Estimate how long savings can fund payouts. Choose fixed, percent, or factor-based withdrawals with ease. View detailed schedules, then export CSV or PDF quickly.
| Scenario | Starting balance | Return | Method | Withdrawal | Year‑1 ending |
|---|---|---|---|---|---|
| Fixed payout | 250,000 | 6.5% | Fixed | 12,000 | 254,250 |
| Percent payout | 250,000 | 6.5% | Percent | 4% | 260,400 |
| Factor payout | 250,000 | 6.5% | Factor | ÷45 | 260,000 |
A stretch annuity approach spreads withdrawals across decades so the account can keep compounding while funding cash flow. This calculator models year-by-year balances, showing how withdrawals and returns interact. It is often used to explore retirement distribution pacing and portfolio longevity. Use it to compare pacing strategies before selecting a rule.
Enter opening balance, expected return, and compounding frequency. Choose a method, years, and withdrawal timing. Add inflation to grow fixed withdrawals, and a tax rate to estimate net cash received. Use conservative returns to stress-test plans and see failure points.
With monthly or daily compounding, the tool converts nominal return to an effective annual rate: reff = (1 + r/m)m − 1. A 6.5% nominal rate compounded monthly becomes slightly higher than annual, improving long-range projections. Because the schedule runs annually, reff keeps year steps consistent.
Fixed withdrawals are predictable: set an annual amount and optionally increase it by inflation. At 2.5% inflation, 12,000 becomes about 12,300 in year two and keeps rising. Higher inflation adjustments increase realism but can shorten longevity. Try toggling inflation to see how purchasing power changes over time.
Percentage withdrawals take a share of the balance, such as 4%. When the balance grows, withdrawals rise; in weak years, they fall automatically. This can reduce depletion risk, but income may vary year to year. Many planners test 3% to 5% as a quick benchmark.
Factor-based withdrawals divide the balance by a factor, such as 45. Larger factors mean smaller withdrawals and a longer stretch. If you enable factor decline by 1 per year, payouts generally increase as the modeled horizon shortens. Choose a factor that matches your expected remaining years and goals closely.
Start-of-year withdrawals reduce the amount that earns growth, while end-of-year withdrawals let funds compound first. Taxes are applied to withdrawals to estimate after-tax cash flow. Use the after-tax column for budgeting and scenario comparisons.
Each row shows beginning balance, growth, withdrawal, after-tax cash, and ending balance. The model stops early if the balance reaches near zero. Export CSV for spreadsheets or PDF for a shareable table of results.
It means spreading withdrawals across many years to reduce early drawdowns and give the remaining balance more time to grow. The goal is longer-lasting payouts, not a guaranteed outcome.
It depends on your goals. Fixed withdrawals are predictable, percentage withdrawals adapt to performance, and factor withdrawals scale with the remaining horizon. Try multiple scenarios and compare years modeled, total withdrawals, and ending balance.
If you withdraw at the start of the year, less money earns returns for that year. Withdrawing at the end lets the balance compound first, often producing a higher ending balance under the same other inputs.
Pick the frequency that matches your assumption for returns. Monthly is common for planning because it approximates periodic growth, while annual is simpler. The calculator converts your inputs into an effective annual rate for consistent yearly steps.
No, it is an estimate applied to withdrawals to show net cash flow. Real outcomes can differ due to brackets, credits, and account type. Use the rate that best matches your expected average tax on distributions.
The model allows negative annual returns. A negative return reduces the balance before withdrawals, which can accelerate depletion under fixed spending. Consider testing both optimistic and conservative return assumptions to understand risk.
No. It is a scenario tool for exploring how assumptions interact. Use it to prepare questions, compare strategies, and organize outputs, then confirm decisions with a qualified advisor for your jurisdiction.
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.