Nest Egg Withdrawal Calculator - How Long Will Your Money Last?

When you retire, you may need to withdrawal money from your savings and retirement accounts. The Nest Egg Withdrawal Calculator lets you determine how fast you will drawn down the money in your nest egg by making withdrawals each year.

With the calculator, you specify whether you want to withdraw a fixed percentage of the nest egg each year or a specified dollar amount each year. And you may see the effect of inflation by specifying an annual inflation rate. In fact, you should specify an inflation rate. Otherwise, you will underestimate the amount of money that you need to accumulate.

Here is a simple example. Suppose that you have a $500,000 nest egg. You want to take out five percent of the nest egg's balance each year for 20 years. And assume that you would receive a six percent return on the balance each year. Further assume a three percent inflation rate. The Nest Egg Withdrawal Calculator shows that the balance of the nest egg after 20 years is $312,449.36. With zero inflation the balance would be $574,856.46.

Form Input

On the calculator form, enter only numbers (with or without decimal points).

Do not enter:

Currency symbols like dollar signs
Commas
Percent signs

Nest Egg Withdrawal Calculator
Withdrawal Option: Percent Dollar
Nest Egg Starting Balance:	$
Annual Rate of Return:	%
Withdrawal (First Year):	% or $
Annual Inflation Rate:	%
Number Years of Withdrawals:
Nest Egg Balance

Computational Notes

For each year the gain (or loss if you chose a negative rate of return) is computed before the withdrawal is made.

The effect of inflation starts with year two for the two withdrawal options.

For the dollar withdrawal option the amount of the annual withdrawal amount is increased each year by the inflation rate. So the annual dollar withdrawal amount is compounding at the rate of inflation.

For the percent withdrawal option the amount of the withdrawal amount for each year is equal to the annual withdrawal percentage plus the annual inflation rate.

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Posted December 31, 2007.