Free retirement income calculator
See how much income your nest egg can safely pay. Enter your portfolio value and a withdrawal rate, and the calculator returns the sustainable annual and monthly income under the 4% rule — updated live, as you type.
On this page12 sections
| Year | Start balance | + Growth | − Withdrawal | End balance |
|---|---|---|---|---|
| 1 | $500,000 | $30,000 | $40,000 | $490,000 |
| 2 | $490,000 | $29,400 | $40,000 | $479,400 |
| 4 | $468,164 | $28,090 | $40,000 | $456,254 |
| 7 | $430,247 | $25,815 | $40,000 | $416,062 |
| 10 | $385,087 | $23,105 | $40,000 | $368,192 |
| 13 | $331,301 | $19,878 | $40,000 | $311,179 |
| 16 | $267,240 | $16,034 | $40,000 | $243,275 |
| 19 | $190,943 | $11,457 | $40,000 | $162,400 |
| 22 | $100,073 | $6,004 | $40,000 | $66,077 |
| 24 | $30,042 | $1,803 | $31,844 | $0 |
Estimates only, on a constant return and fixed withdrawal. Not financial advice.
Results are estimates. Consult a professional.
What the retirement income calculator tells you
The retirement income calculator answers the question that matters once you have actually saved: how much can I safely spend each year from my nest egg without running out? Enter your portfolio value and a withdrawal rate, and it returns the sustainable annual and monthly income that nest egg can support.
A lump sum is not income — it is potential income. The job of this tool is to turn a balance into a paycheck: a figure you can spend each year with reasonable confidence the money lasts a multi-decade retirement. The mechanism is the withdrawal rate, the share of the portfolio you draw in the first year.
How retirement income is calculated
The first-year income is deliberately simple — it is the portfolio multiplied by the withdrawal rate. The discipline is in choosing a rate the portfolio can sustain:
The 4% figure comes from the Trinity Study (Cooley, Hubbard & Walz, 1998) and earlier work by financial planner William Bengen (1994). Testing historical U.S. market returns, they found a portfolio of stocks and bonds could sustain inflation-adjusted withdrawals starting at about 4% across 30-year retirements without running dry in the great majority of historical periods.
Cooley, Hubbard & Walz (1998), "Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable" — the Trinity Study (Bengen 1994 originated the 4% rule).How to use the inputs
- Portfolio value. The total invested balance you will draw from at retirement. Use the projected nest egg, not today's balance, if you are still saving.
- Withdrawal rate. Start at 4% for a 30-year retirement. Use 3–3.5% for an early retirement that must last 40+ years, or up to 5% for a shorter horizon.
- Read both figures. The calculator shows the sustainable amount per year and per month, so you can match it against your expected spending.
A worked example: income from a $1 million portfolio
Priya retires with a $1,000,000 portfolio and wants to know what it can pay her each year using the classic 4% safe withdrawal rate. These are the calculator's defaults, so the result is reproducible.
Step 1 — Apply the withdrawal rate
Step 2 — Read the income
If $40,000 is not enough, Priya has two levers: a larger portfolio or a higher withdrawal rate — and the second carries more risk of depletion. Lowering her rate to 3.5% would cut the income to $35,000 a year but make the money far more likely to last 40 years.
Income at different portfolios and withdrawal rates
Two inputs drive the income: the portfolio size and the withdrawal rate. The table shows annual income across common combinations, so you can read off roughly what a given balance pays — and how much the rate matters.
| Portfolio | 3% (conservative) | 4% (Trinity) | 5% (aggressive) |
|---|---|---|---|
| $500,000 | $15,000 | $20,000 | $25,000 |
| $750,000 | $22,500 | $30,000 | $37,500 |
| $1,000,000 | $30,000 | $40,000 | $50,000 |
| $1,500,000 | $45,000 | $60,000 | $75,000 |
| $2,000,000 | $60,000 | $80,000 | $100,000 |
First-year annual income = portfolio × withdrawal rate. Figures computed by this calculator.
Choosing a withdrawal rate for your horizon
The 4% rule was built around a 30-year retirement. Your right rate depends on how long the money must last and how much certainty you want:
- Retiring at 65 for a ~30-year horizon: 4% is the standard starting point.
- Retiring early (40s–50s) for 40+ years: drop to 3–3.5%, because the portfolio must survive far more market cycles.
- Late retirement or a shorter horizon: 4.5–5% can be defensible when the money needs to last fewer years.
- Want flexibility? A variable strategy — spending less after bad market years — lets you start higher while protecting the portfolio.
The rate also assumes a diversified mix of stocks and bonds; an all-cash portfolio cannot sustain 4% because it does not grow. To work the problem from the other direction — how big a portfolio you need for a target income — use the retirement nest egg calculator, and check any gap with the retirement shortfall calculator.
Taxes, Social Security, and what this figure leaves out
The income shown is a gross withdrawal from the portfolio. Two things sit alongside it in a real retirement:
- Taxes. Withdrawals from a traditional 401(k) or IRA are taxed as ordinary income; Roth withdrawals are generally tax-free. The calculator shows the pre-tax draw, not your spendable take-home.
- Social Security and pensions. These provide income on top of portfolio withdrawals, so your portfolio may not need to cover all of your spending. Estimate benefits with the Social Security calculator.
- Required minimum distributions (RMDs). From age 73 (SECURE 2.0), the IRS forces minimum withdrawals from traditional accounts whether you need the income or not.
Accuracy, assumptions, and sources
This retirement income calculator multiplies your portfolio by the withdrawal rate to give first-year income, then divides by 12 for the monthly figure. The 4% default reflects the Trinity Study and Bengen's research on sustainable withdrawals over 30-year U.S. retirements. It does not model taxes, fees, Social Security, sequence-of-returns risk, or a specific portfolio mix, so the result is a planning estimate, not a guarantee or financial advice. Confirm RMD rules at IRS.gov and consult a qualified adviser.
Cooley, Hubbard & Walz — the Trinity Study on sustainable withdrawal rates (4% rule framing).IRS — Required minimum distributions FAQs.Frequently asked questions about the free retirement income calculator
About this retirement income calculator
This retirement income calculator runs entirely in your browser — your figures never leave your device. It multiplies your portfolio by the withdrawal rate to give first-year income and divides by 12 for the monthly figure, defaulting to the 4% safe withdrawal rate from the Trinity Study, all updating instantly as you type.
Calculators Cloud offers 400+ free tools with no sign-up. The full retirement calculators shelf includes Retirement nest egg, Retirement shortfall, and Annuity tools alongside this one. Or browse the full calculator directory.