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.
Do you also want to factor in inflation, taxes or investment fees into your withdrawal calculations? Then see this Investment Calculator. Set its "Cash Flow Type" to "Income."
Pick a Date
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.