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Retirement Income Calculator

See the income your savings can safely pay you.

How it is calculated

The calculation is a single percentage of your savings: annual income = nest egg × withdrawal rate / 100 and monthly income = annual income / 12. The nest egg is in dollars and the withdrawal rate is the percentage of the starting balance you take out each year. Neither value can be negative; a rate of 0 simply gives 0. The tool is deliberately simple: it does not model investment growth, inflation, taxes, fees, Social Security or pension income, or how long you will live. It shows the income a chosen rate would produce today, so use it to compare rates, not to prove that a balance will last.

Worked example

Savings of 750000 and a withdrawal rate of 4%. Annual income = 750000 × 4 / 100 = $30,000.00. Monthly income = 30000 / 12 = $2,500.00. If you tried a 3% rate on the same balance, the annual income would fall to $22,500.00, which shows how strongly the result depends on the rate you pick.

Try this example →

Common mistakes

  • Entering the rate as 0.04. The field is a percentage, so 4% is 4; 0.04 would give an income of only 0.04% of the balance.
  • Including only part of your savings. Add every account you plan to draw from, but leave out the home you will live in.
  • Treating the annual figure as after-tax. Withdrawals from many retirement accounts are taxable, and this tool does not subtract tax.
  • Assuming the same dollar amount is safe forever. The calculator takes a percentage of today's balance and does not adjust for inflation or market falls in later years.
  • Forgetting other income. Pensions or state benefits are not added, so compare the result with your total spending need.

About this calculator

Once savings replace a paycheck, the key question shifts from 'how much have I saved' to 'how much can I safely spend each year without running out.' This calculator applies a chosen withdrawal rate — a percentage of the total nest egg, such as the well-known 4% rule as a starting reference point — to your savings balance to estimate the sustainable annual or monthly income it can provide.

Retirement planners and pre-retirees use withdrawal-rate math to test whether a given balance can realistically fund a target lifestyle, and to see how adjusting the withdrawal percentage trades off income today against the risk of depleting savings decades into retirement. Because sustainable withdrawal rates depend on market returns, inflation, and time horizon, this calculator is a starting estimate to stress-test against different assumptions, not a guarantee.

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