# Savings Withdrawal Calculator

The *Savings Withdrawal Calculator* will help you calculate your savings withdrawals and generate a withdrawal schedule based on the inputs you provide.

Please provide at least three of the following inputs to get started. You may set one to zero to indicate an unknown value:

**Savings on Hand (PV)**- This is the amount of savings you currently have in your account.**Regular Withdrawal Amount**- This is the amount you plan to withdraw on a regular basis.**Number of Withdrawals**- This is the total number of withdrawals you plan to make.**Annual Interest Rate**- This is the annual interest rate for your savings account.

In addition to these above inputs, you will also need to provide the following secondary inputs:

**Today's Date**- This is the date you expect your "Savings on Hand" to be the amount indicated above.**First Withdrawal Date**- This is the date of your first withdrawal.**Withdrawal Frequency**- This is how often you plan to make withdrawals (e.g., monthly, quarterly, annually).**Compounding Frequency**- This is how often interest is compounded on your investment account.

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### Information

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Once you have entered at least three primary inputs and the secondary inputs, click the "Calc" button to calculate the unknown value (if any) or the "Withdrawal Schedule" to see your personalized schedule. The withdrawal schedule will show you the amount of each withdrawal and the date on which it will be made. The charts will provide a visual representation of your savings over time and the depletion of the initial investment.

If you need to make any changes to your inputs, simply update the relevant fields and click "Calc" again.

A withdrawal savings calculator can help you make informed decisions about your financial future. By understanding how much you can safely withdraw each year, you can plan your retirement or other financial goals with greater confidence. You'll also be able to adjust your savings and withdrawal strategies as needed to ensure that you're on track to meet your goals.

There are a few key factors to keep in mind when using a withdrawal savings calculator. First, the calculator's results are based on certain assumptions about your investment returns and withdrawal periods. These assumptions may not hold true in the future, so it's important to review your savings and withdrawal strategies regularly to ensure that they're still on track.

Second, the calculator assumes that you'll withdraw the same amount of money each year, adjusted for inflation. In reality, your financial needs and lifestyle may change over time, so it's important to be flexible and adjust your withdrawals as needed.

Finally, the calculator does not consider other income sources, such as Social Security or pensions. These sources of income can significantly impact your withdrawal strategies, so it's important to factor them into your overall financial plan.

Hopefully, you'll find this calculator helpful in planning your savings withdrawals. If you have any questions or feedback, please do not hesitate to ask them below.

You will find the savings withdrawal calculator to be very flexible. While it is most frequently used to calculate how long an investment will last assuming some periodic, regular withdrawal amount, it will also solve for the " Starting Amount", "Annual Interest Rate" or "Regular Withdrawal Amount" required if you want to dictate the duration of the payout. That is, if the withdrawals must last for say 25 years, it will calculate one of these other three values.

Enter any three values and enter a "0" (zero) for the one unknown value.

A note or two about "Compounding Frequency". Selecting he "Exact/Simple" option sets the calculator so it will not compound the interest. Also, the exact number of days between withdrawal dates is used to calculate the interest for the period. The "Daily" option uses the exact number of days between dates, but daily compounding is assumed. (The interest earned each day is added to the principal amount each day.) The "Exact/Simple" compounding option is the most conservative setting. That is, using it will result in the lowest future value. Daily compounding will result in nearly the greatest future value (except for "Continuous Compounding".

The other compounding frequencies are based on periods of time other than days. Each period is assumed to be of equal length for the purposes of interest calculations. That is, assuming a balance of $10,000, the interest earned for January will be the same interest earned for February given the same interest rate.

## Pat Sturgis says:

Why do I repeatedly get “NaN” inserted in the Number of Withdrawals field, where I have inserted a “0,” with the other 3 fields filled with values? The calculator worked once, with a different interest rate, but hasn’t worked since. I have tried changing browsers, re-booting.

## Karl says:

"NaN" means "not a number". A user should never see that. It means the calculator is not show an appropriate message.

Without knowing your specific inputs, I can’t tell you what the exact reason is you are seeing NaN. However, I can make a guess.

My guess is, you increased the interest rate and now the amount being withdrawn is less then the amount earned in interest for the period. Which means the number of periods is infinite. You can test my guess by reducing the interest rate a bit (say by 0.5 at a time).

If you give me your exact inputs, I’m also happy to let you know the reason.

