Free how long will money last calculator
Find out how many years a nest egg lasts with annual withdrawals — enter balance, annual return, and yearly withdrawal amount, updated live, as you type.
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Based on fixed rate assumption. Actual returns vary. Excludes taxes and inflation. Consult a financial advisor for retirement planning.
Results are estimates. Consult a professional.
How the how-long-will-money-last calculator works
This calculator answers a foundational retirement question: if you have a fixed pot of money and withdraw a set amount every year, how long before it runs out? The answer depends on two competing forces — the return your savings continue to earn and the pace at which you draw them down.
When annual withdrawals exceed the interest earned that year, your balance shrinks. The formula calculates exactly how many years it takes for the balance to reach zero. If your withdrawal is less than the interest earned, the principal is never depleted — the money lasts indefinitely. This is the mathematics behind the famous '4% rule.'
Worked example: $400k, 5% return, $25,000/yr
You retire with $400,000 invested at a steady 5% annual return. You plan to withdraw $25,000 per year for living expenses. How many years will the money last?
Years money lasts by balance, return, and annual withdrawal
The table shows how long a portfolio lasts at three return rates and four withdrawal levels. 'Forever' means the withdrawal is at or below the annual interest earned — principal is preserved.
| Portfolio | Return | $15k/yr | $20k/yr | $30k/yr | $40k/yr |
|---|---|---|---|---|---|
| $200,000 | 4% | 21 yrs | 16 yrs | 10 yrs | 7 yrs |
| $400,000 | 4% | Forever | Forever | 24 yrs | 16 yrs |
| $400,000 | 5% | Forever | Forever | 28 yrs | 18 yrs |
| $600,000 | 5% | Forever | Forever | Forever | 34 yrs |
| $1,000,000 | 6% | Forever | Forever | Forever | Forever |
Source: calculated using Bengen (1994) and Trinity Study methodology; assumes constant annual return and end-of-year withdrawals.
Tips for making your money last longer
Small adjustments to your withdrawal strategy can add years — sometimes decades — to how long your money lasts. These five approaches are well-supported by retirement research.
- Start with the 4% rule as a floor — Bengen's research showed that withdrawing 4% of the initial balance (adjusted for inflation annually) has historically survived every 30-year U.S. market cycle since 1926. It is a proven starting point, not a ceiling.
- Build in a flexible spending buffer — commit to reducing withdrawals by 10–15% if your portfolio drops more than 15% in a year. This 'guardrails' approach prevents panic selling and can extend portfolio life by 5+ years.
- Layer in guaranteed income — Social Security, pensions, or a small annuity create a floor of income that reduces your reliance on the portfolio. Less portfolio stress in early retirement means more time for the balance to compound.
- Consider a bucket strategy — keep 1–2 years of expenses in cash, 3–7 years in bonds, and the rest in equities. You draw from cash first, refilling from bonds when stocks are up, avoiding forced selling in downturns.
- Re-run this calculator at every major life change — medical costs, a move, a part-time job, or a new APY all shift your outcome. Annual recalculation keeps your plan current.
Accuracy and limitations
This calculator assumes a constant, fixed annual rate of return. Real investment portfolios are volatile — a sequence of negative returns early in retirement can exhaust a portfolio far sooner than this formula predicts, even if the long-run average return is identical. Inflation also erodes the real value of a fixed nominal withdrawal over time, meaning $25,000 in year 30 buys significantly less than it does today. For comprehensive retirement planning, use this calculator alongside a Monte Carlo simulation and an inflation-adjusted analysis.
This calculator is provided for educational and planning purposes only. It does not constitute financial or retirement advice. Consult a licensed financial planner before making retirement distribution decisions.
Retirement drawdown terms defined
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