# How Long Will My Money Last? Retirement Withdrawal Calculator

> See how many years your savings last at a given withdrawal, return and inflation rate, with Social Security, a yearly table and the most you can spend.

Source: https://www.themoneypocket.com/tools/how-long-will-my-money-last-calculator

**How long your money lasts depends on four numbers: what you have, what you take out, what the rest earns, and how fast your withdrawals rise with inflation. For example, $600,000 earning 5% a year, with $3,000 a month taken out and raised 3% a year, lasts about 20 years and 4 months. To make the same savings last 30 years, start at about $2,221 a month.**

Enter your savings, how much you need each month or year, and your expected return and inflation. Add Social Security or a pension if you have one, since it covers part of your spending and leaves less to draw from savings. The calculator shows how many years and months the money lasts, the age when it runs out, a year-by-year balance table, and the most you can spend if it has to last a set number of years.

> Interactive calculator: https://www.themoneypocket.com/tools/how-long-will-my-money-last-calculator
The calculator is for informational purposes only. It uses one fixed return for every year, so its results are estimates, not predictions: real markets go up and down, and the order of those years matters (see [sequence-of-returns risk](#sequence-risk) below).

## How long will $1 million last at 3%, 4%, 5% or 6% withdrawals?
The table shows how long $1,000,000 lasts by first-year withdrawal rate and average annual return. The withdrawal comes out at the start of each year and rises 3% a year for inflation. So 4% means $40,000 in year 1, $41,200 in year 2, and so on. The balance doesn't change the result, so the same years apply to $500,000 at 4% ($20,000 a year).

| First-year withdrawal | 4% return | 5% return | 6% return | 7% return | 8% return |
|---|---|---|---|---|---|
| 3% | 39 yrs 11 mo | 52 yrs 4 mo | 100+ yrs | Never runs out | Never runs out |
| 3.5% | 33 yrs 2 mo | 40 yrs 10 mo | 57 yrs 7 mo | Never runs out | Never runs out |
| 4% | 28 yrs 5 mo | 33 yrs 7 mo | 42 yrs 9 mo | 71 yrs 6 mo | Never runs out |
| 4.5% | 24 yrs 10 mo | 28 yrs 7 mo | 34 yrs 6 mo | 46 yrs 7 mo | Never runs out |
| 5% | 22 yrs 1 mo | 24 yrs 11 mo | 29 yrs 0 mo | 36 yrs 1 mo | 54 yrs 10 mo |
| 6% | 18 yrs 0 mo | 19 yrs 10 mo | 22 yrs 2 mo | 25 yrs 7 mo | 31 yrs 1 mo |
| 7% | 15 yrs 3 mo | 16 yrs 6 mo | 18 yrs 0 mo | 20 yrs 0 mo | 22 yrs 10 mo |

Three things stand out. First, the withdrawal rate matters more than the return. Going from 4% to 5% at a 5% return cuts almost 9 years. Going from a 5% to a 6% return adds about 9 years at a 4% withdrawal, but you don't control the return. Second, the gap between withdrawals widens fast. At 7%, even an 8% average return doesn't reach 23 years. Third, "100+ years" doesn't mean the returns cover everything forever. It means the money outlasts any realistic retirement under these assumptions. "Never runs out" (shown as "indefinitely" in the calculator) means the balance is still keeping pace with your withdrawals after 100 years, because the first-year rate is low enough for the return to fund every inflation raise.

## How the calculator works

The calculator replays your retirement one month at a time.

1. **Withdrawal.** At the start of each month (monthly mode) or each year (annual mode), it takes out what you need minus any other income you receive that period. If other income is larger than your spending, nothing comes out, and the extra isn't added to savings.
2. **Growth.** The remaining balance grows at your expected return. The annual return is converted to a monthly rate of (1 + return)^(1/12) − 1, so 12 months of growth add up to exactly your annual figure. A 5% return grows a balance by about 0.407% a month.
3. **Inflation.** If you check the inflation box, your spending steps up once a year: year 2 is 3% higher than year 1 at 3% inflation, year 3 is 3% higher again, and so on. Other income can rise the same way. Social Security does, through its yearly cost-of-living adjustment ([42 U.S.C. §415(i)](https://www.law.cornell.edu/uscode/text/42/415)). Many private pensions don't, so check your plan.
4. **Running out.** When the balance can no longer cover a full withdrawal, the calculator counts the share it can still cover and stops. If $5,000 is left and the year's withdrawal is $12,000, that last year counts as 5 months.
5. **The reverse answer.** For the "to last N years" figure, it searches for the highest first-period spending that keeps the balance above zero for exactly that many years, with the same return, inflation and other income.

