Your savings last until withdrawals, rising with inflation, use up the balance plus its investment growth. For example, $500,000 lasts about 16 yr 4 mo at $3,000 a month, and $1 million lasts about 27 yr 0 mo at $4,000 a month, assuming a 5% return and 3% inflation.
How to use this calculator
- Enter your total retirement savings today.
- Enter how much you plan to take each month from savings, after Social Security, pensions and other income.
- Enter an expected annual return after fees and an inflation rate.
- Read how long your money lasts and your initial withdrawal rate.
- Enter a target number of years to see the largest starting monthly withdrawal that lasts that long.
- Open the year-by-year table to see the balance at the end of each year.
How it's calculated
The calculator simulates your account month by month:
- At the start of each month, the withdrawal comes out of the balance.
- What is left grows at your annual return, compounded monthly: balance × (1 + r)1/12.
- Every 12 months, the monthly withdrawal rises by the inflation rate.
- When the balance is smaller than the next withdrawal, the money has run out. The last partial month is counted as a fraction.
The “Max monthly withdrawal” figure searches for the starting withdrawal that makes the money last exactly your target number of years, using the same simulation. The initial withdrawal rate is your first year's withdrawals ÷ savings — the figure the 4% rule is based on.
Worked examples
All examples assume a steady 5% return and 3% inflation. These are assumptions for illustration, not predictions.
$500,000 at $3,000 a month
The initial withdrawal rate is $36,000 ÷ $500,000 = 7.2%, well above 4%. The money lasts 16 yr 4 mo. Cutting the withdrawal to $2,000 a month (4.8%) stretches it to 27 yr 0 mo.
The 4% rule on $1 million
4% of $1,000,000 is $40,000 a year, or $3,333 a month. With inflation raises, it lasts 34 yr 8 mo under these assumptions. If returns were only 4%, it would last 29 yr 0 mo.
How much can $750,000 pay for 25 years?
Solving for 25 years gives a starting withdrawal of $3,189 a month, rising 3% each year after that.
How long will my money last? Reference table
Years your savings last at each starting monthly withdrawal (5% return, withdrawals rising 3% a year).
| Savings | $2,000/mo | $3,000/mo | $4,000/mo | $5,000/mo | $6,000/mo | $8,000/mo |
|---|---|---|---|---|---|---|
| $250,000 | 11 yr 9 mo | 7 yr 6 mo | 5 yr 6 mo | 4 yr 4 mo | 3 yr 7 mo | 2 yr 8 mo |
| $500,000 | 27 yr 0 mo | 16 yr 4 mo | 11 yr 9 mo | 9 yr 2 mo | 7 yr 6 mo | 5 yr 6 mo |
| $750,000 | 48 yr 9 mo | 27 yr 0 mo | 18 yr 10 mo | 14 yr 6 mo | 11 yr 9 mo | 8 yr 6 mo |
| $1,000,000 | 86 yr 9 mo | 40 yr 5 mo | 27 yr 0 mo | 20 yr 4 mo | 16 yr 4 mo | 11 yr 9 mo |
| $1,500,000 | 100+ years | 86 yr 9 mo | 48 yr 9 mo | 34 yr 8 mo | 27 yr 0 mo | 18 yr 10 mo |
| $2,000,000 | 100+ years | 100+ years | 86 yr 9 mo | 54 yr 5 mo | 40 yr 5 mo | 27 yr 0 mo |
How long will $1 million, $500k or $400k last in retirement?
The same assumptions (5% return, withdrawals rising 3% a year), for the three balances people ask about most. Read across to your planned monthly withdrawal.
| Monthly withdrawal | $400,000 | $500,000 | $1,000,000 |
|---|---|---|---|
| $1,500 | 29 yr 5 mo | 40 yr 5 mo | 100+ years |
| $2,000 | 20 yr 4 mo | 27 yr 0 mo | 86 yr 9 mo |
| $2,500 | 15 yr 7 mo | 20 yr 4 mo | 54 yr 5 mo |
| $3,000 | 12 yr 8 mo | 16 yr 4 mo | 40 yr 5 mo |
| $4,000 | 9 yr 2 mo | 11 yr 9 mo | 27 yr 0 mo |
| $5,000 | 7 yr 2 mo | 9 yr 2 mo | 20 yr 4 mo |
To make each balance last 30 years, the starting monthly withdrawal is about $1,481 for $400,000, $1,851 for $500,000, $3,702 for $1,000,000. Use this page as a savings withdrawal calculator, a retirement drawdown calculator or a 4 percent rule calculator: enter 4% of your balance ÷ 12 as the monthly withdrawal.
