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Withdrawal plan calculator

This withdrawal plan calculator answers two questions about the drawdown phase: how long a starting capital lasts at a fixed monthly withdrawal, and — the other way round — how much you could withdraw for a number of years you choose. You see the capital trajectory year by year and a clear note on whether the capital is drawn down or preserved. You enter every assumption yourself; the calculation runs entirely in your browser.

All defaults are example assumptions. The calculator assumes a constant return, includes no taxes and no costs, and makes no claim about a "safe" withdrawal rate. The calculation runs in your browser; nothing is stored.

What would you like to work out?

What your result means

If your monthly withdrawal is above the capital-preserving withdrawal (K0 · r), the capital is drawn down over time and the calculator shows after how many months it runs out. If it is at or below that level, the capital is preserved in the model. Both statements only hold for the constant-return assumption; real return paths fluctuate.

How this calculator works

The calculator works monthly. The monthly rate is r = annual return assumption / 100 / 12 (the annual figure is divided by 12 in nominal terms; this is not an effective monthly rate). The return is constant within the scenario. Each month the interest is credited first (capital × (1 + r)) and the scheduled withdrawal is subtracted afterwards (end of month).

Duration mode: with a fixed withdrawal the calculator iterates month by month, up to 1,200 months (100 years). As soon as the capital after crediting interest is smaller than the scheduled withdrawal, the plan ends; it reports the number of months in which a full withdrawal was paid and the remainder that can no longer cover a full withdrawal. Optionally the withdrawal steps up once per completed year by a percentage (months 1 to 12 stay at the base amount). If every withdrawal remains payable across the full 1,200 months, the capital counts as preserved.

Amount mode: from the starting capital, the monthly rate and the chosen number of months (years × 12) the constant withdrawal follows the annuity formula E = K0 · r / (1 − (1 + r)^(−n)); when r = 0 it is simply K0 / n. The calculator also shows the capital-preserving withdrawal K0 · r — the amount at which only the interest is taken and the capital is left untouched in the model.

Sequence-of-returns risk — the fact that the order of good and bad years strongly changes the outcome — is explained in words here but is not modelled. The calculator works with no taxes and no costs and makes no safe-withdrawal-rate claim. It is distinct from the saving phase (C01/C02) and from deriving a target capital from a desired withdrawal (C17).

Formula and variables

r = (annual return / 100) / 12each month m: K -> K * (1 + r) - Em (interest first, withdrawal at end of month)Em = E * (1 + d)^floor((m - 1) / 12) (dynamic step, duration mode)E = K0 * r / (1 - (1 + r)^(-n)), n = years * 12 (amount mode)Ee = K0 * r (capital-preserving withdrawal)
K0
starting capital at the beginning of the drawdown phase
r
monthly rate = nominal annual return assumption divided by 100 and by 12
K
running capital balance during the monthly iteration
E
monthly withdrawal (duration mode: input; amount mode: result)
Em
withdrawal in month m, including the yearly dynamic step
d
annual increase of the withdrawal as a decimal, duration mode only
n
number of months = chosen duration in years times 12
Ee
capital-preserving withdrawal: only the monthly interest, the capital stays intact in the model

Worked examples

Example 1 (duration mode): 300,000, 4% p.a., 2,000 per month

Example inputs
ModeDuration (fixed withdrawal)
Starting capital€300,000.00
Return assumption4% per year
Monthly withdrawal€2,000.00
Annual increase of the withdrawal0%
Example results
How long the capital lasts208 months (17 years, 4 months)
Total of withdrawals€416,000.00
Capital-preserving withdrawal / month€1,000.00

The monthly rate is r = 4 / 100 / 12. Each month the capital first grows by the interest and is then reduced by €2,000.00. Because €2,000.00 is above the capital-preserving withdrawal of €1,000.00 (= €300,000.00 · r), the capital is drawn down: after 208 full withdrawals the remainder no longer covers another full withdrawal. In total €416,000.00 was withdrawn. All figures are example assumptions; sequence-of-returns risk, taxes and costs are not included.

Example 2 (amount mode): 300,000, 4% p.a., 25 years

Example inputs
ModeAmount (fixed duration)
Starting capital€300,000.00
Return assumption4% per year
Chosen duration25 years
Example results
Possible monthly withdrawal€1,583.51
Capital-preserving withdrawal / month€1,000.00
Capital at the end of year 25≈ 0

The annuity formula E = €300,000.00 · r / (1 − (1 + r)^(−300)) gives a constant withdrawal of about €1,583.51 per month that exhausts the capital in exactly 300 months. Feeding €1,583.51 back into duration mode as a fixed withdrawal, the plan ends after 300 months. This figure is not a safe withdrawal rate — real returns fluctuate (sequence-of-returns risk), and taxes or costs are not taken into account here.

Assumptions

  • The return is constant within the scenario (your assumption — real returns vary from year to year).
  • Monthly model: monthly rate r = annual return assumption / 100 / 12; each month interest is credited first, then the withdrawal is taken (end of month).
  • The dynamic increase raises the withdrawal once per completed year; months 1 to 12 run at the base amount.
  • The search horizon in duration mode is 1,200 months (100 years); beyond that the capital counts as preserved.

Limitations of this calculator

  • Sequence-of-returns risk (the order of good and bad return years) is explained but not modelled.
  • No taxes and no costs in this version; it makes no safe-withdrawal-rate claim.
  • No guarantee and no product is modelled (e.g. no specific drawdown product); inflation only if you build it into the return assumption yourself.
  • Distinct from the saving phase (C01/C02) and from deriving a target capital from a desired withdrawal (C17).

Frequently asked questions

What does "capital is drawn down" mean versus "capital is preserved"?

If you withdraw more per month than the interest alone (K0 · r), the capital falls over time and eventually runs out — that is drawdown. If you withdraw at most the interest, the capital stays unchanged in the model (a perpetual income). The calculator shows the threshold and which side of it you are on.

Why is sequence-of-returns risk not calculated?

The calculator deliberately assumes a constant return so the result stays transparent. In reality the order of good and bad years also drives how long the money lasts: weak years early on hurt a withdrawal plan more than weak years late. This sequence-of-returns risk is explained here but not modelled.

Are taxes and costs included?

No. This version works with no taxes and no account or fund costs. Both reduce the withdrawal you can actually take; net them out separately if needed, or subtract them approximately from your return assumption.

What is the dynamic increase?

The dynamic increase raises your withdrawal once per completed year by a fixed percentage, for example to mimic an inflation adjustment. Months 1 to 12 run at the base amount; the first step applies from month 13. The dynamic increase exists only in duration mode.

How does this relate to C17 and C50?

C16 shows the drawdown path from an existing capital. C17 works the other way and derives the target capital from a desired withdrawal, and C50 finds the gap from needs minus expected income. The saving phase before that is C01 or C02.

Sources and further reading

Official and independent sources on this topic. The links open each website in a new tab; no content is loaded from them into this page.

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Last reviewed: 12/09/2026 · All calculations run in your browser – inputs are not stored. ·How we check our calculators