Should I include emergency fund in this calculation?

The savings withdrawal calculator works for any savings pool - emergency funds, general savings accounts, retirement accounts, CDs, or money market funds. For an emergency fund (typically held in a high-yield savings account or money market), use the current APY as the interest rate. For a retirement brokerage account, use your expected portfolio return (4–6% for a conservative withdrawal-phase portfolio).

Savings Withdrawal Calculator

Q: How long will $100,000 in savings last with $1,000/month withdrawal?

At zero interest: $100,000 / $1,000 = 100 months (8.3 years). At 3% annual interest: approximately 114 months (9.5 years). At 5% annual interest: approximately 127 months (10.6 years). The interest earned on the remaining balance each month slows depletion. If the interest earned exceeds the monthly withdrawal, the balance never depletes.

Q: What is the maximum monthly withdrawal to last 20 years?

For savings of $200,000 at 4% annual return, the maximum monthly withdrawal that lasts exactly 20 years is: PMT = $200,000 × [r(1+r)^n] / [(1+r)^n − 1] = $200,000 × [0.003333 × (1.003333)^240] / [(1.003333)^240 − 1] = approximately $1,212/month.

Q: How does interest rate affect how long savings last?

Interest rate has a significant impact on savings longevity, especially over long periods. For $500,000 withdrawn at $2,000/month: at 0% interest, it lasts 250 months (20.8 years); at 3%, it lasts 362 months (30.2 years); at 5%, it lasts indefinitely (the monthly interest earned at 5%/12 = 0.417% × $500,000 = $2,083 exceeds the $2,000 withdrawal).

Find out how long your savings will last - or how much you can withdraw each month.

🏦 How Long Will Your Savings Last?

The savings withdrawal calculator answers two fundamental questions in personal finance: "If I withdraw $X per month from my savings, how long will the money last?" and "What is the maximum I can withdraw each month to make my savings last Y years?" Both questions depend on three variables: the total savings balance, the monthly withdrawal amount, and the interest rate the savings earns while being drawn down.

Unlike a simple division (balance ÷ monthly withdrawal), the correct calculation accounts for interest earned on the remaining balance during each withdrawal period. Money that hasn't been withdrawn yet continues earning returns - and this interest income substantially extends how long the savings last. For example, $200,000 withdrawn at $1,500/month with no interest lasts 133 months (11.1 years), but with a 4% annual return it lasts approximately 187 months (15.6 years) - more than 4 extra years from a modest return rate.

This calculator is applicable to any savings situation: emergency fund drawdowns, retirement portfolio withdrawals, college fund spending, or any scenario where you're spending from a lump sum over time. For retirement planning, it complements the retirement withdrawal calculator which also models the 4% rule. For everyday savings, it helps you determine whether your emergency fund will cover a period of unemployment or large expected expenses.

📐 Savings Duration Formula

n = −ln(1 − S × r / W) / ln(1 + r)

Max Monthly Withdrawal: W = S × r(1+r)ⁿ / [(1+r)ⁿ − 1]

Break-Even: W = S × r (monthly interest = monthly withdrawal)

n = Number of months until depletion

S = Starting savings balance

r = Monthly interest rate (annual rate / 12)

W = Monthly withdrawal amount

The duration formula is derived from the present-value annuity formula solved for n. The break-even withdrawal is simply the monthly interest income (S × r monthly) - if you withdraw exactly this amount each month, the balance stays constant forever. Withdraw less and the balance grows; withdraw more and it depletes according to the duration formula.

📖 How to Use This Calculator

Steps

Choose what to solve - "How Long Savings Last" for duration given withdrawal, or "Max Monthly Withdrawal" for the maximum sustainable amount given duration.

Enter total savings - the starting balance of your savings account, retirement account, or investment portfolio.

Enter monthly withdrawal or target duration - depending on which mode you chose.

Enter interest rate - the annual rate earned on the balance during withdrawal (0% for a non-interest-bearing account, 4–6% for a diversified portfolio).

Click Calculate to see duration or max withdrawal, total withdrawn, interest earned, and break-even amount.

💡 Example Calculations

Example 1 - $200,000 at $1,500/month, 4% Return

Savings = $200,000 | Withdrawal = $1,500/month | Rate = 4%

Monthly rate r = 4/12/100 = 0.3333%; Break-even = $200,000 × 0.003333 = $666.67/month

n = −ln(1 − 200,000 × 0.003333 / 1,500) / ln(1.003333) = −ln(1 − 0.4444) / 0.003328 = 187 months (15.6 years)

Total withdrawn = $1,500 × 187 = $280,500 | Interest earned = $80,500

Try this example →

Example 2 - Max Withdrawal to Last 20 Years

Savings = $300,000 | Duration = 20 years | Rate = 5%

Max monthly withdrawal = $1,980/month | Total = $475,200 | Interest earned = $175,200

Try this example →

❓ Frequently Asked Questions

How long will $100,000 in savings last with $1,000/month withdrawal?+

At zero interest: 100 months (8.3 years). At 3% annual interest: approximately 114 months (9.5 years). At 5% annual interest: approximately 127 months (10.6 years). Interest earned on the remaining balance each month slows depletion significantly.

What is the maximum monthly withdrawal to last 20 years?+

For $200,000 at 4% annual return, the maximum monthly withdrawal that lasts exactly 20 years is approximately $1,212/month. Use the "Max Monthly Withdrawal" mode to calculate this instantly for any balance, duration, and rate.

How does interest rate affect how long savings last?+

Interest rate has a significant impact on savings longevity. For $500,000 at $2,000/month: at 0% interest, it lasts 250 months (20.8 years); at 3%, it lasts 362 months (30.2 years); at 5%, it lasts indefinitely (the monthly interest exceeds the withdrawal). A higher rate extends longevity dramatically over long periods.

What is the break-even withdrawal amount?+

The break-even withdrawal is the monthly amount equal to the interest earned on the balance - so the principal never decreases. Break-even = Balance × Monthly Rate. For $500,000 at 5% annual rate: break-even = $500,000 × (5/12/100) = $2,083/month. Withdraw less and the balance grows; withdraw more and it depletes.

🔗 Related Calculators

📌 Quick Tips

💡Even a modest interest rate (3–5%) during the withdrawal phase dramatically extends how long your savings last - the balance earns returns while you withdraw.

💡If your monthly withdrawal is less than the monthly interest earned, your savings will last indefinitely - the balance never depletes.

💡Emergency fund withdrawals with zero interest: $30,000 at $1,000/month lasts exactly 30 months. Add 3% interest and it lasts 32.5 months.