What does this retirement savings calculator estimate?
This calculator estimates how long retirement savings may last when you take yearly withdrawals. It uses your current savings, your first-year withdrawal, an expected annual return, and an annual increase in withdrawals.
The result is a projection, not a promise. Market returns can arrive in a bad order, inflation can run higher than expected, and taxes or fees can change the real result.
Use the output as a planning check. If the estimate feels tight, try a lower withdrawal, a longer planning horizon, or a more conservative return.
How is the estimate calculated?
The calculator uses a simple year-by-year projection. Each year starts with a withdrawal. The remaining balance then grows or shrinks by the return you enter.
Balance after year = (starting balance - withdrawal) x (1 + return)The next year’s withdrawal increases by the inflation field:
Next withdrawal = current withdrawal x (1 + inflation)If a withdrawal is larger than the remaining balance, the calculator shows a partial final year. If savings do not run out during the planning horizon, it shows the horizon plus sign.
How to use this calculator
- Enter your current retirement savings.
- Enter the first-year amount you plan to withdraw.
- Enter an expected annual return.
- Enter the yearly withdrawal increase for inflation or lifestyle changes.
- Enter your starting age and planning horizon.
- Read the estimated duration, projected age, and ending balance.
Only include the amount you need from savings. If Social Security, a pension, part-time work, or rental income will cover some spending, lower the annual withdrawal input.
Example: $500,000 with $30,000 withdrawals
Say you start retirement with $500,000. You plan to withdraw $30,000 in the first year. You enter a 4% annual return and a 2% annual withdrawal increase.
The first-year withdrawal rate is:
$30,000 / $500,000 = 6%In the first year, the calculator subtracts $30,000. The remaining $470,000 then grows by 4%.
$470,000 x 1.04 = $488,800The next withdrawal rises by 2%.
$30,000 x 1.02 = $30,600The calculator repeats this process until the account runs out or reaches the planning horizon.
What can change the result?
Investment return is a major driver. Investor.gov notes that time horizon and risk tolerance matter when choosing investments. A portfolio with more risk may have higher long-term return potential, but it can also lose value.
Inflation also matters. If your spending rises each year, later withdrawals can be much larger than the first withdrawal. Medical costs, taxes, housing, and family support can also change spending.
The calculator does not model required minimum distributions, tax brackets, account types, health care costs, or market sequence risk. A real retirement plan should look at all of those.
Ways to use the estimate
Run several versions. Try a lower return, higher inflation, or a longer planning horizon. This shows how sensitive the result is to your assumptions.
Then compare the annual withdrawal with other income. The Social Security Administration offers a Retirement Estimator that can help you review Social Security benefits. Add pension, annuity, or work income if you have it.
If you are planning for family education costs too, use the Saving for College Calculator. You can also browse all Finance & Budgeting calculators.
Limitations
This calculator uses a steady return every year. Real markets do not work that way. A large loss early in retirement can hurt more than the same loss later.
It also ignores taxes and investment fees. If withdrawals come from a traditional retirement account, taxes may reduce what you can spend. Use this as an estimate, not personal financial advice.