Estimate the life of a savings balance under regular withdrawals, or calculate the initial payment that a chosen balance can fund for a fixed term. Include annual spending increases and compare payment timing.
Estimate how long savings last
Enter the current balance, regular withdrawal and withdrawal frequency. The calculator applies growth and withdrawals period by period until the balance runs out or the projection reaches 100 years. It distinguishes full withdrawals from a partial last payment. A zero starting balance funds no withdrawals.
Beginning-of-period withdrawals happen immediately, with the first payment at time zero. Ending withdrawals occur after one period of growth. The depletion time is the timing of the final withdrawal event; it is not a promise that all expenses throughout the next period are funded.
Solve a withdrawal for a chosen duration
The Withdrawal mode finds the initial regular amount that uses the available savings over your selected number of complete payment periods. Annual increases are applied to that amount after each full year. For example, a 3% increase turns a first-year monthly withdrawal of 1,000 into 1,030 in year two.
The result is a mathematical payment under constant assumptions. It is not a safe-withdrawal recommendation. Changing market returns, taxes, fees and unexpected expenses can make actual savings last a different length of time. Rounding the displayed payment can also leave a small residual or shortfall.
Nominal interest versus APY
An effective annual return or APY already includes compounding. For nominal rates, choose the compounding frequency separately. The model converts either convention to a rate matching the withdrawal cadence. Weekly and biweekly periods use 52 and 26 payments per year rather than particular calendar dates.
Read the final payment carefully
When the remaining balance is too small for the requested payment, the calculator pays the available amount and reports the unpaid portion. It does not borrow to fund spending. If the account remains positive after 100 years, the result says that it did not deplete within the model limit; it does not claim perpetual real-world income.
The schedule and balance chart let you inspect the path. Compare an increased withdrawal, a lower return, or an annual spending increase using the baseline feature. Negative annual returns can be entered to explore a constant-loss scenario; this still does not model the order of fluctuating market returns.
Formula
Ending-payment balance = previous balance × (1 + periodic return) − withdrawal
Withdrawal in year y = initial withdrawal × (1 + annual increase)^(y − 1)
Maximum initial withdrawal = savings / present value of one unit of scheduled withdrawals
Examples
Savings with no growth
A balance of 12,000 and withdrawals of 1,000 at each month end lasts for 12 full withdrawals at 0% return. Beginning-of-month payments instead occur at months 0 through 11.
Partial final payment
With 10,500 and monthly withdrawals of 1,000 at 0%, ten payments are funded in full. The eleventh pays 500 and leaves a 500 shortfall.
Fixed ten-year income
At 0% return with no annual spending increase, 120,000 funds 120 monthly withdrawals of 1,000 over ten years.