Monthly withdrawal that lasts 20, 25, 30 or 35 years
| Savings | 20 years | 25 years | 30 years | 35 years |
|---|---|---|---|---|
| $250,000 | $1,271 | $1,063 | $926 | $828 |
| $500,000 | $2,542 | $2,126 | $1,851 | $1,657 |
| $750,000 | $3,812 | $3,189 | $2,777 | $2,485 |
| $1,000,000 | $5,083 | $4,252 | $3,702 | $3,313 |
| $1,500,000 | $7,625 | $6,378 | $5,553 | $4,970 |
| $2,000,000 | $10,166 | $8,504 | $7,405 | $6,626 |
The 4% rule and what the research found
The 4% rule comes from William Bengen's 1994 paper in the Journal of Financial Planning. He tested withdrawals against U.S. market history from 1926 and found that a first-year withdrawal of 4%, raised with inflation each year, never ran out in less than 33 years for portfolios with 50–75% in stocks. The 1998 “Trinity study” by Cooley, Hubbard and Walz found that a 4% inflation-adjusted withdrawal lasted 30 years in 95% of historical periods with a 50/50 stock/bond mix, and 98% with 75% stocks.
Both studies used real market history, with good and bad years in sequence. This calculator uses one steady return, so treat it as a planning estimate, not a guarantee.
What affects how long your money lasts
- Withdrawal rate. The single biggest lever. Compare the rows in the table above: small cuts in monthly spending add years.
- Sequence of returns. A market fall in your first years of retirement does more damage than the same fall later, because you are selling investments while prices are low. A steady-return model can't show this, so leave a margin.
- Inflation. Higher inflation raises your withdrawals faster and shortens the timeline.
- Taxes. Distributions of pre-tax money from pensions and retirement plans are generally taxable income unless you made after-tax contributions (IRS Topic 410). Include the tax in your monthly withdrawal.
- Other income. Social Security, pensions, annuities and part-time work reduce what you need to draw from savings.
When not to rely on this alone
- If your spending will change a lot — for example, a mortgage ending or high medical costs later.
- If you plan large one-off withdrawals, such as buying a car or helping family.
- If most of your savings are in tax-deferred accounts, required minimum distributions starting at age 73 (IRS) may force you to withdraw more than you planned, even if you reinvest it.
This calculator is for general information and is not financial, tax or investment advice. A fee-only financial planner can stress-test your plan against historical and simulated markets.
Related: estimate a federal retirement balance with the TSP calculator, or turn a salary into an hourly rate with the hourly to salary calculator.
Before age 59½, a withdrawal can cost a 10% additional tax: the 401(k) early withdrawal calculator estimates it. To see what cash earns while you wait, try the Treasury bill calculator.
Frequently asked questions
How long will $500,000 last in retirement?
Withdrawing $3,000 a month (rising 3% a year) with a 5% return, $500k lasts about 16 yr 4 mo. At $2,000 a month it lasts about 27 yr 0 mo; at $4,000 a month, about 11 yr 9 mo.
How long will $1 million last in retirement?
At $4,000 a month rising 3% a year with a 5% return, about 27 yr 0 mo. At $5,000 a month, about 20 yr 4 mo. At $6,000 a month, about 16 yr 4 mo.
How long will $400k last in retirement?
At $2,000 a month rising 3% a year with a 5% return, $400,000 lasts about 20 yr 4 mo. At $1,500 a month, about 29 yr 5 mo; at $3,000 a month, about 12 yr 8 mo.
How much can I withdraw each month so my money lasts 30 years?
With the same 5% return and 3% inflation assumptions, about $1,851 a month to start from $500,000, or $3,702 from $1 million. Enter your own numbers in 'Want it to last' for your figure.
What is the 4% rule?
Withdraw 4% of your savings in year one, then raise that dollar amount with inflation each year. William Bengen (1994) found that in U.S. data since 1926 this never ran out in less than 33 years with 50–75% in stocks. The 1998 Trinity study found it lasted 30 years in 95% of historical periods for a 50/50 stock/bond mix, and 98% for 75% stocks.
Does this include Social Security?
No. Enter only the amount you need to withdraw from savings after pensions and Social Security. If Social Security covers $2,000 of $5,000 in monthly spending, enter $3,000.
What return should I enter?
Use a return you expect after investment fees, for the mix you will hold in retirement. A higher figure makes money last longer on paper but adds risk. The 5% used in the examples on this page is an assumption for illustration, not a forecast.
What inflation rate should I use?
The calculator raises your withdrawal by the inflation rate once a year to keep your spending power level. The 3% in the examples is an assumption. Try a higher rate to see how sensitive your plan is.
Why does the calculator say 100+ years?
If your return is high enough that the balance keeps growing after withdrawals, the money doesn't run out. The simulation stops at 100 years and shows that as 100+ years.
Do I have to take money out at a certain age?
Yes, from most tax-deferred accounts. The IRS generally requires minimum distributions from traditional IRAs and workplace plans starting in the year you reach age 73, with the first one due by April 1 of the following year. Roth IRAs have no required withdrawals while the owner is alive.
Sources & method
- Bengen (1994), 'Determining Withdrawal Rates Using Historical Data', Journal of Financial Planning 7(4) — FPA reprint
- Cooley, Hubbard & Walz (1998), 'Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable', AAII Journal (Trinity study)
- IRS — Retirement topics: required minimum distributions (RMDs)
- IRS Topic 410 — Pensions and annuities (taxability)
Results are estimates for general information. Found an error? It helps everyone — see our methodology.