FinanceInstant Tool
How Long Will My Money Last Calculator
Calculate retirement savings longevity, portfolio depletion, and annual withdrawal sustainability.
Retirement Longevity Estimator
Calculate how long your savings will last based on monthly withdrawals and investment growth
How How Long Will My Money Last Calculator Works
Years = -ln 1 - Balance × r ÷ Annual Withdrawal ÷ ln 1 + r where r is net annual returnSavings longevity depends on your initial nest egg, annual investment return rate, monthly withdrawals, and inflation cost of living adjustments. If your annual withdrawal rate is lower than your real investment return, your portfolio sustains indefinitely without principal depletion.
Variable Breakdown
P
Starting BalanceTotal current retirement savings or nest egg portfolio balance
W_m
Monthly WithdrawalDesired monthly living expense withdrawal amount
r
Annual ReturnExpected annual investment return percentage
i
Annual InflationExpected annual inflation cost of living adjustment percentage
Example Calculation
Retirement Longevity for $750,000 Portfolio
A retiree with $750,000 invested at a 6.0 percent return, withdrawing $4,000 monthly with a 2.5 percent inflation rate.
- Annual withdrawal = $4,000 × 12 = $48,000
- Initial withdrawal rate = $48,000 ÷ $750,000 = 6.4 percent
- Net real portfolio return = 6.0 percent - 2.5 percent = 3.5 percent
- Simulate monthly balance with compound growth and inflation-adjusted withdrawals
- Portfolio sustains for 23 years and 4 months before depletion
Result:Savings will last approximately 23 years and 4 months, supporting $1.25M in total withdrawals
Portfolio Longevity Matrix by Starting Balance and Monthly Withdrawal
| Starting Balance | $3,000 Monthly | $4,000 Monthly | $5,000 Monthly | $6,000 Monthly |
|---|---|---|---|---|
| $500,000 | 22 Years | 14 Years | 10 Years | 8 Years |
| $750,000 | 38 Years | 23 Years | 16 Years | 13 Years |
| $1,000,000 | Permanent 6% Return | 36 Years | 24 Years | 18 Years |
| $1,500,000 | Permanent 6% Return | Permanent 6% Return | 42 Years | 29 Years |
Frequently Asked Questions
How long will $500,000 last in retirement?
At a 6 percent investment return and withdrawing $3,000 per month with 2.5 percent inflation, $500,000 will last approximately 22 years.
What is the 4 percent rule in retirement?
The 4 percent rule suggests withdrawing 4 percent of your portfolio in year one of retirement, then adjusting that dollar amount annually for inflation, historically providing a 95 percent probability of lasting at least 30 years.
How does inflation impact retirement savings longevity?
Inflation increases the dollar amount needed each year to maintain purchasing power. Over 20 years at 3 percent inflation, a $4,000 monthly expense grows to over $7,200 per month.
Can my money last forever in retirement?
Yes, if your withdrawal rate is lower than your portfolio real return after inflation, your principal balance remains intact or grows, allowing perpetual distributions.
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