Savings Withdrawal Calculator
Monthly income a lump sum can pay out over a fixed number of years before it runs out.
Results
Monthly withdrawal
1319.59
Annual withdrawal
15,835.11
Total
395,877.63
Interest earned
145,877.63
What this tool does
This is the mirror image of a loan: instead of you paying a bank, the capital pays you, and whatever is left keeps earning interest. The capital is exhausted exactly at the end of the period, so the figure is a spending plan, not a permanent income.
Formula
withdrawal = principal × r ÷ (1 − (1 + r)^−n)
Variables
| Symbol | Meaning | Unit |
|---|---|---|
p | Starting capital | — |
r | Annual interest rate | % |
n | Years | — |
W | Monthly withdrawal | — |
WY | Annual withdrawal | — |
TW | Total | — |
IN | Interest earned | — |
Worked example
- Starting capital250,000
- Annual interest rate4 %
- Years25
- Monthly withdrawal1319.59
- Annual withdrawal15,835.11
- Total395,877.63
- Interest earned145,877.63
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.