Drawdown Calculator
Enter the pot, the income you want, the return and inflation.
Portfolio lasts
β
Enter values above
Withdrawal rate
β
Total withdrawn
β
Balance at the end
β
4% rule income
β
Years of income if returns were zero
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Portfolio value ($) | 500000 |
| Annual withdrawal ($) | 30000 |
| Expected return (%) | 5 |
| Inflation rate (%) | 2.5 |
| Years to test | 30 |
| Result | Value |
|---|---|
| Portfolio lasts | 22 years |
| Withdrawal rate | 6.00% |
| Total withdrawn | $917,533 |
| Balance at the end | $0 |
| 4% rule income | $20,000 |
| Years of income if returns were zero | 16.7 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Drawdown Calculator
- Portfolio value ($) β default 500000
- Annual withdrawal ($) β default 30000
- Expected return (%) β default 5
- Inflation rate (%) β default 2.5
- Years to test β default 30
- Press Calculate to update the results instantly.
Frequently asked questions
The finding that a retiree withdrawing 4% of the starting pot, increased with inflation each year, historically lasted 30 years in most market conditions. It is a planning guideline, not a guarantee.
With lower expected returns, many researchers now suggest 3.3β3.5% for a 30-year retirement. A flexible approach β trimming withdrawals after bad years β raises the sustainable rate.
Because withdrawals rise every year. At 2.5% inflation, a $30,000 income becomes $49,000 after 20 years, so the portfolio must grow just to stand still.