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Investment withdrawal calculator

Test a yearly withdrawal from your savings against your return and inflation, and see whether the money outlasts the years you need.

Use the calculator Read the guide first

Example First year withdrawal $40,000

StockEducation Editorial Team · Updated · 15 min read · How we check our tools

The calculator

Check how long your money lasts

Output Calculated from your inputs

Before you start: “Lasts” means lasts under a steady return and steady inflation; real markets vary year to year.

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↓ Investment Withdrawal Calculator ↓

Your Withdrawal Details

Enter your starting portfolio, withdrawal rate, investment return, inflation rate and how long the money needs to last.

1
Your total investment portfolio value at the start of retirement.
2
The percentage of your portfolio withdrawn in the first year.
3
How many years you need the portfolio to support withdrawals.
4
Your assumed average annual portfolio return.
5
Used if withdrawals are increased each year to maintain purchasing power.
6
Choose whether annual withdrawals rise with inflation or stay fixed.

Your Withdrawal Plan

Enter your details to see if your portfolio may last.

Illustration only: the first withdrawal is portfolio × rate. Each year, withdraw first, grow the remaining balance by a constant return, then increase the next withdrawal by inflation if selected. Dollars are nominal. Tax, fees, market falls and sequence risk are excluded; the age column simply starts at 65. Full method and limits.

Annual Withdrawal
—
First year income
Monthly Income
—
From portfolio
Final Balance
—
After selected period
Depletion Year
—
Based on assumptions

Portfolio Sustainability

Run the calculator to estimate whether the withdrawal plan may last.

Year-by-Year Projection

YearAge (65+)WithdrawalBalance
Click Calculate to see the projection

Recommendations

  • Enter your details above to get educational planning notes.
Educational withdrawal estimate: assumptions and limits

This illustrates one constant return and withdrawal policy. The first withdrawal is a percentage of the starting portfolio; later withdrawals are fixed or rise by one inflation assumption. Withdrawals occur at the start of the year, then the remaining balance grows.

It excludes tax, fees, changing returns, sequence risk, other income and personal circumstances. Depletion and final balance are scenario outputs, not a safe withdrawal rate or a guarantee that money will last. Compare assumptions and obtain qualified advice for personal retirement decisions.

DisclaimerTerms of Use

Can I plan my retirement with this?

Treat it as an illustration, not a plan.

This shows what happens if one set of assumptions holds for the next few decades. It will not.

It uses one inflation assumption when selected. It does not account for changing inflation, market falls, changes to your income or job, tax law changes, healthcare costs, or how long you live. It assumes steady returns, and markets do not deliver those.

Decisions this size need a licensed professional who knows your full situation.

DisclaimerTerms of Use

Educational content only. Projections assume constant annual returns and inflation. They do not reflect actual market variability, fees, taxes or sequence of returns risk. Use as a planning guide only and confirm with a qualified financial adviser.

How to use it (three steps)

Enter your portfolio, the share you plan to withdraw in the first year, how long it needs to last, your expected return and inflation, then press Calculate Sustainability. Not sure where to start? Load an example.

  1. 1Enter your portfolio, first year withdrawal rate, years needed, return and inflation
  2. 2Press Calculate Sustainability and read how long the money lasts
  3. 3Cut the withdrawal rate by half a point and see the extra years

Your result in words

Retirement income

Your result will appear here once the calculator runs.

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    Quick answer

    How long will my money last in retirement?

    It depends on how much you take out, what the money earns and how much prices rise. Take 4% of $1,000,000 in the first year, which is $40,000 or $3,333 a month, raise it 3% a year for inflation and earn 7%, and the money lasts the full 30 years with $2,064,313 left. Take 6% instead and it runs out in year 26. Earn 4% instead of 7% and even a 4% withdrawal runs out in year 29.

    First year withdrawal$40,000
    Monthly income$3,333
    Left after 30 years$2,064,313
    At 6%, runs out inYear 26

    Checked against IRS · see sources

    Key takeaways
    • Withdraw, then grow. Each year the money left keeps working.
    • The 4% rule. 4% of $1,000,000 is $40,000 a year, raised with inflation.
    • Rate matters. 6% runs out in year 26 in the default plan.
    • Return matters. At 4% returns, even 4% withdrawals run out in year 29.
    • Bad timing. Early market falls do the most damage.
    • Taxes. Traditional account withdrawals are taxed as income.

    How the calculator worksWhat withdrawal rate is safeBad timing riskTest yourself

    Part 1 of 3 · How it works

    How does a withdrawal plan work?

