Retirement Withdrawal Calculator
With $1,000,000 and a 4% starting rate, both methods withdraw $40,000 in year 1. At 5% return before 0.3% fees and 2.5% inflation, fixed dollar funds all 30 years to age 95 with $568,493 left (nominal); fixed percentage pays $23,929 in today's dollars in year 30 and leaves $1,232,776 (nominal). Use this retirement withdrawal calculator to compare steady planned spending power with income that follows your savings balance.
Retirement withdrawal calculator
Both methods pay $40,000 in year 1 ($3,333 a month).
Fixed dollar targets $40,000 of today's spending power each year and lasts through age 95 with $568,493 left (nominal). Fixed percentage pays $23,929 in today's dollars in year 30 (lowest $23,929 at age 95) and leaves $1,232,776 nominal.
Fixed dollar steadies planned spending power; fixed percentage adjusts income to the balance and can require substantial cuts.
Compare income and savings
| Metric | Fixed dollar | Fixed percentage |
|---|---|---|
| Year-1 withdrawal | $40,000 | $40,000 |
| Year-10 withdrawal (today’s dollars) | $40,000 | $34,104 |
| Year-20 withdrawal (today’s dollars) | $40,000 | $28,567 |
| Year-30 withdrawal (today’s dollars) | $40,000 | $23,929 |
| Final-year withdrawal at age 95 (today’s dollars) | $40,000 | $23,929 |
| Lowest annual withdrawal (today’s dollars) | $40,000 | $23,929 |
| Age at lowest withdrawal (first occurrence) | 66 | 95 |
| Total withdrawals (today’s dollars) | $1,200,000 | $939,089 |
| Balance at age 95 (nominal) | $568,493 | $1,232,776 |
| Balance at age 95 (today’s dollars) | $271,025 | $587,717 |
Annual withdrawal by age (today's dollars)
Balance by age (nominal dollars)
First three years, every fifth year and the final year appear below. Withdrawals and balances here are nominal. Fixed-dollar withdrawals show actual payments, including a partial shortfall year and zero after depletion. Year 1 ends at age 66.
| Year | Age at year end | Fixed dollar paid | Fixed dollar balance | Fixed percentage withdrawal | Fixed percentage balance |
|---|---|---|---|---|---|
| 1 | 66 | $40,000 | $1,007,000 | $40,000 | $1,007,000 |
| 2 | 67 | $41,000 | $1,013,329 | $40,280 | $1,014,049 |
| 3 | 68 | $42,025 | $1,018,930 | $40,562 | $1,021,147 |
| 5 | 70 | $44,153 | $1,027,708 | $41,132 | $1,035,493 |
| 10 | 75 | $49,955 | $1,032,287 | $42,592 | $1,072,247 |
| 15 | 80 | $56,519 | $1,003,786 | $44,103 | $1,110,304 |
| 20 | 85 | $63,946 | $929,163 | $45,669 | $1,149,713 |
| 25 | 90 | $72,349 | $791,418 | $47,290 | $1,190,520 |
| 30 | 95 | $81,856 | $568,493 | $48,968 | $1,232,776 |
Compare withdrawal methods by return, rate and order
Each row changes one assumption while keeping the caption's other inputs fixed. Full means every planned dollar was paid over the selected horizon. A remaining fixed-percentage balance says nothing about whether its income covers your household budget.
Fixed dollar vs fixed percentage by return
| Return before fees | Fixed dollar: years funded | Fixed dollar: ending balance (real) | Fixed %: year-30 withdrawal (real) | Fixed %: lowest withdrawal (real) | Fixed %: ending balance (real) |
|---|---|---|---|---|---|
| 3% | 26 | $0 | $13,374 | $13,374 | $321,958 |
| 4% | 30 (full) | $24,891 | $17,915 | $17,915 | $435,651 |
| 5% | 30 (full) | $271,025 | $23,929 | $23,929 | $587,717 |
| 6% | 30 (full) | $621,256 | $31,870 | $31,870 | $790,520 |
| 7% | 30 (full) | $1,111,235 | $42,326 | $40,000 | $1,060,223 |
By withdrawal rate at a 5% return
| First-year rate | Fixed dollar: years funded | Fixed dollar: ending balance (real) | Fixed %: year-30 withdrawal (real) | Fixed %: lowest withdrawal (real) | Fixed %: ending balance (real) |
|---|---|---|---|---|---|
| 3% | 30 (full) | $676,011 | $23,902 | $23,902 | $790,520 |
| 4% | 30 (full) | $271,025 | $23,929 | $23,929 | $587,717 |
| 5% | 27 | $0 | $22,394 | $22,394 | $435,651 |
| 6% | 21 | $0 | $20,061 | $20,061 | $321,958 |
A larger starting rate gives more income now, but changes both the later income path and the reserve. Compare the lowest annual withdrawal alongside the ending balance, rather than choosing a row from the reserve alone.
Same 30 returns, different order
| Ordering | Fixed dollar: years funded | Fixed dollar: ending balance | Fixed %: lowest withdrawal (real) | Fixed %: ending balance |
|---|---|---|---|---|
| good-first | 30 (full) | $2,712,766 | $33,982 | $1,281,299 |
| as-listed | 30 (full) | $1,199,957 | $23,646 | $1,281,299 |
| bad-first | 9 | $0 | $7,167 | $1,281,299 |
Fixed percentage never runs out in these illustrative paths and ends with the same balance in every order, but income dips after bad years. Fixed dollar keeps its planned spending power steady; the order decides whether it lasts. All tables are constant-return or illustrative arithmetic, not a backtest or a probability of success.
