Enter the savings you expect to have when you retire, how many years the money needs to cover and how fast it might keep growing, and this calculator turns that pot into a monthly income — adding any Social Security or pension on top, and showing year by year how the balance winds down. Our Retirement Calculator answers the earlier question — how big the pot could be; this one spends it. Every figure is an estimate built on a steady assumed growth rate, not a prediction. There is no sign-up — the results update as you type.
Start with the pot: the savings you expect to have on the day you retire. If you are still building it, the Retirement Calculator linked below projects that figure. Add Social Security or a pension if you want them counted as income on top of the pot, and add a desired monthly spending if you want to see how long the pot lasts instead.
the headline figure
level, for 25 years
added on top, if entered
monthly income x 12
Savings pot you start with$500,000.00
Growth during retirement$376,885.06
Paid out from savings in total$876,885.06
Social Security + other income over the period$0.00
Total income over the period$876,885.06
The payout from savings is larger than the pot itself because the money still invested keeps growing while you draw it down — at the assumptions above, growth adds $376,885.06 on top of the pot.
| Year | Balance at start | Withdrawn | Growth | Balance at end |
|---|---|---|---|---|
| 1 | $500,000.00 | $35,075.40 | $24,765.87 | $489,690.47 |
| 2 | $489,690.47 | $35,075.40 | $24,238.41 | $478,853.48 |
| 3 | $478,853.48 | $35,075.40 | $23,683.97 | $467,462.05 |
| 4 | $467,462.05 | $35,075.40 | $23,101.16 | $455,487.81 |
| 5 | $455,487.81 | $35,075.40 | $22,488.54 | $442,900.95 |
| 6 | $442,900.95 | $35,075.40 | $21,844.57 | $429,670.12 |
| 7 | $429,670.12 | $35,075.40 | $21,167.66 | $415,762.37 |
| 8 | $415,762.37 | $35,075.40 | $20,456.11 | $401,143.08 |
| 9 | $401,143.08 | $35,075.40 | $19,708.16 | $385,775.84 |
| 10 | $385,775.84 | $35,075.40 | $18,921.94 | $369,622.38 |
| 11 | $369,622.38 | $35,075.40 | $18,095.50 | $352,642.48 |
| 12 | $352,642.48 | $35,075.40 | $17,226.78 | $334,793.85 |
| 13 | $334,793.85 | $35,075.40 | $16,313.61 | $316,032.06 |
| 14 | $316,032.06 | $35,075.40 | $15,353.72 | $296,310.37 |
| 15 | $296,310.37 | $35,075.40 | $14,344.72 | $275,579.69 |
| 16 | $275,579.69 | $35,075.40 | $13,284.10 | $253,788.39 |
| 17 | $253,788.39 | $35,075.40 | $12,169.21 | $230,882.20 |
| 18 | $230,882.20 | $35,075.40 | $10,997.29 | $206,804.09 |
| 19 | $206,804.09 | $35,075.40 | $9,765.41 | $181,494.10 |
| 20 | $181,494.10 | $35,075.40 | $8,470.50 | $154,889.20 |
| 21 | $154,889.20 | $35,075.40 | $7,109.34 | $126,923.14 |
| 22 | $126,923.14 | $35,075.40 | $5,678.55 | $97,526.28 |
| 23 | $97,526.28 | $35,075.40 | $4,174.55 | $66,625.43 |
| 24 | $66,625.43 | $35,075.40 | $2,593.60 | $34,143.63 |
| 25 | $34,143.63 | $35,075.40 | $931.77 | $0.00 |
How the estimate works:each month the pot grows at one twelfth of the annual growth rate you enter, then that month's withdrawal comes out. The sustainable income is the level monthly amount that leaves the pot at exactly zero in the final month. The growth rate is a steady, illustrative assumption — real markets vary year to year and returns are never guaranteed. Figures are before tax and do not adjust for inflation, and spending in real retirements is rarely level.
How to use this calculator
- Enter the savings you expect to have at retirement — the pot on day one. If you are still building it, project it first with the Retirement Calculator linked below.
- Set how many years the money needs to last. Many people test 25 or 30 years, but try a longer span too and watch the monthly income fall.
- Set an expected growth rate for the money that stays invested while you draw from it — an assumption to test, not a guaranteed return.
- Add Social Security and any pension or other monthly income if you want them counted on top of the pot.
- Read the total monthly income, then scroll the year-by-year table to see the balance winding down. Optionally, enter a desired monthly spending to ask the opposite question: how long the pot lasts.
Two calculators, two questions
Retirement planning has two halves, and they need different tools. The first half is building the pot: contributing month by month, capturing an employer match, and letting growth compound until you stop work — that is what our Retirement Calculator projects. The second half is spending the pot: turning one lump sum into a monthly income that holds up for as long as you need it, without running dry early or being more cautious than you have to be. That is the job of this page. The output of the first calculator — the projected pot — is the main input of this one.
How the maths works, in plain words
Retired money is rarely stuffed under a mattress — most of it stays invested and keeps growing while you draw from it. So the calculator works month by month: the balance grows a little, then that month's income comes out. The sustainable income it headlines is the level monthly amount sized so the very last payment lands in the final month of the years you chose, leaving the pot at zero right on schedule. Because growth keeps topping the pot up along the way, the total paid out is more than the pot itself: a $500,000 pot at 5% growth pays out $876,885 over 25 years, of which $376,885 is growth earned during retirement. Change the years and the trade-off moves with them — a shorter retirement can afford a bigger monthly income, a longer one has to stretch each dollar further.
