Plan your investing and retirement withdrawals
Use this calculator to estimate how large your portfolio could grow and how much you may be able to withdraw each year.
Assumptions: monthly compounding, contributions and withdrawals at the end of each month, and constant rates.
What this investment and withdrawal calculator does
This tool combines two important planning steps in one place:
- Accumulation: How your account grows while you are contributing.
- Distribution: How much you can withdraw each year once contributions stop.
Instead of running separate spreadsheets, you can estimate both phases quickly and test different assumptions in seconds.
How the math works
1) Growth phase
The calculator adds your starting balance and monthly contributions, then compounds growth each month based on your annual return assumption. This shows your projected balance at the start of retirement.
2) Withdrawal phase
Using your retirement starting balance, it estimates a level monthly withdrawal that could last your selected number of years. It also converts that value into annual spending.
3) Inflation adjustment
Inflation reduces purchasing power over time. The calculator shows an inflation-adjusted withdrawal estimate in today’s dollars so you can better compare future spending to current expenses.
How to use each input
- Initial investment: What you have already saved.
- Monthly contribution: Ongoing amount you invest each month.
- Years to invest: Time until withdrawals begin.
- Annual return during investing: Expected average annual portfolio return before retirement.
- Years of withdrawals: How long your money needs to last after retirement starts.
- Annual return during withdrawals: More conservative post-retirement expected return.
- Desired annual withdrawal: Optional. Enter a target to test whether it appears sustainable.
- Inflation rate: Annual inflation assumption used for “today’s dollars” adjustment.
Example planning workflow
Suppose you have $10,000 invested, contribute $500 monthly, and expect 7% annual growth for 25 years. Then you plan for a 30-year retirement with a 5% return. The calculator can estimate:
- Your projected retirement starting balance
- A level annual withdrawal that may last 30 years
- What that withdrawal means in today’s purchasing power
- Whether a custom withdrawal target may run out early
Common mistakes to avoid
Using overly optimistic returns
Small changes in return assumptions can produce very different results. Consider running conservative, moderate, and optimistic scenarios.
Ignoring inflation
A future withdrawal that looks large in nominal dollars may feel much smaller in real life. Always review inflation-adjusted numbers.
Forgetting lifestyle changes
Retirement spending is rarely flat over decades. Healthcare, taxes, and housing shifts can materially affect cash flow needs.
Actionable tips for better outcomes
- Increase savings rate before chasing higher returns.
- Automate monthly contributions and annual increases.
- Stress-test your plan with lower returns and longer retirement periods.
- Re-run your plan yearly and after major life changes.
Final note
This calculator is an educational planning tool, not personalized financial advice. Use it to build intuition, compare scenarios, and prepare questions for a licensed financial professional.