    Each year you take money out to live on, and whatever is left keeps growing. The plan works as long as growth keeps up with what you take.

    1

    What does the calculator do?

    1. Your first year’s withdrawal is your portfolio × your withdrawal rate.
    2. Each year it takes the withdrawal out first, then grows what is left at your expected return.
    3. If you choose to adjust for inflation, next year’s withdrawal rises by your inflation rate.
    4. It repeats for every year you chose and shows whether, and when, the money runs out.
    The first two years

    Year 1: take $40,000 from $1,000,000, leaving $960,000, which grows 7% to $1,027,200. Year 2: the withdrawal rises 3% to $41,200, and the balance ends at $1,055,020. In this plan the balance keeps rising because 7% growth beats 4% withdrawals.

    2

    What is the 4% rule?

    A rule of thumb from 1990s research on U.S. market history: start by withdrawing 4% of your portfolio, raise that amount with inflation each year, and the money has usually lasted about 30 years. It is a starting point, not a guarantee. Our lesson on the 4% rule covers where it holds up and where it does not.

    3

    Does the 4% apply to my balance every year?

    No. The 4% sets only the first year’s dollar amount. After that, the calculator raises the dollar amount by inflation and ignores what the balance did. That is the part many beginners miss. If your portfolio jumps 20% in a good year, your income does not jump with it, and if it falls 20%, your income does not fall either.

    Here is how the dollars move in the default plan. Year 1 pays $40,000. With 3% raises, year 10 pays about $52,191 and year 30 pays about $94,263. The payment more than doubles over three decades, so the portfolio has to keep earning enough to fund a bigger check each year.

    A smaller example uses the same rule. Start with $500,000 and a 4% rate, and the first year pays $20,000, or about $1,667 a month. Taking a fixed 4% of whatever the balance is each year is a different plan: your income would rise and fall with the market, but the dollar payments can shrink substantially. This percentage-of-current-balance method is not modeled here and does not protect against total investment loss.

    The rule

    A plan works while growth keeps up with what you take out.

    Marks Part 1 done

    Part 2 of 3 · What withdrawal rate is safe

    What changes how long the money lasts?

    The withdrawal rate and the return decide most of it. Small changes in either can add or remove years.

    4

    How much can I take out?

    What is left after 30 years from $1,000,000 at a 7% return

    Withdrawals rise 3% a year with inflation. Going from 4% to 6% turns a growing portfolio into one that runs out.
    5

    What if returns are lower?

    7% return$2,064,313 left
    5% return$343,115 left
    4% returnRuns out in year 29

    At 5% returns a 5% withdrawal runs out in year 25. The lower your expected return, the less you can safely take.

    One change at a time from the default plan
    ChangeResult after 30 yearsLasts?
    Withdraw 5% instead of 4%$677,327 leftYes
    Withdraw 6%Runs out in year 26No
    Return 5% instead of 7%$343,115 leftYes
    Return 4% instead of 7%Runs out in year 29No
    Inflation 4% instead of 3%$1,379,352 leftYes
    No inflation increases$3,569,333 leftYes

    All figures from this calculator on October 15, 2026. Illustrations, not forecasts or recommendations.

    6

    Why does a two point drop in return matter so much?

    Because growth is what pays for the raises. In year 1 of the default plan, $960,000 is left after the first withdrawal. At 7% it earns $67,200, far more than the $40,000 you took. At 5% it earns $48,000, still more, but the cushion is much thinner. As withdrawals climb 3% a year, that thinner cushion disappears years sooner.

    A useful shortcut is the real return: your return minus inflation. A 7% return with 3% inflation is roughly 4% of real growth. A 5% return with the same inflation is roughly 2%. A plan that takes 4% a year and earns only 2% after inflation has to eat into the principal, and once the principal shrinks, it earns even less.

    Inflation is usually measured with the Consumer Price Index, the average change in prices paid by urban consumers.4 Expert opinion on starting withdrawal rates tends to cluster between 3% and 5%, with no single right number.3

    The rule

    Take less when returns may be low. One point of withdrawal rate can decide the outcome.

    Marks Part 2 done

    Part 3 of 3 · Real life

    What does this withdrawal calculator leave out?

    The calculator uses the same return every year. Real retirements face uneven markets, taxes and spending that changes.

    7

    Why does the timing of bad years matter?

    If the market falls in the first years of retirement, you sell more shares to raise the same income, and those shares are gone when prices recover. The same average return with the bad years later does far less harm. This is called sequence risk, and it is the main reason many retirees start below 4% or cut spending after a bad year.

    8

    What about taxes and required withdrawals?

