Savings Withdrawal Calculator
Find out how long your savings will last with a regular withdrawal, or how much you can withdraw each month to make your pot last a set number of years.
How Savings Withdrawal Calculator works
How long savings last
With interest: months = −ln(1 − r × PV ÷ PMT) ÷ ln(1 + r), where r is the monthly rate, PV is starting balance, and PMT is monthly withdrawal. Without interest: months = balance ÷ withdrawal.
Maximum sustainable withdrawal
PMT = PV × r ÷ [1 − (1 + r)^(−n)], the standard annuity payment formula. This gives the level monthly withdrawal that exhausts the balance (including interest) exactly at the target date.
Inflation and real returns
This calculator uses nominal rates. In reality, inflation erodes purchasing power. To maintain real (inflation-adjusted) withdrawals, reduce the stated interest rate by the expected inflation rate (e.g., 4% nominal − 2.5% inflation = 1.5% real rate).
Frequently asked questions
How long will £100,000 last with £1,000 monthly withdrawals?
At 4% annual interest (compounded monthly): approximately 11.5 years. At 0% interest: exactly 100 months (8.3 years). At 5% annual interest: approximately 14 years.
How much can I withdraw monthly from £200,000 to last 20 years?
At 4% annual interest: approximately £1,212/month. At 0% interest: £833/month. At 5% annual interest: £1,320/month.
What happens if my withdrawal rate exceeds the interest earned?
Your balance declines over time. How long it lasts depends on the shortfall between interest earned and withdrawals. This calculator shows the exact duration.
Should I use this for retirement planning?
This is a simplified estimate. Retirement planning should also account for state pension, inflation, tax on withdrawals, annuities, and healthcare costs. Speak to a regulated financial adviser for personalised retirement planning.