Model retirement income with flexible withdrawal options. See taxes, fees, and balances clearly. Make safer choices using realistic yearly projections.
| Year | Start Balance | Gross Withdrawal | Tax | Net Withdrawal | End Balance |
|---|---|---|---|---|---|
| 1 | 500,000 | 27,059 | 4,059 | 23,000 | 498,391 |
| 2 | 498,391 | 27,735 | 4,160 | 23,575 | 495,860 |
| 3 | 495,860 | 28,428 | 4,264 | 24,164 | 492,295 |
| 4 | 492,295 | 29,139 | 4,371 | 24,768 | 487,563 |
| 5 | 487,563 | 29,868 | 4,480 | 25,388 | 481,520 |
This calculator projects end-of-period balances and flags the first year your portfolio reaches zero. Durability depends on net spending need, return, fees, and inflation. For example, with a 500,000 starting balance, 6% return, 0.5% fees, 2.5% inflation, and 15% tax, a 35,000 annual budget minus 12,000 other income requires 23,000 net from investments each year. The preview table highlights the first 12 periods, while exports keep every row for the full horizon.
Use spending-based mode to hold the budget constant while testing strategies. Fixed, 4% baseline, percent-of-balance, and guardrails will still report gross, tax, and net. When taxes are applied, gross withdrawals are higher than net targets, so the tax rate materially changes sustainability. Switching from annual to monthly periods can reduce rounding effects and shows smoother balance changes across the year.
If “increase spending with inflation” is enabled, the annual spending target grows by (1+i)^k. This preserves purchasing power but increases withdrawal pressure over time. You can also inflate other income when benefits are indexed. With indexed income, the net amount needed from the portfolio may stay steadier, lowering depletion risk. If you disable inflation adjustments, results reflect nominal withdrawals that may buy less later. Realistic plans often combine indexed essentials with discretionary spending that grows slower than inflation.
Fees are applied after growth each period, then withdrawals are taken. A 0.5% annual fee on 500,000 is about 2,500 in the first year, and it compounds because it reduces the base that can grow. Taxes are estimated using a blended rate and are shown separately, so you can see how much of each withdrawal becomes spendable. Treat the tax rate as a planning placeholder, not a filing estimate.
After calculation, download CSV for the full period-by-period schedule and use it for charts, pivot tables, or scenario notes. The PDF provides a compact summary plus the first rows for quick sharing. Store multiple runs by saving exports with names like “base”, “higher inflation”, or “lower return”. Consistent exports make it easier to compare outcomes and document assumptions during annual reviews. every year.
No. It is a scenario model using fixed assumptions for returns, fees, inflation, and taxes. Markets vary and spending changes. Use it to compare strategies and understand sensitivity, not as a promise.
Gross is the amount taken from the portfolio. Net is what remains after estimated taxes. If you choose net targets, the calculator grosses up withdrawals so your spendable amount meets the target.
It withdraws only what your budget needs after other income, then applies tax estimates. This helps you focus on lifestyle affordability while still seeing how different strategies would behave if you disable spending-based mode.
Annual is simpler and faster for rough planning. Monthly provides smoother compounding and a more detailed schedule. Long-horizon results are usually similar, but monthly can show timing effects and rounding differences.
Each period applies investment growth, then subtracts a proportional fee from the post-growth balance. Withdrawals are taken after fees. This ordering approximates how many investment accounts assess ongoing expenses.
Yes, partially. Enable inflation adjustments to grow spending and, optionally, other income. For step changes like downsizing or healthcare spikes, run multiple scenarios with different targets and compare exported schedules.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.