See the monthly paycheck your savings can produce, and how many years it lasts with inflation-adjusted withdrawals.
Turns your nest egg into an estimated first-year monthly paycheck and simulates how long the balance lasts under inflation-adjusted withdrawals.
The first-year monthly income equals your balance multiplied by the withdrawal rate and divided by twelve. Each following year the withdrawal rises with inflation to preserve purchasing power, while the remaining balance grows at your expected return. The simulation counts the years until the balance is exhausted, giving a plain-language sense of longevity.
Because a single return assumption can mislead, the tool also runs 3% and 5% return stress tests so you can see how sensitive your plan is to weaker markets. A 4% starting rate has historically been a common benchmark, but it is a guideline, not a guarantee. Sequence risk, taxes, and fees can all shorten how long the money lasts, so treat this as education rather than financial advice.
It remains a widely cited starting point, though some researchers now favor slightly lower rates for longer retirements. Your ideal rate depends on your horizon and flexibility.
They re-run the projection at lower and higher returns so you can gauge how much longevity swings with market performance. It highlights whether your plan has a comfortable cushion.
No, the figure is a gross withdrawal before any income tax. Your actual spendable amount will be lower depending on account types.
See the exact formula and a worked example on our methodology page.