How to Use
This calculator shows how long your savings will last depending on your total savings, the monthly withdrawals, and the investment return. It doesn't account for any taxes or fees.
How to Account For Inflation
Over time, things cost more due to inflation. The best way to account for inflation with this calculator is to subtract the expected inflation rate from the investment return. For example, if you expect a return of 7% but inflation at 4%, use an investment return of 3%.
How Long Will 1,005,000 Last in Retirement?
This depends on the withdrawal rate and the investment return (accounting for inflation). The calculator subtracts the monthly withdrawals every month while also growing the savings by the investment return. If the return is greater than the withdrawals, the savings will never run out.
See below how different investment returns can have a large impact on the overall returns.
| Savings |
Gross Return |
Inflation |
Net Return |
Monthly Return (net of inflation) |
| 1,005,000 |
10% |
3% |
7% |
$5,863 |
| 1,005,000 |
8% |
3% |
5% |
$4,188 |
| 1,005,000 |
7% |
4% |
3% |
$2,513 |
| 1,005,000 |
6% |
5% |
1% |
$838 |
Challenges With Calculating Retirement Returns
This calculator assumes fixed returns. Changes in returns or inflation could have a big impact on how savings will last. Therefore, this calculator should be used just as a very approximate estimation.
Many people have used the 4% rule. This means that you can safely retire while spending 4% of your savings every year. There is much debate in the personal finance world about this number. See the table below of annual spending allowed by percentage of savings spent.
| Savings |
Spending Percentage |
Annual Withdrawals Allowed |
| $1,005,000 |
2.00% |
$20,100 |
| $1,005,000 |
2.50% |
$25,125 |
| $1,005,000 |
3.00% |
$30,150 |
| $1,005,000 |
3.50% |
$35,175 |
| $1,005,000 |
4.00% |
$40,200 |
| $1,005,000 |
4.50% |
$45,225 |
| $1,005,000 |
5.00% |
$50,250 |