# Savings Withdrawal Calculator

Calculate how long savings last with regular withdrawals. Factor in investment returns and inflation. Free savings withdrawal calculator.

## What this calculates

Find out how long your savings or retirement nest egg will last if you withdraw a fixed amount each month. This calculator accounts for investment returns on the remaining balance and optional inflation adjustments to your withdrawals.

## Inputs

- **Starting Balance** ($) — min 0 — Your current savings or investment balance.
- **Monthly Withdrawal** ($) — min 0 — Amount you plan to withdraw each month.
- **Annual Return Rate** (%) — min 0, max 20 — Expected annual rate of return on remaining balance.
- **Annual Inflation Rate** (%) — min 0, max 15 — Expected annual inflation rate (withdrawals increase by this amount yearly).

## Outputs

- **Months Until Depleted** — How many months your savings will last.
- **Years Until Depleted** — How many years your savings will last.
- **Total Amount Withdrawn** — formatted as currency — Total money withdrawn over the entire period.
- **Total Interest Earned** — formatted as currency — Total interest or returns earned on the remaining balance.

## Details

Knowing how long your money will last is one of the most important questions in retirement planning. The answer depends on three things: how much you have, how much you take out, and what returns your remaining balance earns.

For example, $500,000 with $3,000 monthly withdrawals and a 5% annual return will last about 23 years. Without any returns, the same balance only lasts about 14 years. That is the power of keeping your money invested even during the withdrawal phase.

Inflation is the hidden factor most people overlook. If you withdraw $3,000 per month today, you will need $4,030 per month in 10 years just to maintain the same purchasing power at 3% inflation. This calculator lets you factor in inflation-adjusted withdrawals so you can see a more realistic timeline.

The classic 4% rule suggests withdrawing 4% of your initial balance per year (adjusted for inflation) to make your money last roughly 30 years. On a $500,000 portfolio, that is $20,000 per year or $1,667 per month. This rule assumes a balanced stock/bond portfolio and has held up historically through most 30-year periods.

## Frequently Asked Questions

**Q: What is the 4% rule?**

A: The 4% rule is a retirement planning guideline that suggests withdrawing 4% of your initial portfolio value in the first year of retirement, then adjusting that amount for inflation each subsequent year. Based on historical market data, this approach has a high probability of making your money last at least 30 years. For a $500,000 portfolio, you would start with $20,000 per year ($1,667/month). The rule assumes a diversified portfolio of stocks and bonds.

**Q: How does investment return affect how long savings last?**

A: Investment returns significantly extend how long your savings last by generating income on the remaining balance. At $3,000/month withdrawals from $500,000: with 0% returns, the money lasts about 14 years. At 4% returns, it lasts about 20 years. At 6%, it stretches to about 28 years. Even a 1-2% difference in annual returns can add several years to your savings life. Keeping a portion of your portfolio in growth assets during retirement is important for this reason.

**Q: Should I account for inflation in my withdrawals?**

A: Yes. Inflation erodes purchasing power over time. If you withdraw a fixed dollar amount, your real (inflation-adjusted) income decreases each year. At 3% annual inflation, $3,000 today buys only what $2,228 buys in 10 years. Most retirement planning advice recommends increasing your withdrawals by the inflation rate annually. This shortens the life of your savings but maintains your standard of living.

**Q: What withdrawal rate should I use?**

A: The sustainable withdrawal rate depends on your time horizon, portfolio allocation, and risk tolerance. Common guidelines: the 4% rule targets a 30-year horizon, while some financial planners now suggest 3.5% for more conservative planning or longer retirements. If you retire early (before 60), consider a 3-3.5% rate since your money needs to last longer. Running this calculator with different withdrawal amounts helps you find the right balance between monthly income and longevity.

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Source: https://vastcalc.com/calculators/finance/savings-withdrawal
Category: Finance
Last updated: 2026-04-08