How much can I withdraw from my retirement savings each month?

It depends on the balance at retirement, the return during retirement, and how many years the money must last. This calculator shows a level monthly payment and a lower starting payment that then rises with inflation.

Why is the inflation-adjusted starting income lower than the level income?

Because every later payment is bigger. To fit a rising series of withdrawals inside the same balance, the first one has to start smaller than a flat payment would.

Which should I plan around — level or inflation-adjusted?

The inflation-adjusted figure better preserves your spending power over a long retirement. The level figure is simpler and fine for a shorter horizon or when other income (Social Security) already has cost-of-living increases.

Does this include Social Security or a pension?

No. Add those separately to your total retirement income, then treat the portfolio withdrawal here as the top-up you need beyond them.

What happens if markets drop early in retirement?

Withdrawing a fixed amount while the balance is down (sequence-of-returns risk) can permanently shrink the portfolio. A constant-return model can't show this, so stress-test with a lower return and consider trimming withdrawals in down years.

How does this relate to the 4% rule?

The 4% rule fixes the first withdrawal at 4% of the balance and adjusts for inflation, targeting 30 years. This calculator instead solves for the withdrawal that exactly exhausts the balance over your chosen retirement length.

Retirement Withdrawal Calculator

Turning Retirement Savings Into Income

A retirement balance only becomes useful when it can support spending. This calculator compounds current savings and planned contributions until retirement, then converts the projected balance into monthly withdrawals over the years between your retirement age and life expectancy.

The level-income result keeps the monthly payment constant. The inflation-adjusted result starts lower but increases each year at the assumed inflation rate, which is designed to preserve purchasing power more effectively. Neither result is guaranteed: actual market returns vary, and withdrawals during a market decline can permanently reduce the portfolio’s recovery potential.

Treat the output as a planning range. Test lower returns, longer life expectancy, and higher inflation. Also account separately for taxes, healthcare, fees, Social Security, pensions, and any income from property or part-time work.

How to Calculate Retirement Withdrawals

Step One: Grow the current balance

Compound current savings until the planned retirement age.

future value of current savings = currentSavings × (1 + annual return)^(retirementAge - currentAge)

$30,000 × 1.06^32 = $30,000 × 6.4534 = $193,602

Step Two: Add future contributions

Calculate the future value of monthly and annual contributions, then add both to the grown starting balance to get the balance at retirement.

future value of monthly deposits = monthlyContribution × (((1 + monthly return)^months - 1) / monthly return)

$500 × ((1.005^384 - 1) / 0.005) = $500 × 1,157.68 = $578,840

balance at retirement B = $193,602 + $578,840 = $772,442

Step Three: Calculate a level monthly payment

Use the ordinary annuity payment formula over the expected retirement months ().

where is the retirement balance, is the monthly rate of return (0.005), and is the number of retirement months.

Step Four: Calculate an inflation-adjusted payment

Use the growing-annuity formula when withdrawals are intended to rise with inflation, where is the monthly inflation rate (0.0025).

The inflation-adjusted first payment is lower than the level payment because every subsequent payment steps up with inflation.

Retirement Withdrawal Calculator worked example diagram — A visual read of the worked example above — the same numbers the calculator returns for its default inputs.

How return and retirement length change the income

Using the same 772,442-dollar balance at retirement, the level monthly income depends on the return during retirement and on how many months it has to last:

Return in retirement	18 years (216 months)	25 years (300 months)
4%	about 5,022 dollars	about 4,077 dollars
5%	about 5,431 dollars	about 4,516 dollars
6%	about 5,856 dollars	about 4,977 dollars
7%	about 6,299 dollars	about 5,459 dollars

Planning for a longer retirement lowers the monthly figure by roughly 15%. Because nobody knows their exact lifespan, many people plan to an age beyond their average life expectancy.

Level income or rising income?

The level payment stays at about 5,856 dollars a month for all 18 years, so its buying power shrinks. The inflation-adjusted payment starts lower, at about 4,641 dollars, and rises 3% a year. By year 10 it’s about 6,263 dollars a month, and in the final months it’s about 7,939 dollars. Both use up the same balance over the same period; they just spread the spending differently.

Common mistakes

Comparing the payment with today’s spending. The balance and payments are in future dollars. Divide by the growth in prices since today to compare.
Forgetting taxes. Withdrawals from many retirement accounts are taxable income, so the spendable amount is lower than the payment shown.
Planning to life expectancy exactly. About half of people live longer than average. Running the calculation to a later age gives a safety margin.
Ignoring other income. A pension or social security payment reduces what the savings must supply.

Sources and assumptions

This calculator assumes:

Returns and inflation are constant every year.
Income starts at the planned retirement age, shown both as a level monthly amount and as an amount that rises with inflation each year.
Taxes, fees and required minimum distributions are not modeled.

Sources:

Compound interest calculator, U.S. Securities and Exchange Commission (Investor.gov)
Consumer Price Index (inflation data), U.S. Bureau of Labor Statistics
Required minimum distributions FAQs, Internal Revenue Service

Figures last reviewed: 5 October 2026. Educational estimates, not professional advice.