💸 Savings Withdrawal Calculator
Calculate how long your savings will last
Interest rate on your savings account or investments
How to Use This Calculator
Enter Current Savings
Input your current savings amount - the total amount you have saved.
Enter Monthly Withdrawal
Enter the amount you plan to withdraw each month from your savings.
Enter Interest Rate
Enter the annual interest rate on your savings account or investments. This affects how long your savings will last.
Review Results
See how long your savings will last with regular withdrawals, total amount withdrawn, and final balance. Use this to plan your savings withdrawal strategy.
Formula
Monthly Balance = (Previous Balance × (1 + Monthly Rate)) - Monthly Withdrawal
Months Until Depletion: Calculated iteratively until balance reaches zero
Where:
• Monthly Rate = Annual Rate ÷ 12
• Balance decreases by withdrawal amount each month
• Balance increases by interest each month
Example Calculation:
If savings $100,000, monthly withdrawal $2,000, rate 4%:
• Monthly rate = 4% ÷ 12 = 0.3333%
• Month 1: ($100,000 × 1.003333) - $2,000 = $98,333
• Month 2: ($98,333 × 1.003333) - $2,000 = $96,661
• Continues until balance reaches zero
• Savings will last: ~52 months (4.3 years)
About Savings Withdrawal Calculator
A savings withdrawal calculator helps you determine how long your savings will last with regular monthly withdrawals. This calculator accounts for both the interest earned on your savings and the withdrawals you make each month. It shows you how many months (or years) your savings will sustain your withdrawal pattern, helping you plan for retirement, sabbaticals, or other periods when you'll be withdrawing from savings. This is useful for understanding if your savings are sufficient for your planned withdrawal rate.
When to Use This Calculator
- Retirement Planning: See how long retirement savings will last
- Sabbatical Planning: Plan for time off with savings withdrawals
- Emergency Planning: Understand how long emergency fund will last
- Withdrawal Strategy: Plan sustainable withdrawal rates
Understanding Savings Withdrawals
- Interest Impact: Higher interest rates help savings last longer
- Withdrawal Rate: Lower withdrawals mean savings last longer
- Balance Decline: Balance decreases each month after withdrawal
- Sustainability: If interest exceeds withdrawals, savings grow
Why Use Our Calculator?
- ✅ Duration Calculation: See how long savings will last
- ✅ Withdrawal Planning: Plan sustainable withdrawal rates
- ✅ Interest Impact: See how interest affects duration
- ✅ Retirement Planning: Plan for retirement withdrawals
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
How does interest rate affect how long savings last?
Higher interest rates help your savings last longer because your balance grows faster, offsetting withdrawals. For example, with $100,000 and $2,000/month withdrawals: at 0% interest, savings last 50 months; at 4% interest, savings last 52 months; at 6% interest, savings last 55 months. The higher the interest rate, the more your savings earn, extending how long they last.
What if my savings can last more than 100 years?
If your savings can last more than 100 years, it means your interest earnings exceed or closely match your monthly withdrawals. In this case, your savings are sustainable - you can withdraw the specified amount indefinitely without depleting your principal. This typically happens when the monthly withdrawal is less than the monthly interest earned.
How is this different from retirement withdrawal calculator?
This calculator shows how long fixed monthly withdrawals will last, accounting for interest. The retirement withdrawal calculator uses the 4% rule with inflation adjustments. This calculator is simpler and shows duration for fixed withdrawals, while the retirement calculator shows inflation-adjusted withdrawals over a retirement period.
What's a safe withdrawal rate?
A safe withdrawal rate depends on your interest rate and how long you need savings to last. As a general rule: if your annual interest rate is 4%, withdrawing less than 4% of your savings annually (about 0.33% monthly) means your savings can last indefinitely. Withdrawing more means your savings will deplete over time. Use this calculator to see how your specific withdrawal rate affects duration.