Calculated 2026-11-12 with the model described in /methodology (section 1e).
How this calculator works
How to use the retirement withdrawal calculator
Enter your savings on the day withdrawals start, the share you plan to take in the first year, the age withdrawals start and the age the plan must reach. Then set one yearly return before fees, inflation and fees. Read the summary table first: it shows each method's year-1 amount, its lowest year in today's dollars and the balance left. The charts show the income path and the balance path; the CSV lists every year.
Monthly figures are the annual withdrawal divided by 12; the model does not simulate monthly withdrawals or monthly returns. Savings growth before retirement is not modeled, so enter the balance you expect at the start. Ages only label years; they do not decide when an account allows withdrawals or penalty-free access.
Formulas and timing
Fixed dollar applies your rate once: starting balance × rate sets first-year annual spending. The shared drawdown model receives that amount divided by 12 as monthly spending, with income and tax zero. From year 2, planned spending rises by inflation, regardless of the remaining savings.
Fixed percentage instead takes rate × that year's opening balance. Return net of fees applies to the opening balance, and the withdrawal happens at year end. Closing balance is opening × (1 + return − fees − rate), floored at zero. It does not take the percentage of the balance after growth. When net return equals the withdrawal rate, nominal income stays flat while inflation reduces its buying power.
For year t, today's-dollar withdrawals divide nominal amounts by (1 + inflation)^(t − 1); year 1 therefore uses today's dollars. The plan-age balance divides by (1 + inflation)^(years elapsed). Here “today” means the start of withdrawals. Ages label year ends: starting at 65 makes age 66 the first payment row.
Fixed-dollar income uses the amount actually paid: the smaller of planned withdrawal and opening savings plus growth. A shortfall year can pay only part; later years pay zero. Years funded excludes that partial year. The comparison stops at your plan age, up to 60 years, rather than testing an indefinite retirement.
Fixed dollar vs fixed percentage: trade-offs
Fixed dollar makes budgeting simpler because the target preserves spending power. Maintaining that target after a loss uses more of the remaining savings. Fixed percentage shares changes in the balance with your income: a bad year reduces the next year's opening balance and therefore its withdrawal. A positive reserve can coexist with income far below your needs.
Order matters differently for the two methods. Fixed-percentage ending savings multiply the same annual factors in any order, so the product is unchanged. Interim balances and income still differ. Fixed-dollar withdrawals subtract a scheduled amount each year, so early losses can leave fewer dollars invested for the recovery.
Hybrids such as floor-and-ceiling rules or guardrails limit or trigger spending changes. They exist but are not calculated here. Required minimum distributions are a different, IRS-defined percentage-style rule and are not modeled. Neither a hybrid nor an RMD schedule can be inferred from this fixed-rate comparison.
Limits of this comparison
There are no income streams and no tax inputs here. For income and simplified tax inputs, use the retirement spending calculator or 4% rule calculator. Account types, changing expenses, healthcare shocks, investment allocation and an inheritance target are not modeled.
The main calculator repeats one return and inflation assumption; the ordering table uses invented annual returns. Neither estimates future market behavior. Fixed percentage retains a positive mathematical balance only while each annual multiplier is positive. Extreme losses can break that condition; if available funds are below the formula withdrawal, that year pays only what is left.
Retirement withdrawal FAQ
What is the best withdrawal strategy for retirement?
The trade-off is spending stability versus flexibility. Fixed dollar aims to preserve purchasing power but can exhaust savings. Fixed percentage reduces withdrawals when the balance falls, so a remaining balance does not ensure enough income for your bills. Compare the income floor you need with the cuts you could manage; this calculator does not recommend a strategy.
How much can I withdraw from my retirement account each year?
At the example’s 4% rate on $1,000,000, both methods start at $40,000 a year, about $3,333 a month. At 5% return, 0.3% fees and 2.5% inflation, fixed percentage pays $23,929 in today’s dollars in year 30; fixed dollar still targets $40,000. These are model outputs, not a recommended allowance.
What is a fixed percentage withdrawal strategy?
It recalculates the dollar withdrawal every year as a percentage of that year’s opening savings balance. Here the return net of fees applies to opening savings first, then the opening-balance withdrawal is taken at year end. The rate stays fixed, but the dollars change as the balance changes; there is no separate inflation increase.
Can a fixed percentage withdrawal run out of money?
It never reaches $0 in this model while every year’s net return minus the withdrawal rate is greater than −100%. That condition holds in all three illustrative orders. Income can still shrink sharply: the bad-first example’s lowest annual withdrawal is $7,167 in today’s dollars. Only an extreme one-year loss that breaks that condition can exhaust the balance; that year pays what is left.
How is this different from the 4% rule?
The 4% rule applies a starting percentage once, then raises that dollar amount with inflation. It is the fixed-dollar side of this comparison when the first-year rate is 4%. Reapplying 4% to each new opening balance is the fixed-percentage side. The 4% rule calculator explores the former with optional income and tax inputs. See the 4% rule calculator.
Does this include Social Security or taxes?
No. Both methods withdraw from savings without income streams or tax. Social Security can reduce what savings must cover, and taxes can increase the gross withdrawal required to meet a budget. The retirement spending calculator accepts income and a simplified flat tax assumption; neither page calculates your actual tax liability. Try the retirement spending calculator.
Related tools
Explore inflation-adjusted withdrawals with the 4% rule calculator, solve a budget with the retirement spending calculator, or check the formulas in methodology.