Withdrawal Plan Calculator
Calculate how much you need to save or how much you will accumulate with your SIP
Total value of investment
$500,000
Retirement Withdrawal Calculator
A Retirement Withdrawal Plan allows you to invest a lump sum in your retirement account and set a fixed amount to withdraw regularly over a period of time. With each withdrawal, your investment balance decreases, while the remaining funds continue to grow based on the expected return rate.
For example, suppose you have $100,000 in a retirement portfolio and decide to withdraw $2,000 per month. Each month, your account balance will be reduced by $2,000, and the balance remaining will continue to earn returns.
Use the above calculator to estimate how much you can withdraw from your retirement savings over a specified period.
How Can a Retirement Withdrawal Calculator Assist You?
With a Retirement Withdrawal Plan, you invest a lump sum and then withdraw a fixed amount periodically. After each withdrawal, the remaining balance continues to grow through compounding returns.
It is challenging to accurately calculate monthly withdrawals and the remaining balance over time. Our calculator simplifies these complex calculations and provides a clear withdrawal schedule. This tool makes it easy for investors to plan their retirement income without requiring expert financial knowledge.
Example of a Retirement Withdrawal Plan
In this example, an individual has invested $100,000 in their retirement account with an annual return rate of 6%. They withdraw $2,000 per month. The table below shows a sample withdrawal schedule for the first 12 months.
| Month | Starting Balance | Withdrawal | Interest Earned |
|---|---|---|---|
| 1 | $100,000 | $2,000 | $500 |
| 2 | $98,500 | $2,000 | $493 |
| 3 | $96,993 | $2,000 | $485 |
| 4 | $95,478 | $2,000 | $477 |
| 5 | $93,955 | $2,000 | $469 |
| 6 | $92,424 | $2,000 | $461 |
| 7 | $90,885 | $2,000 | $453 |
| 8 | $89,338 | $2,000 | $446 |
| 9 | $87,784 | $2,000 | $439 |
| 10 | $86,223 | $2,000 | $431 |
| 11 | $84,654 | $2,000 | $424 |
| 12 | $83,078 | $2,000 | $416 |
How to Use the Retirement Withdrawal Calculator?
The calculator is user-friendly and easy to use. Simply ensure that all values are correctly entered:
- You will find fields for the initial investment amount, expected annual return, and monthly withdrawal amount.
- Enter your investment details based on your retirement plan.
- Click calculate to generate a detailed withdrawal schedule similar to the table above.
How Can a Retirement Withdrawal Calculator Benefit You?
Retirees and individuals planning for retirement can benefit significantly from a fixed withdrawal plan. Such a plan provides a predictable monthly income that supplements other retirement income sources (e.g., pensions, Social Security).
- A Retirement Withdrawal Plan ensures a steady income stream while allowing the remaining balance to continue growing.
- It’s easy to set and adjust the withdrawal amount based on your financial needs.
- The tool is accessible online and does not require any special expertise to operate.
- With a clear withdrawal schedule, you can better plan your finances and ensure your retirement savings last throughout your retirement years.