Investment Withdrawal Calculator
Project an investment balance while taking monthly, quarterly or annual withdrawals. Include annual withdrawal increases, compare timing and estimate the starting withdrawal compatible with a target ending balance.
Withdrawal projection
| Year | Starting balance | Withdrawn | Investment growth | Ending balance |
|---|
Investment withdrawal formula
For a fixed end-of-period withdrawal, the ending balance is:
Ending balance = P(1 + r)n − W × ((1 + r)n − 1) ÷ r.
P is the starting balance, r is the return per withdrawal period, n is the number of periods and W is the withdrawal per period. When the periodic rate is zero, ending balance equals P − Wn. Beginning-of-period withdrawals use the annuity-due adjustment, and withdrawals that increase annually are simulated period by period.
Verified examples
| Inputs | Result |
|---|---|
| $500,000; $2,500 monthly; 6% annual return; withdrawals increase 2.5% yearly; 20 years; end timing | $222,539.57 ending balance; $766,339.73 withdrawn |
| $300,000; $2,000 monthly; 5% annual return; no increase; 10 years; end timing | $179,942.07 ending balance; $240,000 withdrawn |
| $100,000; $10,000 annually; 0% return; 10 years; end timing | Balance reaches zero after the tenth withdrawal |
With the first example and a $100,000 target ending balance, the estimated compatible starting monthly withdrawal is $2,721.83. That is $221.83 more than the entered $2,500.
How the projection works
The calculator converts the annual return to an equivalent monthly, quarterly or annual rate. It applies each withdrawal at the selected timing, increases the scheduled amount once per year and records investment growth separately from money withdrawn.
If a scheduled withdrawal is larger than the available balance, the tool withdraws the remaining balance, reports the depletion period and stops the projection. The target-compatible withdrawal is found by solving the same cash-flow model for the starting withdrawal that leaves the selected ending balance.
Input limits and assumptions
- Starting balance must be greater than zero. Monetary inputs accept up to two decimals and cannot exceed 1,000,000,000,000.
- Plan duration is from 1 through 100 whole years.
- Annual return and withdrawal increase must be greater than −100% and no more than 100%, with up to four decimal places.
- Return and withdrawal growth are constant assumptions. Actual market returns are variable and sequence-of-returns risk is not modeled.
- Taxes, fees, account rules, required minimum distributions and penalties are not included.
- A withdrawal increase is applied at the beginning of each new plan year; it is not a live inflation forecast.
- The result is an educational cash-flow projection, not investment, retirement or tax advice.
A plan that succeeds under a constant average return can still fail with unfavorable real-world return timing. Test conservative assumptions and maintain a separate cash reserve when appropriate.
Frequently asked questions
Is this the same as a retirement calculator?
No. This tool begins with an existing investment balance and models systematic withdrawals. A retirement calculator usually combines current age, future contributions, retirement age and an income goal.
What is the initial withdrawal rate?
It is the first year’s scheduled withdrawals divided by the starting balance. It is a descriptive scenario measure, not a recommendation or safe-withdrawal guarantee.
Why does withdrawal timing matter?
A beginning-of-period withdrawal leaves less money invested during that period. With a positive return, it therefore produces a lower ending balance than the same withdrawal taken at the end.
Related calculators
- Retirement Calculator — combine ages, contributions and an income goal.
- Compound Interest Calculator — project growth with deposits and no withdrawals.
- Time Value of Money Calculator — solve PV, FV, payment, rate or time.
- Inflation Calculator — compare purchasing power separately.