How to use the calculator
- Choose How long my money lasts or How much I can withdraw.
- Enter your savings today — the money you'll draw from in retirement or any period without a paycheck.
- Enter your monthly withdrawal (or how many years the money should last).
- Set a realistic yearly return after fees, and add your age if you'd like to see the age your money runs out.
- Keep Raise withdrawals with inflation ticked to keep your spending power steady — that's the realistic case.
The result shows how long your money lasts, the age it runs out, how much you withdraw in total and how much growth helps. The chart and year-by-year table show the balance falling over time.
How long $500,000 lasts at different withdrawals
5% yearly return; "with inflation" means the withdrawal rises 3% each year.
| Monthly withdrawal | With inflation | Without inflation |
|---|---|---|
| $1,500 | about 40 years | 100+ years |
| $2,000 | about 27 years | 100+ years |
| $2,500 | about 20 years | about 34 years |
| $3,000 | about 16 years | about 23 years |
| $3,500 | about 14 years | about 18 years |
| $4,000 | about 12 years | about 15 years |
Inflation makes a big difference: a $3,000 withdrawal that rises with prices runs out about seven years sooner than one that stays flat — but a flat withdrawal buys less every year.
How much you can withdraw for a set number of years
Starting with $500,000, 5% growth and 3% yearly increases:
| Money should last | Starting monthly withdrawal |
|---|---|
| 20 years | about $2,540 |
| 25 years | about $2,130 |
| 30 years | about $1,850 |
| 35 years | about $1,660 |
How the calculator works
Each month the calculator takes out your withdrawal first, then grows what's left at the monthly equivalent of your yearly return. If inflation is on, the withdrawal rises once a year by the inflation rate — like a yearly cost-of-living increase. It repeats until the balance reaches zero, for up to 100 years.
For "How much I can withdraw," it searches for the starting withdrawal that brings the balance to zero right at the end of the years you choose.
The maths is the same compound interest that grows savings — working in reverse. See the growth side with the compound interest calculator.
The 4% rule
A well-known rule of thumb, based on 1990s research into historical US stock and bond returns, says you can withdraw 4% of your savings in the first year and raise that amount with inflation each year, with a good chance of the money lasting about 30 years. With $500,000, that's $20,000 a year — about $1,667 a month. The calculator shows the 4% figure next to your result for comparison. It's a starting point, not a guarantee.
What can make money run out sooner
- Lower returns than you planned — test a cautious rate as well as your best guess.
- Bad markets early on. A fall in the first few years of withdrawals hurts more than the same fall later, because you're selling while prices are low. A steady average can't show this, so leave a margin.
- Big one-off costs — a new roof, a car, medical bills. Keep an emergency fund apart from your withdrawal plan.
- Taxes on traditional 401(k) and IRA withdrawals.
- Living longer than planned — plan to an age past what you expect.
Ways to make your money last longer
- Lower the withdrawal a little. In the table above, dropping from $3,000 to $2,500 a month adds about four years.
- Delay withdrawals while you're still earning — each year of growth without withdrawals helps twice.
- Cover essentials with steady income such as Social Security or a pension, and withdraw only for the rest.
- Keep a cash buffer for one or two years of withdrawals so you aren't forced to sell in a downturn.
- Track it every year and adjust: a plan you check is a plan you can fix.
Keep the whole picture in one place
Vault, the VaultlyApps personal finance dashboard, tracks your budget, savings goals and net worth with monthly snapshots, so you can see whether your savings are on course year after year. Try the free Vault demo in your browser.
Frequently asked questions
How long will $500,000 last in retirement?
How much can I withdraw so my money lasts 30 years?
What is the 4% rule?
What return should I use?
Should I include Social Security in the calculation?
Does the calculator include taxes?
Is this financial advice?
Key terms
Written by
Finance Specialist & Editor, VaultlyApps
Emma Whitfield writes and edits the VaultlyApps money guides and free calculators. Her focus is US household finance — budgeting on a real paycheck, paying down credit card and student debt, emergency funds and savings goals, renting — and the money side of freelancing and small-business income, from pricing and profit margins to self-employment tax. Every guide is researched against primary sources such as IRS publications and the CFPB, every number is checked in our tested calculators, and tax content is reviewed each year when new IRS figures come out. Emma is not a licensed financial adviser or tax preparer; her work is general education, not personal advice.
Researched against primary US sources, checked against independent calculators and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