Enter everything in today's dollars. The year-by-year table then shows future dollars, so the withdrawal column grows each year if your spending rises with inflation.

Monthly and annual mode give slightly different answers for the same yearly total. In annual mode the whole year's money comes out on day one and earns nothing. In monthly mode the money you haven't withdrawn yet keeps earning for a few more months. With $500,000 at 5% and a flat $30,000 a year, annual withdrawals last 32 years and 4 months. The same amount taken as $2,500 a month lasts 34 years and 2 months.

## Worked example: does inflation shorten how long my money lasts?
Take $500,000 earning 5% a year, with $30,000 taken out at the start of each year.

**Flat withdrawals (no inflation raise):**

- Year 1: $500,000 − $30,000 = $470,000, then × 1.05 = $493,500.
- Year 2: $493,500 − $30,000 = $463,500, then × 1.05 = $486,675.
- The balance shrinks a little faster each year, because each year there's less left to earn on.

There's a shortcut for a flat withdrawal taken at the start of each year: years = ln[1 ÷ (1 − r × B ÷ (W × (1 + r)))] ÷ ln(1 + r). Here that's ln[1 ÷ (1 − 25,000 ÷ 31,500)] ÷ ln(1.05) = 1.578 ÷ 0.0488 = 32.35 years. So the money lasts 32 years and about 4 months, the same as the calculator.

**Withdrawals rising 3% a year:**

- Year 1: same as above, ending at $493,500.
- Year 2: the withdrawal is $30,000 × 1.03 = $30,900, so ($493,500 − $30,900) × 1.05 = $485,730.
- Year 3: $31,827 comes out, and the balance ends at $476,598.

These withdrawals keep their buying power, but the money lasts only 19 years and 10 months. That's 12½ years less than the flat version. A flat withdrawal looks like it lasts longer, but at 3% inflation it buys about 45% less after 20 years than it did in year 1 (1 ÷ 1.03^20 = 0.55). Most people's spending doesn't fall that fast, so the inflation-adjusted figure is usually the more honest one.

## How much can I withdraw so my money lasts 30 years?
This is the same question turned around: you fix the number of years and solve for the spending. With a withdrawal at the start of each year that grows at inflation rate g, and a return r, the first-year amount that uses up a balance B in exactly n years is:

W = B × (1 − q) ÷ (1 − qⁿ), where q = (1 + g) ÷ (1 + r)

For $600,000 over 30 years at a 5% return and 3% inflation:

- q = 1.03 ÷ 1.05 = 0.98095
- 1 − q = 0.019048, and q³⁰ = 0.56161, so 1 − q³⁰ = 0.43839
- W = $600,000 × 0.019048 ÷ 0.43839 = **$26,069** in the first year, then 3% more each year

That's a first-year withdrawal rate of 4.34%. Taken monthly, the calculator gives $2,221 a month in the first year, or about $26,656 a year. It's slightly more because the money waiting to be withdrawn earns for a few months. Change the "Years it needs to last" field to 25, 35 or 40 to see how much each extra decade costs. And if your age is in the form, choose a horizon that runs past your life expectancy, not up to it.

## What is the 4% rule, and does it still work?

The 4% rule comes from William P. Bengen's article "[Determining Withdrawal Rates Using Historical Data](https://www.financialplanningassociation.org/sites/default/files/2021-04/MAR04%20Determining%20Withdrawal%20Rates%20Using%20Historical%20Data.pdf)," published in the *Journal of Financial Planning* in October 1994. Bengen didn't use an average return. He replayed actual U.S. stock, Treasury and inflation data for retirements starting each year from 1926, with a portfolio of 50% common stocks and 50% intermediate-term Treasury notes. Each simulated retiree withdrew a percentage of the starting balance in year 1, then raised that dollar amount with inflation every year.

His finding: a 4% first-year withdrawal "should be safe" for a 30-year retirement. In no historical case did it exhaust the portfolio in under 33 years, and most portfolios lasted 50 years or more. A 3% rate never ran out within 50 years, and a 4.25% rate could run out in as little as 28 years. He also found that holding too few stocks shortened the money's life, and he suggested a stock allocation between 50% and 75%.

What the rule is and isn't:

- **It is a first-year rate.** After year 1 you raise the dollar amount with inflation and ignore the balance. That's exactly what this calculator models when you check the inflation box.
- **It is a worst case from past U.S. markets, not a forecast.** It covers what actually happened from 1926 onward. Future returns could be lower.
- **It assumes a balanced portfolio and ignores fees and taxes.** A 1% annual fee equals a quarter of a 4% withdrawal.
- **It targets about 30 years.** Bengen advised no more than 4% in the early years, especially for people retiring at 60 or younger. Only about 3% lasted 50 years in every case he tested.

