Retirement Drawdown Calculator
See roughly how long a pot of savings could last if you withdraw a fixed amount each month while the remaining balance still earns a return.
How long will the money last?
Each month the pot earns its share of the annual return, then your withdrawal is taken out. The tool repeats this until the balance runs out. If your withdrawal is smaller than the monthly growth, the pot keeps rising and could, in principle, last indefinitely — the tool says so rather than inventing an end date.
Two forces pull against each other: growth adds to the pot, withdrawals subtract from it. Small changes matter a lot near the balance point — a slightly higher withdrawal or lower return can turn “lasts decades” into “runs out in years”, which is why testing several scenarios is useful.
This is a simplified projection at a constant return. Real markets are volatile, and a run of poor early returns while you are withdrawing (sequence-of-returns risk) can deplete a pot faster than a steady average suggests. It ignores inflation, taxes, and any state pension. Use it to explore, and plan retirement income with a professional.
Sources: Investor.gov — Save and invest (SEC), Investor.gov — Required Minimum Distribution Calculator (SEC)
Frequently asked questions
What is a “safe” withdrawal amount?
There is no universal answer — it depends on your return, time horizon, and tolerance for running short. Guidelines like a fixed annual withdrawal rate are starting points, not guarantees; this tool simply shows the arithmetic for the numbers you enter.
Why does it sometimes say “indefinitely”?
If the monthly withdrawal is less than or equal to the monthly growth, the pot never falls, so mathematically it doesn't deplete. Real returns fluctuate, so treat that as a best-case illustration, not a promise.
Does it account for inflation?
No. Withdrawals are held constant in nominal terms. In reality you may need to withdraw more each year to keep the same purchasing power, which shortens how long the pot lasts.
What is sequence-of-returns risk?
The danger that poor returns early in retirement — while you are drawing down — do more damage than the same poor returns later, because withdrawals lock in losses. A constant-return model can't show it, so build in a margin of safety.
