Savings Withdrawal Calculator
Calculate how long your savings will last, maximum withdrawal amounts, and remaining balance
Savings Withdrawal Analysis
Total amount currently in your savings account
Amount you plan to withdraw each month
Annual percentage yield (APY) on your savings
Withdrawal Analysis Results
Withdrawal Analysis
Example Withdrawal Scenario
Retirement Savings Example
Initial Balance: $500,000
Monthly Withdrawal: $2,000
Annual Interest Rate: 4%
Result: Savings will last approximately 35 years
Safe Withdrawal Rate
The "4% rule" suggests withdrawing 4% annually from retirement savings.
For $500,000: Maximum annual withdrawal = $20,000 ($1,667/month)
This approach aims to preserve capital indefinitely.
Withdrawal Strategies
4% Rule
Withdraw 4% annually
Conservative approach
Interest Only
Withdraw only interest earned
Preserves principal
Dynamic
Adjust based on performance
Flexible approach
Withdrawal Tips
Consider inflation when planning withdrawals
Keep an emergency fund separate
Review and adjust withdrawal rates annually
Account for taxes on withdrawals
Consider sequence of returns risk
Understanding Savings Withdrawal Strategies
What is Savings Withdrawal?
Savings withdrawal refers to the systematic process of taking money out of your savings account to meet ongoing expenses, typically during retirement or periods when you're not earning regular income.
Key Considerations
- •Interest rates affect how long savings last
- •Inflation reduces purchasing power over time
- •Market volatility can impact returns
- •Tax implications vary by account type
Withdrawal Formulas
Future Balance:
FV = PV × (1 + r)^n - PMT × [((1 + r)^n - 1) / r]
Maximum Withdrawal:
PMT = (PV - FV) × r / (1 - (1 + r)^-n)
- FV: Future value/remaining balance
- PV: Present value/current balance
- PMT: Payment/withdrawal amount
- r: Interest rate per period
- n: Number of periods
Note: These calculations assume constant withdrawal amounts and interest rates.