would point to … a year instead.
Your savings earn a return each year, and every withdrawal reduces the balance. Enter your portfolio balance, the amount you plan to take out each year and an assumed annual return, and this retirement withdrawal calculator projects how many years the money lasts. It also shows the income the 4% rule would suggest for the same starting balance, as a benchmark for your own plan.
How the projection works
The calculator runs a year-by-year simulation. It starts with your balance, grows it by the return you assume, and subtracts your annual withdrawal. What is left carries into the next year, and the process repeats until the balance can no longer cover a full withdrawal. The number of years it lasted is the headline result. No tax tables or contribution limits are involved, so the projection depends only on the three numbers you enter.
The 4% rule benchmark
The 4% rule suggests that withdrawing roughly 4% of your starting portfolio in your first year, then adjusting that amount for inflation, gives a reasonable chance of the money lasting about three decades. The calculator shows 4% of your starting balance as a sustainable income figure. If your planned withdrawal is well above it, your plan is more aggressive than the rule of thumb and may run down the pot faster. If it is below, you have some cushion.
Why the return assumption matters
Small changes in the assumed return have a large effect on how long savings last. A pot that would run dry in twelve years with no growth lasts much longer with even a modest return, because the earnings offset part of each withdrawal. If the return in a year is larger than the amount you take out, the balance rises and the savings sustain themselves; the calculator caps that case at 100 years and reports it as 100+. Markets do not deliver a smooth return every year, so test a pessimistic figure as well as an optimistic one.
Using the result
If the projection is shorter than the retirement you are planning for, you can spend less each year, aim for a higher return by changing your asset mix, or start with a larger balance by saving more or working longer. Lowering the annual withdrawal often has the most immediate effect, since it reduces the outflow and leaves more invested to compound. Try each change in turn to see which helps most in your case.
A worked example
Suppose you retire with $500,000 and plan to withdraw $50,000 a year. With no investment growth, the balance falls by $50,000 a year, so it lasts exactly 10 years. The 4% rule would point to an income of $20,000 a year from the same pot. Drawing 50,000 is far more aggressive than that benchmark, and it would need substantial investment returns to last a full retirement.
Assumptions and limitations
This is a planning projection, not a guarantee. It assumes a constant return every year, while real markets rise and fall, and poor returns early in retirement can shorten how long savings last even if the average looks fine. It works in before-tax, present-day dollars, so it does not model income tax on withdrawals from traditional retirement accounts or raise your spending as prices rise. It also assumes a level withdrawal instead of one that flexes with your portfolio. For a plan you intend to rely on, review these figures with a financial professional who can factor in taxes, inflation and market risk.
About This Retirement Withdrawal Calculator
Use this retirement withdrawal calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Frequently asked questions
How long will my retirement savings last?
What is the 4% rule?
Does the calculator account for taxes and inflation?
What return assumption should I use?
What happens if my return covers the whole withdrawal?
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