How to use this calculator
Enter your total retirement savings and choose a withdrawal method (fixed dollar amount or percentage). Set your expected investment return during retirement and the inflation rate.
The calculator simulates year by year withdrawals adjusted for inflation and shows how long your money lasts. It also calculates the safe withdrawal rate that would sustain your desired retirement length.
Frequently asked questions
What is the 4% rule?
Withdraw 4% of your portfolio in year one, then adjust that amount for inflation each year. Based on the 1994 Trinity Study, this has historically sustained portfolios for 30 years with a balanced allocation.
How long will $1 million last in retirement?
At 4% ($40,000/year) with 5% returns and 3% inflation, about 30 years. Lower withdrawal rates extend the timeline significantly. At 3%, it can last 40+ years.
What return should I assume during retirement?
A conservative estimate is 4% to 6% for a balanced portfolio (60/40 stocks and bonds). More aggressive allocations may average higher but with more volatility risk.
Does this account for Social Security?
Not directly. Subtract your expected Social Security income from your annual spending needs, then use the remaining amount as your withdrawal target in this calculator.
What is sequence of returns risk?
If markets drop significantly in the first few years of retirement while you are withdrawing, your portfolio may never recover. Having a cash buffer of 2 to 3 years of expenses helps avoid selling investments at a loss.