Turn a balance into an income figure using a withdrawal rate.
A savings income calculator shows the annual and monthly income a savings or investment balance can provide at a chosen withdrawal rate.
Income equals your balance times a withdrawal rate. The rate you choose sets how long the money lasts: a common guideline is around 4% a year for a roughly 30-year retirement, with lower rates lasting longer. This turns a lump sum into a usable spending figure.
A higher withdrawal rate means more income now but a greater risk of running out; a lower rate is safer but provides less. Early retirees often use a more conservative rate. Remember withdrawals from tax-deferred accounts are taxed, so your spendable income is lower than the gross figure shown.
Your balance times your withdrawal rate. At 4%, a $500,000 balance provides about $20,000 a year before taxes.
Around 4% of the starting balance a year is a common guideline for a long retirement. Lower rates last longer; higher rates risk running out.
Withdrawals from traditional retirement accounts are taxed as income, so your spendable amount is lower. Roth and taxable accounts are treated differently.
See the exact formula and a worked example on our methodology page.