The 4% rule — and how this calculator differs
You will often see the 4% rule quoted as the answer to this problem. It says: withdraw 4% of your savings in the first year of retirement, then nudge that dollar amount up with inflation each year. On a $500,000 pot, year one pays $20,000 — about $1,667 a month. It is a widely cited guideline built from past US market history, designed to make a portfolio survive roughly 30 years. Treat it as a useful yardstick, not a guarantee: it cannot know your tax situation, your health costs, or what markets do next. This calculator takes a different approach — a level monthly amount that plans to use the pot up across exactly the years you pick, with no inflation adjustment built in. Comparing the two on your own numbers is a reasonable way to find a range you are comfortable with, rather than betting everything on either single figure.
A worked example
Start with $500,000 at retirement, 25 years to cover, and 5% assumed growth. The pot pays a level $2,922.95 a month — $35,075.40 a year, and $876,885 in total, because growth during retirement adds $376,885 on top of the pot. Add $1,800 a month of Social Security on top and the total monthly income becomes $4,722.95, while the pot itself only has to provide the $2,922.95. Now ask the other question: if spending meant drawing $3,500 a month from the pot, the same $500,000 at 5% would last 18 years and 2 months — a shorter, richer retirement than the 25-year plan. Both answers come from the same steady-growth assumption; they are illustrations for comparing choices, not predictions.
Before tax — and the inflation question
Two honest limits. First, every figure here is before tax: withdrawals from pre-tax retirement accounts are generally taxed as income when you take them, while Roth money generally is not taxed again — so the spendable income from the same pot depends on where your savings sit. Second, the calculator does not build in inflation: the monthly income is level in dollar terms, which means its buying power slowly shrinks if prices rise. A simple way to get an inflation-aware feel is to run the growth rate lower — entering growth minus the inflation you expect (say 5% growth with 3% inflation entered as 2%) gives a rougher but more conservative picture. Either way, most people also keep spending flexible — drawing a little less after a bad market year does more for a pot's lifespan than any single starting number.
More calculators & tools
Still building the pot? The Retirement Calculator projects it, 401(k) match included. The growth engine behind both is the Compound Interest Calculator, and the Inflation Calculator shows what rising prices do to money standing still. Alongside the long-term money, the Emergency Fund Calculator sizes the cash cushion that keeps a surprise bill away from your investments. All twelve other tools are on the calculators hub, and the budgeting guides cover the spending side that this income has to support.
This calculator provides estimates for general education only and is not financial, legal, or tax advice. Results use the figures you enter and a steady assumed growth rate; real investment returns vary, are not guaranteed, and are reduced by taxes, fees and inflation, and Social Security and pension amounts depend on your own record and choices, so treat the output as an illustration, not a prediction or a promise. For advice about your own situation, talk to a qualified professional.
Frequently Asked Questions
How much monthly income will $500,000 give me?+
It depends on how many years the money has to cover and how fast it grows while you spend it. At a steady 5% growth, $500,000 spread over 25 years pays $2,922.95 a month before tax. Stretch the same pot over 30 years and it pays $2,684.11 a month; compress it into 20 years and it pays $3,299.78. With no growth at all, 25 years pays $1,666.67 a month — just the pot divided up. Try your own pot, years and growth in the calculator above.
What is the 4% rule?+
It is a widely cited rule of thumb: in your first year of retirement you withdraw 4% of your savings, then adjust that dollar amount for inflation each year after. On a $500,000 pot that is $20,000 in year one, about $1,667 a month. The idea behind it is to make the money last around 30 years without planning to spend it down to zero on a fixed date. It is a guideline, not a guarantee — it rests on past US market behaviour, and your taxes, fees, health costs and markets will differ. This calculator answers a slightly different question: the level monthly income that spreads your pot across exactly the number of years you choose.
Does this calculator include Social Security?+
Yes, if you enter it. Add your expected monthly Social Security (and any pension or other regular income) and the calculator counts it as income on top of what your savings pay. Income from those sources does not draw down the pot — it reduces what the pot itself has to provide, which is why the same savings can last longer or pay more once they start. Leave the boxes empty if you want to see what your savings alone could pay.
How long will my savings last?+
Enter a desired monthly spending and the calculator works it out month by month, after subtracting any Social Security or other income you entered. As an example, drawing $3,500 a month from a $500,000 pot growing at 5% makes the money last 18 years and 2 months. If your other income already covers the spending you enter, the answer is simpler: your savings do not need to be touched at all.
Is this before or after tax?+
Before tax. The calculator does not model income tax, because what you owe depends on where the money sits and on your other income. As a general point, withdrawals from pre-tax retirement accounts are usually taxed as income when you take them, while money in Roth accounts is generally not taxed again on withdrawal. So the after-tax income from the same pot can differ — treat these figures as the gross amount your savings could pay, and check the tax side separately for your own mix of accounts.
What's the difference between this and the Retirement Calculator?+
They answer the two halves of the same plan. The Retirement Calculator looks forward from today and projects the savings pot you could have on the day you retire, including any 401(k) employer match. This calculator starts where that one finishes: it takes that pot and turns it into a monthly income, and shows how long the pot lasts at different levels of spending. Used together, the first gives you the number to type into the second.