A retirement withdrawal calculator answers the decumulation question: now that you’ve saved, how much can you actually spend each year without running out? It models drawing your balance down across retirement, alongside Social Security, and shows whether your planned spending is sustainable and how long it lasts.
It’s pre-filled for a retiree at 65 with $1,000,000 spending $50,000 a year — adjust the balance, spending, and other income to fit your plan.
Fixed vs flexible withdrawals
The classic approach fixes a first-year withdrawal — say 4% — and raises it with inflation regardless of markets. It’s simple and predictable, but it ignores what your portfolio is actually doing, which can be risky in a long downturn.
Flexible strategies adjust spending to conditions: taking a little less after bad years and a little more after good ones. They’re less predictable year to year but stretch a portfolio much further, because you stop drawing heavily from a shrinking balance.
Guardrails: a middle path
Guardrail strategies set an upper and lower bound around your withdrawal rate. If a market drop pushes your rate above the upper guardrail, you trim spending; if strong returns drop it below the lower one, you give yourself a raise. It keeps spending mostly steady while protecting against running out.
You don’t need a complicated system to benefit from the idea — simply being willing to ease off in bad years is most of the value. The calculator’s what-if chips let you see how spending less changes your runway.
Putting it together
Start from a sustainable rate for your horizon, layer in Social Security to cover the baseline, and keep a cash buffer so you’re never forced to sell investments at the worst time. Then check the projected depletion age above and adjust until your money comfortably outlasts your plan.
Remember withdrawals from pre-tax accounts are taxable, so plan in after-tax spending terms, and revisit the numbers every few years as markets and your needs change.
Frequently asked questions
How much can I withdraw from my retirement savings?
A common sustainable starting point is about 4% of your balance in the first year, adjusted for inflation — $40,000 on $1 million — on top of Social Security. The calculator shows how long that lasts and lets you test other rates.
What is a safe withdrawal rate?
Roughly 4% for a 30-year retirement is the common benchmark, with 3.0–3.5% favored for longer horizons or cautious plans. The right rate balances the income you want against the risk of running out.
Should my withdrawals be fixed or flexible?
Fixed withdrawals are predictable but ignore markets; flexible or guardrail strategies adjust spending to conditions and stretch a portfolio further. Even a willingness to spend a little less in bad years makes a big difference.
Do I pay tax on retirement withdrawals?
Withdrawals from traditional 401(k)s and IRAs are taxed as ordinary income, so budget in after-tax terms. Roth withdrawals are generally tax-free, and a mix of account types gives you flexibility to manage taxes.
Worked examples
Each scenario below is computed by the same retirement engine that powers the interactive calculator above — no hand-typed numbers.
Sustainable withdrawal from $900k
Retiree at 66 with $900,000, $2,200/month SS, targeting $70,000/year total spending — checking if the portfolio can sustain this through age 90.
Projected nest egg
$900,000
Required (today's $)
$846,234
Funded ratio
106%
Monthly income
$5,200/mo
$900k must fund $43,600/year ($70k − $26.4k SS). That's a 4.8% withdrawal rate — slightly above the traditional 4% guideline, signaling some longevity risk.
Conservative retiree — high SS coverage
Retiree at 70 with $600,000, $3,200/month SS (delayed), spending $80,000/year. High SS coverage dramatically reduces portfolio strain.
Projected nest egg
$600,000
Required (today's $)
$697,342
Funded ratio
86%
Monthly income
$5,200/mo
$3,200/month SS covers $38,400/year, leaving only $41,600/year for the portfolio to cover. $600k at 6.9% effective draw is aggressive, but the high SS floor limits catastrophic risk.
More retirement questions
How much can I withdraw from retirement accounts without penalty?
After age 59½, you can withdraw any amount from traditional 401k and IRA accounts without the 10% early withdrawal penalty. You will still owe ordinary income tax on every dollar withdrawn from pre-tax accounts. Roth IRA contributions (not earnings) can be withdrawn at any age tax-free; Roth earnings are tax-free after 59½ if the account is at least 5 years old.
What is the best withdrawal strategy in retirement?
Most planners recommend withdrawing in this order: (1) required minimum distributions first, (2) taxable brokerage accounts, (3) traditional 401k/IRA (ordinary income), (4) Roth accounts last (tax-free growth). This sequencing minimizes lifetime taxes and lets tax-advantaged accounts compound longer. The exact sequence depends on your tax bracket, estate goals, and spending needs.
What this calculator does — and does not — compute
Retirement projections involve inputs that come from government agencies, employers, and tax rules this tool cannot access. Here is exactly what you are providing versus what this calculator handles on its own.
- 1.Social Security is not calculated here. You enter your own monthly estimate in the “Other monthly income” field. This tool does not access your earnings record or apply Social Security benefit formulas. To get your actual personalized estimate, create a free account at ssa.gov/myaccount.
- 2.Required Minimum Distributions (RMDs) are not modeled. The drawdown projection shows balance depletion under your stated withdrawal rate, but it does not enforce IRS RMD schedules (which begin at age 73 for most accounts) or calculate RMD amounts from IRS life-expectancy tables. If RMDs apply to you, actual withdrawals may differ from the projection shown.
- 3.Pension income is an input you provide, not a computed output. If you have a defined-benefit pension, enter your expected monthly payment in “Other monthly income.” This tool does not compute pension formulas (FERS, CalPERS, military, state, or private plan formulas) and does not connect to any employer or government pension system.
- 4.Withdrawal tax treatment is simplified and illustrative. The projection shows gross withdrawals from your portfolio. It does not calculate federal or state income taxes on traditional 401k or IRA distributions, does not model Roth tax treatment, and does not account for RMD-driven bracket changes. Actual after-tax income will differ. For tax planning specific to your situation, consult a qualified tax professional.
- 5.Any depletion result is a projection, not a guarantee. “How long your money lasts” and similar outputs are calculated under your stated return rate, inflation rate, and spending assumptions. Actual outcomes depend on market performance, sequence of returns, unexpected expenses, and life events that cannot be modeled in advance. A projection is a planning tool, not a promise.
This calculator is for educational and planning purposes only. It does not constitute financial, tax, or investment advice.