Calculator Inputs
Example Data Table
These examples are illustrative planning scenarios.
| Scenario | Current Age | Retirement Age | Current Balance | Monthly Contribution | Starting Payout | Projected Retirement Balance | Years Funded |
|---|---|---|---|---|---|---|---|
| Conservative | 45 | 65 | $180,000 | $900 | $2,800 | $708,420 | 25.00 |
| Balanced | 40 | 65 | $250,000 | $1,200 | $4,500 | $1,232,860 | 25.00 |
| Growth Focused | 35 | 67 | $120,000 | $1,800 | $5,600 | $1,781,540 | 28.00 |
Formula Used
1. Accumulation before retirement
Each month, the portfolio grows by the net monthly return. Then the contribution is added. Contribution growth can increase yearly deposits.
Ending Balance = Previous Balance × (1 + Net Monthly Return) + Monthly Contribution
2. Net return assumption
Net Return = Annual Return − Annual Fee
3. Retirement payout simulation
During retirement, each payout period applies net growth first. Then the gross withdrawal is subtracted. Taxes reduce spendable income, not the portfolio deduction.
New Balance = Previous Balance × (1 + Period Return) − Gross Payout
4. Inflation-adjusted payout
If enabled, the starting payout rises yearly by the inflation rate.
Future Payout = Starting Payout × (1 + Inflation Rate)Year
5. Sustainable payout
The tool uses binary search to find the largest starting payout that keeps the portfolio funded through the selected retirement horizon.
How to Use This Calculator
- Enter your current age, retirement age, and life expectancy.
- Provide your current balance and monthly contribution.
- Add contribution growth or a retirement lump sum if needed.
- Set expected returns, inflation, fees, and withdrawal taxes.
- Enter the desired starting payout and choose a frequency.
- Enable inflation-adjusted payouts if income should rise yearly.
- Click Calculate Payout to see summaries, tables, and the chart.
- Use the export buttons to save the yearly retirement schedule.
This calculator supports planning. It does not replace personalized financial advice.
Frequently Asked Questions
1. What does this calculator estimate?
It estimates your retirement balance, payout sustainability, annual retirement income, after-tax cash flow, and ending balance at your chosen life expectancy.
2. Does it include taxes?
Yes. The withdrawal tax rate reduces spendable income. The model still deducts the gross payout from the portfolio balance.
3. How are investment fees handled?
Annual fees are subtracted from both pre-retirement and post-retirement return assumptions. That creates a more conservative net growth estimate.
4. What happens when inflation-adjusted payouts are enabled?
Your starting payout increases every year by the inflation rate. This helps model rising living costs during retirement.
5. Why is the sustainable payout different from my requested payout?
The sustainable value is the highest modeled starting payout that lasts through the selected horizon. Higher requested payouts may deplete assets sooner.
6. Can I use negative or very low return assumptions?
Yes. Testing weak returns can show downside risk. Conservative scenarios often reveal whether your spending plan needs adjustment.
7. Should I enter nominal returns or real returns?
Use nominal returns when you also enter inflation separately. That keeps the model consistent when it increases future payouts.
8. Is this tool financial advice?
No. It is an educational planning tool. A licensed advisor can help tailor assumptions, taxes, and withdrawal strategy to your situation.