## BobA says:

Where is the money “stored” to earn the interest? Stocks, cash savings, combo. I am completely ignorant on this subject.

## Karl says:

If your question is, where should you invest the money, I’m afraid I’m not qualified to provide investment advise. I am happy to answer any questions you have about what calculator to use, or how to use a calculator.

## Guy says:

this is really a great tool Karl, thank you

## Karl says:

Thank you, Guy. I’m happy to hear you found it useful.

## Greg Taylor says:

This is exacty what I was looking for as I approach retirement! THANKS!

## Karl says:

You’re welcome. Happy retirement!

## Aldo says:

Is this based on what we use to call a “sinking fund” equation back in engineering school?

## Gary says:

How to choose compounding frequency on mutual fund investments?

## Karl says:

I’m sorry, but I don’t understand what you mean. The compounding frequency is the compounding frequency. It does not matter if it’s for a loan, a mutual fund, or whatever. If you are asking "what" compounding frequency you should pick for a mutual fund, I would suggest annually, as that is most conservative.

## Gary says:

Forgive my naivete’; I was simply asking what method of compounding to choose and have entered into the box on your calculator, when the monies are currently held in a mutual fund account.

## Karl says:

It’s a good question. I just wasn’t sure what your question was.

The compounding option generally is made available for savings and similar accounts that specify a compounding frequency.

But the calculator can be used for mutual funds, and what you set it to depends on how you set the rate. Say, for example, your mutual fund states they average a 7% annual return. Then I would set compounding to annually.

However, if again, for example, you see that your fund returned 2% for the last quarter then you need to do a little arithmetic. Since the calculator asks for an annual rate, you should enter 8%. And since the return was for a quarter, I would set the compounding to quarterly.

But the bottom line is when projecting how long income from a mutual fund might last, it can only be an estimate since we do not know how the fund will perform in the future. And the “error” from picking the “wrong” compounding frequency may pale compared to the change in the fund’s future performance. So compounding for a mutual fund is definitely not something one needs to stress out over.

## Ev says:

Thank you for this calculator. It’s exactly what I was looking for. As spouses who are already retired, it’s been impossible to find calculators that made sense. Other calculators I’ve found have to do with pre-retirement. Do you have one that adds in social security income?

## Karl says:

I’m not exactly sure what you want to calculate. This retirement calculator is for retirement planning. It has a saving/investing cash flow and a withdrawal cash flow. The withdrawal cash flow allows the user to include social security income.

## Lee Holsenbeck says:

your annual interest rate is 5.5%, so if it is a mutual fund; you are expecting a 5.5% return annually or is it a 5.5% return on some sort of money market, CDs, or annuities ?

## Karl says:

That rate is simply a default value. The calculators on this site are designed so a user can quickly see what a schedule will look like without having to stop and enter values.

Enter whatever rate fits your needs.

## Ed says:

Could you add inflation support?

1000/month today won’t look like much in 15 or 20 years.

## Karl says:

Please try this investment calculator. It has a withdrawal feature and the amount can be adjusted by an inflation factor. Please let me know how you make out.

## Ed says:

Based on another calculator titled ‘How Long Will My Money Last’ I would expect 300K, at 5% gain and 3% inflation for 15 years (180 pmts) to provide $1934 at payment #1 and $3034 at payment #180.

In the first year that calculator reports the monthly range for the 1st twelve withdrawal payments begin at $1934 and end at $1988, approx. a $5 increase each month.

The https://accuratecalculators.com/investment-calculator does not replicate, even closely, those results. Your Withdrawal Calculator comes the closest to the interface I desire, albeit it doesn’t support inflation or report incrementing monthly withdrawal figures.

Payment or donation would be forth coming if that happened, and I think the app would rise to the top in the world of calculators.

Thanks

Ed

## Karl says:

Hi Ed, first, let me say that these calculations are hypothetical since there are several assumptions being made, as I’m sure you understand. Also, two calculators can model the withdrawal differently, and neither will be wrong. That said, I’m wondering what you mean by "even closely?" I see the two calculations as being close.

The investment calculator adjusts the withdrawal for inflation once a year, not each month. If I take $1,934 and increase it by 3%, I get $1,992, which should be the withdrawal amount starting with the 13th period, and that’s exactly what the investment calculator gives me. What did you get?

To confirm this, make sure your options are set this way:

The calculator has different values when it’s first loaded. Make sure you set the adjustment for inflation to "Yes," and remove the tax rate.