Compound Growth with Withdrawals Calculator

This calculator models an investment that is growing and being drawn down at the same time, the situation almost everyone faces in retirement or when living partly off a lump sum. A pot of money earns a return each year, but you are also taking an income from it, and the outcome hinges on the tug of war between the two: if your withdrawals are smaller than the growth, the balance keeps climbing even as you spend from it, but if they are larger, the capital steadily erodes and can run out. You enter your starting balance, the annual return you expect, the fixed amount you withdraw each year, and the number of years to project, and the calculator steps through year by year, applying the return and then the withdrawal, to show the ending balance, the total you will have withdrawn, and crucially whether the money lasts the distance or runs dry, and in which year. For a view in today's dollars, enter an after-inflation return so the figures reflect real buying power. It is a clear way to sanity-check a drawdown plan, test how long a redundancy payout or inheritance would last, or see how much you could safely take without exhausting your savings.

Withdrawal is taken at the end of each year after growth. Enter an after-inflation return for a real-terms view. Estimate only, not financial advice.