How long will your money last in retirement? It depends on three things: how much you have saved, how much you withdraw each year, and the return your investments earn. As a rule of thumb, the 4% rule suggests that withdrawing 4% of your savings per year gives your money a strong chance of lasting 30 years. Enter your own numbers in the calculator below for a precise, year-by-year answer.
Free Calculator: How Long Will Your Money Last?
Retirement Longevity Calculator
How to Use This Calculator
- Enter your current retirement savings — the total across your 401(k), IRA, and other investment accounts.
- Enter your planned annual withdrawal — how much you expect to spend from savings each year.
- Enter your expected annual return — 5–7% is typical for a balanced portfolio; be conservative.
- Click Calculate to see how many years and months your money will last, the year it runs out, and how much interest you earn along the way.
How the Calculation Works
The calculator runs a year-by-year simulation. Each year, your balance first grows by your expected return, then your annual withdrawal is subtracted:
balance = balance × (1 + return) − withdrawal
It repeats this for up to 100 years and stops in the year your balance hits zero. If your balance never hits zero within 100 years — because your investment growth covers your withdrawals — it tells you your money lasts 100+ years. The simulation assumes a fixed withdrawal and a fixed return every year; it does not adjust for inflation or market volatility, so treat the result as a planning estimate, not a guarantee.
What Is the 4% Rule?
The 4% rule is the most famous guideline for retirement withdrawals. It says you can withdraw 4% of your savings in your first year of retirement, then adjust that dollar amount for inflation each year, with a high probability that your money lasts 30 years.
The rule comes from financial planner William Bengen’s 1994 research, later confirmed by the 1998 Trinity study. Both tested a roughly 50/50 mix of stocks and bonds against historical U.S. market data. It is a useful starting point, but it is not a guarantee: today’s market valuations, longer life expectancies, fees, and taxes can all change the outcome, which is why many planners now suggest 3–3.5% or flexible withdrawal strategies instead.
Here is how long $500,000 lasts at a 6% annual return at different withdrawal levels, using the calculator above:
| Annual withdrawal | Withdrawal rate | How long $500,000 lasts |
|---|---|---|
| $20,000 | 4% | 100+ years |
| $25,000 | 5% | 100+ years |
| $30,000 | 6% | 100+ years* |
| $40,000 | 8% | ~23.8 years |
| $50,000 | 10% | ~15.7 years |
Worked Examples
Example 1: The money runs out
Priya, 62, has $300,000 saved. She plans to withdraw $40,000 per year and expects 5% annual returns. Plugging these into the calculator:
- Her money lasts 9 years and 7 months
- It runs out in 2036
- Total interest earned along the way: about $85,553
“Your $300,000 will last 9 years and 7 months at $40,000/year with 5% returns.” Because her $40,000 withdrawal exceeds the $15,000 of interest her balance earns in year one, the balance shrinks every year until it is gone. Priya should consider withdrawing less, working a few more years, or delaying Social Security.
Example 2: The money lasts
Mark, 60, has $800,000 saved. He plans to withdraw $35,000 per year and expects 6% annual returns. The calculator’s verdict:
“Your money lasts 100+ years — you’re set!” His $48,000 of first-year interest more than covers the $35,000 withdrawal, so his balance actually grows over time. Mark could safely spend more, retire earlier, or leave a larger legacy.
Related Calculators
- Compound Interest Calculator — see how your savings grow over time.
- Retirement Calculator — estimate how much you need to save for retirement.
Frequently Asked Questions
How long will $500,000 last in retirement?
It depends on your withdrawal rate and returns. Using the calculator above with a 6% annual return: withdrawing $40,000 per year, $500,000 lasts about 23.8 years; withdrawing $25,000 per year, it can last indefinitely because the interest covers the withdrawal. As a rough guide, the 4% rule suggests $500,000 supports $20,000 per year for 30 years.
What is the 4% rule for retirement?
The 4% rule says you can withdraw 4% of your retirement savings in your first year of retirement, then adjust that amount for inflation each year, with a high probability your money lasts 30 years. It comes from William Bengen’s 1994 research and the 1998 Trinity study, based on a roughly 50/50 mix of stocks and bonds. It is a guideline, not a guarantee — many planners now recommend 3–3.5% for longer retirements.
How long will $1 million last in retirement?
With a 6% annual return, $1 million lasts about 33 years at $70,000 per year, and can last indefinitely at $60,000 per year or less, since the interest covers the withdrawal. At a lower 4% return, $1 million lasts about 21.6 years at $70,000 per year. Your actual timeline depends on your spending and investment mix.
What annual return should I assume?
Most planners use 5–7% nominal annual returns for a balanced stock-and-bond portfolio, or 3–5% after inflation. It is safer to use a conservative number — being pleasantly surprised beats running out of money. If you are mostly in bonds or cash, assume 2–4% instead.
Does this calculator account for inflation?
No. The calculator assumes your withdrawal stays fixed in dollar terms. In reality, inflation raises your spending over time. A simple workaround: reduce your expected return by 2–3 percentage points to approximate inflation’s effect, or plan to withdraw slightly less than the calculator suggests you can.
How can I make my money last longer?
Save more before retiring, withdraw less each year, delay retirement (and Social Security) by a few years, keep investment fees low, and consider part-time income early in retirement. Even a 1% lower withdrawal rate can add many years to how long your money lasts.
Disclaimer: This calculator is for educational purposes only and is not financial advice. Investment returns vary, and your actual results will differ. Consider consulting a qualified financial advisor before making retirement decisions.