Retirement Withdrawal Calculator

Plan retirement withdrawals with the 4% rule. See how long your portfolio will last with projected returns and inflation.

By Konstantin Iakovlev · Updated September 2026 · Source: IRS · Methodology

$
Withdrawal Type
%
%
%

Annual Withdrawal

$40,000.00

Monthly Withdrawal

$3,333.33

Withdrawal Rate

4.00%

Inflation-Adjusted Return

3.88%

Balance After 30 Years

$2,427,262.47

Portfolio Depleted

Never (within horizon)

Projected Portfolio Balance

Year 1$1,030,000.00 (withdrawal: $40,000.00)
Year 5$1,159,274.07 (withdrawal: $45,020.35)
Year 10$1,343,916.38 (withdrawal: $52,190.93)
Year 15$1,557,967.42 (withdrawal: $60,503.59)
Year 20$1,806,111.23 (withdrawal: $70,140.24)
Year 25$2,093,777.93 (withdrawal: $81,311.76)
Year 30$2,427,262.47 (withdrawal: $94,262.62)

The 4% Rule

The widely cited 4% rule suggests withdrawing 4% of your portfolio in year one, then adjusting for inflation each year. This historically provided a high probability of lasting 30 years. Your withdrawal rate of 4.00% is at or below this guideline.

Use the Retirement Withdrawal Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Drawing income from a retirement portfolio without running out is the core challenge this tool addresses, built around the well-known 4% rule. The return and inflation rate you assume together decide how long your savings hold up. Enter your portfolio size, the withdrawal you have in mind, and your expected growth, and you can see how the balance plays out year by year.

The engine starts your first withdrawal at the rate or dollar amount you enter (4% of the starting portfolio by default) and raises that draw for inflation each year, over the time horizon you choose. Every period, the remaining balance grows by your projected investment return before the inflation-adjusted withdrawal comes out, following the compounding relationship New_Balance = (Old_Balance * (1 + Return_Rate)) - (Previous_Withdrawal * (1 + Inflation_Rate)).

The 4% rule is a planning benchmark rather than a promise, and a poorly timed market downturn early in retirement can undermine it. Taxes are the detail most people miss: withdrawals from tax-deferred accounts shrink your net income and speed up depletion. Building in a cushion for surprises such as major healthcare costs also helps, since those expenses can unravel even a carefully mapped withdrawal plan.

Example: A $1,000,000 Portfolio at 4%

  1. 1 Input: a $1,000,000 portfolio, a 4% first-year withdrawal ($40,000), a 7% expected return, 3% inflation and a 30-year horizon, the calculator's defaults.
  2. 2 Year 1: $1,000,000 × 1.07 − $40,000 = $1,030,000. Year 2's withdrawal rises to $40,000 × 1.03 = $41,200, and the balance becomes $1,030,000 × 1.07 − $41,200 = $1,060,900.
  3. 3 After 30 years the balance is about $2,427,262, the year-30 withdrawal is $94,263, and the depletion line reads 'Never (within horizon)'. Because the 7% return minus the 4% withdrawal equals the 3% inflation rate, the balance keeps exactly its starting purchasing power: $2,427,262 in 30 years buys what $1,000,000 buys today.
  4. 4 The Inflation-Adjusted Return line shows 1.07 ÷ 1.03 − 1 = 3.88%. The projection assumes the same return every year, so it is not a probability of success: a run of losses early in retirement can drain a plan that looks safe here; the sequence-of-returns calculator shows that effect.

Source: IRS · Last updated: September 2026

Frequently Asked Questions

What is the 4% rule for retirement withdrawals?
The 4% rule says you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year, with a high probability of not running out of money over 30 years.
How long will $1 million last in retirement?
At a 4% withdrawal rate, $1 million provides $40,000 in the first year, raised with inflation after that. The 4% rule was built so this lasted at least 30 years even through the worst historical markets; with steadier returns it lasts far longer. At this calculator's defaults (7% return, 3% inflation) the money never runs out and is still worth $1 million in today's dollars after 30 years. Your actual timeline depends on returns, especially in the first years, inflation, and spending.
Should I withdraw from my 401(k) or IRA first?
A common strategy is to withdraw from taxable accounts first, then tax-deferred (Traditional IRA/401k), then tax-free (Roth). However, strategic Roth conversions in low-income years before required minimum distributions begin (age 73, or 75 if you were born in 1960 or later) can reduce lifetime taxes.

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