    Withdrawals from traditional 401(k)s and IRAs are taxed as income, so you may need to withdraw more than you spend. Required minimum distributions depend on birth year and account type; this calculator does not calculate them.1 Taking money out before 59½ usually adds a 10% additional tax, with some exceptions.2

    Your turn

    Build the full picture. The retirement calculator grows your savings to retirement, adds Social Security and checks whether your spending lasts to the age you choose.

    Open the retirement calculator Free, no signup.
    9

    How many years should I plan for?

    Longer than the average. The 2025 Social Security Trustees Report projected period life expectancy at age 65 of 18.4 more years for men and 21.0 for women under its intermediate assumptions. These are population averages, not individual predictions.5 An average is not a deadline; many people live longer. A married couple also has two lifetimes to cover. That is why many plans test 30 years from 65, not 20.

    Social Security changes how much the portfolio must carry. Suppose you spend $60,000 a year and Social Security pays $24,000. Your investments only need to supply $36,000, which is 3.6% of $1,000,000 instead of 6%. Enter that smaller number in the calculator.

    When you claim matters too. Starting benefits before full retirement age, which is 67 for anyone born in 1960 or later, lowers the monthly payment for life.6 A bigger check later means less pressure on your savings for the rest of retirement.

    The rule

    Leave a margin for bad timing, taxes and a longer life than you expect.

    Marks Part 3 done

    Mistakes to avoid

    Three mistakes to avoid, and what to do instead

    Withdrawing a fixed percent of a falling balance

    Most plans raise the dollar amount with inflation, which is different from taking the same percent each year. Know which you are modeling.

    Ignoring the order of returns

    Bad years early in retirement hurt far more than bad years later. Keep a cash buffer for the first few years.

    Forgetting that spending changes

    Many retirees spend less in their eighties than their sixties, then more on care. Build in some flexibility.

    Quick check

    Three quick questions and one why

    0 of 3 answered

    1. Using the 4% rule, how much would you withdraw in the first year from $750,000?

    Answer: B, $30,000.$750,000 × 4% = $30,000, or $2,500 a month.

    2. From $1,000,000 at a 7% return with withdrawals rising 3% a year, which withdrawal rate runs out within 30 years?

    Answer: D, 6%.6% runs out in year 26. 5% still leaves $677,327 and 4% leaves $2,064,313.

    3. Why can a market fall early in retirement do more damage than the same fall later?

    Answer: B, you sell more shares at low prices.Selling at low prices locks in losses. Those shares are not there to recover when the market does.
    Why: why does a 4% withdrawal keep growing at 7% but run out at 4%?

    At 7%, growth adds more each year than you take out, so the balance rises. At 4%, growth roughly matches the first withdrawal, but the withdrawal keeps rising 3% a year for inflation while growth does not, so eventually you take more than the portfolio earns.

    Common questions

    Investment Withdrawal Calculator FAQ

    How long will my money last in retirement?

    It depends mainly on three numbers: how much you take out, what the money earns and how fast prices rise. In this calculator’s default plan, taking $40,000 a year from $1,000,000, raised 3% a year for inflation, lasts the full 30 years at a 7% return. The same plan at a 4% return runs out in year 29, and a 6% withdrawal at 7% runs out in year 26. Test a lower return before you trust any single answer.

    What is the 4% rule?

    It is a rule of thumb for a first year withdrawal: take 4% of your portfolio, then raise that dollar amount by inflation each year. It came from 1990s studies of U.S. market history, where that pattern usually lasted about 30 years. On $1,000,000 it means $40,000 in year one, or about $3,333 a month. It is a starting point for planning, and it assumes a mix of stocks and bonds, not cash alone.

    Is 4% still a safe withdrawal rate?

    It is a reasonable place to start testing, but no rate is safe in every market. FINRA notes that expert opinion tends to fall between 3% and 5%. A lower rate makes sense if you retire early, expect lower returns or cannot cut spending in a bad year. A higher rate can work if you have other income, plan to spend less later or are willing to trim withdrawals after a market fall.

    How much can I withdraw from $1 million a year?

    At a 4% starting rate, $1,000,000 supports $40,000 in the first year, about $3,333 a month, before tax. In this calculator, raising that by 3% a year at a 7% return leaves about $2,064,313 after 30 years. Taking 5%, or $50,000, still lasts with about $677,327 left. Taking 6%, or $60,000, runs out in year 26. Withdrawals from traditional 401(k)s and IRAs are taxed as income, so spendable money is lower.

    Does the withdrawal calculator include Social Security, taxes or market crashes?