For comparison, the 4% row of the table above lasts 33 years and 7 months at a fixed 5% return with 3% inflation. The difference is that Bengen's worst cases came from real sequences of crashes and inflation, which a fixed return can't show (see the next section).

## Sequence-of-returns risk: why an average return can mislead
The calculator assumes the same return every year. Real portfolios don't work that way, and when you are withdrawing money, the order of the returns changes the result even if the average stays the same.

Take $500,000 with $30,000 withdrawn at the start of each year, and two years with returns of −15% and +15%:

| | Bad year first (−15%, then +15%) | Good year first (+15%, then −15%) |
|---|---|---|
| Start | $500,000 | $500,000 |
| After year 1 | ($500,000 − $30,000) × 0.85 = $399,500 | ($500,000 − $30,000) × 1.15 = $540,500 |
| After year 2 | ($399,500 − $30,000) × 1.15 = $424,925 | ($540,500 − $30,000) × 0.85 = $433,925 |

The returns are the same, just in a different order, yet you end up $9,000 apart after two years. The reason is that the withdrawal in a bad year sells more of the portfolio at low prices, and those shares aren't there for the recovery. Over 30 years, a bear market in the first five years of retirement can cut years off how long the money lasts. The same bear market in year 25 does much less damage.

How to use the calculator with this in mind:

- **Test a lower return.** Rerun it with 1 to 2 points less than your expected return. If the money still lasts long enough, your plan has some cushion for bad early years.
- **Keep a cash buffer.** One or two years of withdrawals in cash or short-term bonds lets you avoid selling stocks right after a crash.
- **Stay flexible.** Skipping the inflation raise in a year after a big loss, or trimming spending a little, does a lot to protect the money in bad sequences.

## How Social Security changes how long your money lasts

Other income covers part of your spending, so only the gap comes out of savings. That's often the biggest lever you have. Suppose you are 64 with $800,000, spend $6,000 a month in today's dollars rising 3% a year, and earn 5%:

- **No other income:** the full $72,000 a year comes from savings, a 9% first-year rate. The money lasts 12 years and 8 months, until about age 76.
- **Social Security of $2,500 a month from 67**, rising with inflation: you draw the full amount for three years, then only $3,500 a month (in today's dollars). The money lasts 20 years and 10 months, until about age 84.
- **The same benefit claimed at 70 instead:** delayed retirement credits add 2/3 of 1% for each month you wait past full retirement age, or 8% a year, until 70 ([SSA: delayed retirement credits](https://www.ssa.gov/benefits/retirement/planner/delayret.html)). For a full retirement age of 67, that's 24% more, so $2,500 becomes $3,100. Savings now cover six years in full instead of three. The money lasts 20 years and 11 months, about the same as claiming at 67. But from age 84 on, you live on $3,100 a month in today's dollars instead of $2,500.

The lesson: delaying Social Security spends savings early to buy a bigger check that lasts for life. That's insurance against running out, and this calculator can't show its full value because it stops when savings run out. To estimate your own benefit at 62, 67 and 70, use the [Social Security calculator](https://www.themoneypocket.comtools/social-security-calculator), and read [when to claim Social Security: 62 vs 67 vs 70](https://www.themoneypocket.comarticles/when-to-claim-social-security-62-vs-67-vs-70) for the break-even ages and survivor benefits.

In the calculator, enter the benefit in today's dollars, as your SSA statement shows it, and check "rises with inflation." For a pension without a cost-of-living raise, leave that box unchecked. The gap it leaves will then grow every year as your spending rises.

## Do required minimum distributions make my money run out faster?
No. Required minimum distributions (RMDs) force money out of a traditional IRA or 401(k), but you don't have to spend it. You can reinvest what you don't need in a taxable brokerage account, and it still counts as savings in this calculator. What an RMD changes is your tax bill, not how long your money lasts.

RMDs start at 73 if you were born from 1951 through 1959, and at 75 if you were born in 1960 or later ([26 U.S.C. §401(a)(9)(C)](https://www.law.cornell.edu/uscode/text/26/401)). Each year's RMD is the prior December 31 balance divided by a factor from the IRS Uniform Lifetime Table ([26 CFR 1.401(a)(9)-9](https://www.ecfr.gov/current/title-26/section-1.401(a)(9)-9)). As a share of the balance:

| Age | Divisor | RMD as % of balance |
|---|---|---|
| 73 | 26.5 | 3.77% |
| 75 | 24.6 | 4.07% |
| 80 | 20.2 | 4.95% |
| 85 | 16.0 | 6.25% |
| 90 | 12.2 | 8.20% |

If you already withdraw 4% to 5% a year, your RMD in your 70s is usually smaller, so it changes nothing. In your mid-80s it overtakes most spending plans. Project yours with the [RMD calculator](https://www.themoneypocket.comtools/rmd-calculator).

