Savings Withdrawal Calculator: How Long Will My Savings Last?
A savings withdrawal calculator simulates a balance earning a constant monthly return while a fixed amount is withdrawn. It helps illustrate longevity risk but does not model market volatility, taxes, inflation, sequence risk, or changing spending.
Quick answer
If the monthly withdrawal is greater than the balance’s monthly earnings, the account eventually declines. Real investment returns are uneven, so use conservative scenarios rather than one optimistic average.
At a glance
- What it calculates
- Estimate how long savings may last with fixed monthly withdrawals and an assumed annual return.
- Who it is for
- US retirees and near-retirees testing how long a lump sum supports a monthly withdrawal.
- Coverage
- United States (federal rules; state and local rules vary)
- Data and assumptions
- A constant monthly return, level withdrawals taken at month end, and no inflation indexing, taxes, fees or market sequence risk.
- Cost
- Free, no signup, calculations run in your browser
- Last reviewed
- 2026-07-09
Calculator
How to use this calculator
- Enter the starting balance.
- Enter a conservative assumed annual return.
- Enter the fixed monthly withdrawal.
- Compare lower-return and higher-spending scenarios.
Explanation
What it is
A savings withdrawal calculator simulates a balance earning a constant monthly return while a fixed amount is withdrawn. It helps illustrate longevity risk but does not model market volatility, taxes, inflation, sequence risk, or changing spending.
How it works
The simulation credits one month of the assumed return and then subtracts the fixed withdrawal, repeating until the balance reaches zero.
When to use it
Use it when you need to know how long a lump sum supports a monthly withdrawal, or how much you can take without exhausting the balance.
Limitations
- The model uses a constant return and does not capture sequence-of-returns risk.
- Withdrawals are held flat in nominal terms, so purchasing power falls over time.
- Taxes, fees, Social Security, pensions and annuity income are excluded.
Key terms
- Withdrawal rate
- Annual withdrawals divided by the starting portfolio.
- Sequence risk
- The effect of receiving poor returns early while taking withdrawals.
- Real return
- Return after inflation.
- Longevity risk
- The possibility that savings are depleted during the owner’s lifetime.
Formula
The simulation credits one month of the assumed return and then subtracts the fixed withdrawal, repeating until the balance reaches zero.
Worked example
A $500,000 balance with $3,000 monthly withdrawals lasts much longer at a steady positive return than with no return, but real markets do not deliver a smooth monthly rate.
FAQ
How long will $500,000 last in retirement?
It depends on withdrawals, returns, inflation, taxes, fees, pensions, and market sequence. This tool gives a fixed-return scenario only.
What monthly withdrawal can I take forever?
No amount is guaranteed forever in real markets. If assumed monthly earnings equal the withdrawal, the simplified model does not decline, but volatility and inflation still matter.
Does this account for inflation?
No. You can manually increase the withdrawal for a conservative comparison, but this version assumes a fixed nominal amount.
Why should I test a lower return?
Average returns can hide volatility and bad early years. Lower-return scenarios provide a margin of safety.
Does this include Social Security or pension income?
No. Enter only the amount that must come from the savings balance after other income sources.
How much can I withdraw from savings each year without running out?
A common planning starting point is roughly 4% of the starting balance a year, adjusted for inflation, over a 30-year retirement. Lower it if you retire early, expect weaker returns, or cannot cut spending in a downturn.
Common mistakes
- Assuming a smooth average return; a poor first few years shortens the balance sharply.
- Using today's withdrawal amount for a 30-year horizon without inflation.
- Ignoring income tax on withdrawals from tax-deferred accounts.
- Overlooking required minimum distributions from retirement accounts.
Tips
- Test a return two or three percentage points lower than your base case.
- Increase the withdrawal each year in your own planning to reflect inflation, which this tool holds flat.
- Model Social Security and pension income separately and withdraw only the shortfall.
- Keep one to two years of withdrawals in cash to avoid selling in a downturn.
Sources and editorial review
Educational estimates only; not personalized financial, tax, legal, lending, investment, or insurance advice.