    No. It uses one steady return every year and leaves out taxes, fees, Social Security and market falls. That makes it good for seeing how rate, return and inflation interact, but it will look smoother than real life. Enter only what your investments must provide after other income, and test a lower return as a sensitivity check. A constant lower return does not model the timing of market losses. It uses only the numbers you type and fetches no market data.

    Should I raise my withdrawals for inflation?

    Most plans do, because a fixed income buys less each year. At 3% inflation, prices roughly double in about 24 years, so a fixed $40,000 would buy about half as much by then. In this calculator, turning inflation increases off leaves $3,569,333 after 30 years instead of $2,064,313, but that larger balance comes from accepting a shrinking lifestyle. Many retirees raise withdrawals in most years and skip a raise after a bad market year.

    Why does a market crash early in retirement hurt more?

    Because you sell more shares at low prices to raise the same income, and those shares are not there when the market recovers. This is called sequence risk. Two retirees with the same average return can end very differently if one meets the bad years first. The calculator uses a steady return, so it cannot show this effect. Common defenses are starting below 4%, holding a year or two of spending in cash and pausing raises after a fall.

    Is it a myth that you should never touch principal in retirement?

    Mostly, yes. Living only on interest and dividends is one approach, but the 4% rule assumes you spend some principal over time. In this calculator’s 4% plan at a 4% return, principal gets drawn down and runs out in year 29, while at 7% it grows. Spending principal is fine if the plan accounts for it. The real risk is spending it faster than your return and your timeline can support.

    Next steps

    You know what makes a portfolio last. Now learn how to invest it.

    A free account saves your course progress and opens the $1,000,000 practice simulator, where you can watch real U.S. stocks rise and fall with virtual money before any of your own is at stake.

    Create your free account Next lesson: The 4% rule

    Free, no card. Lessons and tools stay free to use without an account.

    Withdrawals on one card, and where to go next
    1. Step 1 · DoneHow a withdrawal plan works
      See it on one card
      1. Withdraw, then grow. Each year the money left keeps working.
      2. The 4% rule. 4% of $1,000,000 is $40,000 a year, raised with inflation.
      3. Rate matters. 6% runs out in year 26 in the default plan.
      4. Return matters. At 4% returns, even 4% withdrawals run out in year 29.
      5. Bad timing. Early market falls do the most damage.
      6. Taxes. Traditional account withdrawals are taxed as income.
    2. 2
      Step 2 · NowSee the whole plan

      Grow your savings to retirement and check that your spending lasts.

      Open the retirement calculator Free, no signup.
    3. 3
      Step 3Follow the learning path
      The learning pathFree

      Learn the rest in the right order

      Lessons, videos, tools and quizzes, ordered so each step builds on the last, from market basics to building a portfolio.

      Start the learning path

    Want the full sequence? See the course outline →

    Sources and assumptions

    1. IRS: Retirement plan and IRA required minimum distributions FAQs. Explains account-specific required minimum distributions; these are not modeled here.
    2. IRS Topic No. 558, Additional tax on early distributions from retirement plans other than IRAs. The 10% additional tax before age 59½ and its exceptions.
    3. FINRA: Managing your retirement portfolio. Expert withdrawal rates tend to cluster between 3% and 5%, and early withdrawals should be cautious.
    4. U.S. Bureau of Labor Statistics: Consumer Price Index. What the CPI measures, the usual yardstick for inflation.
    5. Social Security Administration: Period life expectancy, 2025 Trustees Report. Average remaining life expectancy at age 65.
    6. Social Security Administration: Starting your retirement benefits early. Claiming before full retirement age permanently lowers the monthly benefit.

    Method: the first withdrawal is the portfolio × the withdrawal rate. Each year the calculator withdraws first, grows the remaining balance at the constant return, then raises the next withdrawal by inflation if selected. The default example is $1,000,000, a 4% withdrawal rate, 30 years, a 7% return and 3% inflation with inflation adjusted withdrawals. Worked projections were checked against the calculator. The portfolio must be positive and no larger than $1 trillion. Table ages are illustrative, starting at 65, and do not set tax eligibility. A depleted final year may include a partial withdrawal: check the table. Results are in future dollars and exclude taxes, fees, market falls and sequence risk. All amounts are in U.S. dollars.

    Page history. October 24, 2026: V11 design and expanded guide integrated while preserving the checked withdrawal model, final-year wording, validation and sharing controls.

    StockEducation provides general education, not personal financial, tax or legal advice. Results are illustrations based on the assumptions you enter, not forecasts or promises of any return. Investing involves risk, including the loss of money you invest.

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