If the monthly withdrawal is smaller than the monthly interest, your savings will never run out. Otherwise the balance falls slowly at first and faster later.
How to use the Savings Withdrawal Calculator
- Savings balance
- Annual interest rate
- Monthly withdrawal
- Yearly increase in withdrawals
- Years the savings should last
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter your savings balance, the interest rate, the monthly withdrawal, yearly withdrawal increase and the number of years the money should last.
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
| Field | What to enter |
|---|---|
| Savings balance | Amount in your currency |
| Annual interest rate | In % |
| Monthly withdrawal | Amount in your currency |
| Yearly increase in withdrawals | In % |
| Years the savings should last | A number |
What each result means
- In years = [How long the savings last]÷12
- Monthly withdrawal to last your chosen years = [Savings balance]÷gpv([Annual interest rate]÷1200, [Years the savings should last]×12, 1, [Monthly growth], 0)
- Withdrawal that never runs out (interest only) = [Savings balance]×[Annual interest rate]÷1200
Example values
How the main result changes when Savings balance changes and everything else stays at the example values above:
| Savings balance | How long the savings last (months) |
|---|---|
| 150,000 | 86 |
| 225,000 | 141 |
| 300,000 | 208 |
| 375,000 | 295 |
| 450,000 | 417 |
Formula
Months it lasts = nper(i, withdrawal, balance), i = rate ÷ 12Withdrawal for a duration = pmt(i, months, balance)With growing withdrawals the money runs out soonerWorked example
Inputs — Savings balance: $300,000; Annual interest rate: 4 %; Monthly withdrawal: $2,000; Yearly increase in withdrawals: 0 %; Years the savings should last: 20.
Results — How long the savings last = 208 months; In years = 17.4; Total withdrawn = $416,581.07; Monthly withdrawal to last your chosen years = $1,817.94; Withdrawal that never runs out (interest only) = $1,000.00.
Frequently asked questions
How long will my savings last?
Divide the balance by your withdrawals, adjusted for interest – this calculator does it exactly.
How much can I withdraw so it never runs out?
No more than the interest it earns.
Should I account for inflation?
Yes – rising withdrawals use up savings faster.
What formula does the Savings Withdrawal Calculator use?
Months it lasts = nper(i, withdrawal, balance), i = rate ÷ 12.