# Retirement Withdrawal Calculator

URL: https://speedycalculator.com/calculators/finance/retirement-withdrawal/
Last updated: 2026-10-25

> The retirement withdrawal calculator works out how much you can withdraw each year from your retirement savings – rising with inflation – so the money lasts as long as you need, or how long a chosen withdrawal will last.

## Inputs

- Savings at retirement
- Years the money should last
- Expected annual return (%)
- Inflation (%)
- Or: first-year withdrawal to test

## Results

- Sustainable first-year withdrawal
- Per month (first year)
- Withdrawal rate
- Final-year withdrawal
- Total withdrawn
- How long the tested withdrawal lasts

## Formula

```
First withdrawal = balance ÷ growing-annuity factor = B × (r − g) ÷ ((1 − ((1 + g) ÷ (1 + r))^n)(1 + r)) (withdrawals at the start of each year)
Duration of a fixed real withdrawal: years until the balance reaches zero
```

## Explanation

The "4% rule" says withdrawing 4% in year one and raising it with inflation has historically lasted 30 years. Flexible spending – cutting back after bad market years – makes savings last longer.

### How to use the Retirement Withdrawal Calculator

- **Savings at retirement**
- **Years the money should last**
- **Expected annual return**
- **Inflation**
- **Or: first-year withdrawal to test**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter your savings at retirement, the years the money must last, the expected return, inflation and, optionally, a withdrawal amount to test.

### Tips

- Start early – time does more of the work than the amount you save.
- Take the full employer match if your plan offers one.
- Plan with a cautious return (4–6% after inflation) and check again every year.
- Know the contribution limits and required minimum distribution rules for your accounts.

### Common mistakes to avoid

- Ignoring inflation when setting a retirement target.
- Underestimating how long retirement can last.
- Withdrawing early and paying penalties and taxes.

### Inputs explained

FieldWhat to enterSavings at retirementAmount in your currencyYears the money should lastA numberExpected annual returnIn %InflationIn %Or: first-year withdrawal to testAmount in your currency

### What each result means

- **Sustainable first-year withdrawal** = [Savings at retirement]÷gpv([Expected annual return]÷100, [Years the money should last], 1, [Inflation]÷100, 1)
- **Per month (first year)** = [Sustainable first-year withdrawal]÷12
- **Withdrawal rate** = [Sustainable first-year withdrawal]÷[Savings at retirement]×100
- **Final-year withdrawal** = [Sustainable first-year withdrawal]×(1 + [Inflation]÷100)^([Years the money should last] - 1)

### Example values

How the main result changes when **Savings at retirement** changes and everything else stays at the example values above:

Savings at retirementSustainable first-year withdrawal400,00018,504.69600,00027,757.03800,00037,009.371,000,00046,261.711,200,00055,514.061,600,00074,018.74

## Worked example

Inputs — Savings at retirement: $800,000; Years the money should last: 30; Expected annual return: 5 %; Inflation: 2.5 %; Or: first-year withdrawal to test: $40,000.

Results — **Sustainable first-year withdrawal = $37,009.37**; Per month (first year) = $3,084.11; Withdrawal rate = 4.63 %; Final-year withdrawal = $75,736.25; Total withdrawn = $1,624,811.43; How long the tested withdrawal lasts = 26.8 years.

## FAQ

**How much can I withdraw from retirement savings?**
About 4% in the first year, then adjust for inflation, for a 30-year retirement.

**What if markets fall early in retirement?**
Sequence risk – reduce withdrawals temporarily or keep a cash buffer.

**Should withdrawals rise with inflation?**
Yes, to keep the same buying power.

**What formula does the Retirement Withdrawal Calculator use?**
First withdrawal = balance ÷ growing-annuity factor = B × (r − g) ÷ ((1 − ((1 + g) ÷ (1 + r))^n)(1 + r)) (withdrawals at the start of each year).