## Are retirement withdrawals taxed?
Everything in this calculator is before tax. How much tax you pay depends on which account the money comes from:

- **Traditional IRA and 401(k):** every dollar you withdraw is taxable income, unless you made nondeductible contributions ([26 U.S.C. §408(d)(1)](https://www.law.cornell.edu/uscode/text/26/408)). Before 59½ there is usually an extra 10% tax. The [401(k) withdrawal calculator](https://www.themoneypocket.comtools/401k-withdrawal-calculator) covers the exceptions.
- **Roth IRA:** qualified withdrawals are tax-free ([26 U.S.C. §408A(d)(1)](https://www.law.cornell.edu/uscode/text/26/408A)), so the amount you take out is the amount you spend.
- **Taxable brokerage account:** only the gain on what you sell is taxed, often at long-term capital gains rates.
- **Social Security:** up to 85% of benefits can be taxable, depending on your other income ([26 U.S.C. §86](https://www.law.cornell.edu/uscode/text/26/86)). The [taxable Social Security calculator](https://www.themoneypocket.comtools/taxable-social-security-calculator) works out your share.

Here is a worked example of the tax, using the 2026 figures from [Rev. Proc. 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf). A single filer aged 66, with no other income, withdraws $40,000 from a traditional IRA:

- Deductions: $16,100 standard deduction + $2,050 additional deduction for 65 and older + $6,000 senior deduction ([Schedule 1-A](https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf), tax years 2025 through 2028) = $24,150.
- Taxable income: $40,000 − $24,150 = $15,850.
- Tax: $12,400 × 10% + $3,450 × 12% = $1,240 + $414 = **$1,654** in federal tax.

To spend a full $40,000, you need to withdraw more, and each extra dollar is taxed at 12%. So you need $1,654 ÷ 0.88 ≈ $1,880 on top, or $41,880 in all. Check: $41,880 − $24,150 = $17,730 of taxable income, and $1,240 + $5,330 × 12% = $1,880 of tax, which leaves $40,000. So in the calculator, enter $41,880 a year (about $3,490 a month), not $40,000. State tax, if your state has one, comes on top of that. The [IRA withdrawal tax calculator](https://www.themoneypocket.comtools/ira-withdrawal-tax-calculator) works out the federal and state tax for any amount and age. In years when your income is low, the [Roth conversion calculator](https://www.themoneypocket.comtools/roth-conversion-calculator) shows what it would cost to move money to a Roth now so that later withdrawals come out tax-free.

## How to make your money last longer

These are the levers in order of how much they usually change the result. You can test each one in the calculator:

1. **Lower the first-year withdrawal.** On the $1 million table, going from 5% to 4% at a 5% return adds 8 years and 8 months. Nothing else you control moves the result as much.
2. **Delay the big income streams.** A larger Social Security check from 70, or a pension that starts later, shrinks the gap savings must fill for the rest of your life.
3. **Work or earn a little longer.** One more year of earnings is a year with no withdrawal, plus another year of growth.
4. **Spend flexibly.** Skip the inflation raise after a losing year, and the bad early sequences that sink fixed plans do much less harm.
5. **Cut costs you don't see.** Fund expense ratios and advisory fees come straight out of the return. Enter your return after fees.
6. **Choose the account order with tax in mind.** Spending from taxable, traditional and Roth accounts in the right order can lower your lifetime tax, which leaves more to spend.

For a full plan that puts these together year by year, with RMDs, Social Security, Roth conversions and the tax on each, the [Retirement Withdrawal Planner](https://www.themoneypocket.comproducts/retirement-withdrawal-planner) spreadsheet goes into more detail than this calculator can.

## What this calculator doesn't model

- **Variable returns.** One fixed return every year means no crashes and no booms. Use a lower return to stress-test your plan.
- **Taxes and penalties.** Enter before-tax amounts, and add the tax yourself as shown above.
- **Fees and annuitization.** Enter a return that is already net of fees. Annuities you buy with part of your savings should go in as other income, with that amount removed from your savings. The [annuity payout calculator](https://www.themoneypocket.comtools/annuity-payout-calculator) shows what a lump sum buys as a fixed-period payout and how those payments are taxed.
- **Lumpy expenses.** A new roof or long-term care isn't a steady monthly cost. Subtract a planned lump sum from your starting balance, or run a second scenario.
- **Spending that changes with age.** Many retirees spend less in their late 70s and 80s than in their 60s, outside of health care. The calculator keeps your spending in today's dollars fixed for the whole retirement, which is conservative if your spending will fall.