Withdrawal plan calculator: how long will your money last?
Enter your capital, a monthly withdrawal and an expected return to see in which year the money runs out — or whether the returns cover the withdrawals and the capital lasts.
Your capital lasts
26 years and 1 month
$18,000 withdrawn per year at 4% expected return.
Fine-tune in the full simulator →How the calculation works
The twelve withdrawals of a year come off the balance at the start of the year, then the expected return is applied to what is left. Once the balance no longer covers a full year, the calculator counts the full years up to that point plus the monthly withdrawals the remainder still covers; the withdrawal after that can no longer be paid in full.
Because only the remainder earns the return, the balance only holds if the return on that remainder is at least as large as the annual withdrawal — then the plan lasts indefinitely. If it falls short, the balance shrinks even when it lasts beyond 60 years; the calculator then shows what is left after 60 years.
The withdrawal stays constant in nominal terms. To keep purchasing power constant, use a real return (approximately return minus inflation; exactly (1 + r)/(1 + i) − 1, so 3.92 % rather than 4 % at 6 % and 2 %) — the result is then in today's money.
Frequently asked questions
Does this account for inflation?
No, the monthly withdrawal stays the same every year. Enter a real return to approximate a withdrawal that keeps its purchasing power: approximately return minus inflation, exactly (1 + r)/(1 + i) − 1 — so 3.92 % rather than 4 % at 6 % and 2 %.
What withdrawal rate is sustainable?
The 4 % rule says a first-year withdrawal of 4 % of the capital, adjusted for inflation afterwards, has historically lasted thirty years. Lower rates last longer; the order of good and bad market years matters as well, which a constant return cannot show.
Can I model a pension that starts later?
Yes, in the full simulator: add a withdrawal period that starts in a later year, and a contribution period before it. Open your scenario there with the button in the result panel.