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 For $500,000 withdrawn at $2,000/month: at 0% interest, it lasts 250 months (20.8 years); at 3%, it lasts 362 months (30.2 years); at 5%, it lasts indefinitely (the monthly interest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 Money that hasn't been withdrawn yet continues earning returns - and this interest income substantially extends how long the savings last. For example, $200,000 withdrawn at $1,500/month with no interest lasts 133 months (11.1 years), but with a 4% annual return it lasts approximately 187 months (15.6 years) - more than 4 extra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 difference between this calculator and the retirement withdrawal calculator?+

This calculator models any finite savings drawdown - not just retirement. Use it for an education fund drawn over 4 years, a medical corpus over 10 years, or a rental deposit fund. The retirement withdrawal calculator focuses on 20-35 year post-retirement horizons with inflation adjustments.

How do I make my savings last longer?+

Three levers: (1) Reduce withdrawal amount - even 10% less extends duration significantly. (2) Increase returns - moving from 5% FD to 7% balanced fund adds years. (3) Make one-time lump sum additions. Run this calculator with different combinations to find which lever has the most impact.

What is a sustainable withdrawal rate for a 10-year corpus?+

For a 10-year horizon, you can withdraw roughly 9-11% per year from a corpus earning 7% interest without depleting it. For a 20-year horizon, the sustainable rate drops to 7-8%. The exact rate depends on your corpus size and expected returns - this calculator shows the precise monthly amount.

Should I keep savings in a fixed deposit or liquid fund during drawdown?+

A laddered approach works best: keep 1-2 years of withdrawals in a liquid fund for easy access, and the rest in FDs of varying maturities or debt mutual funds. This earns higher interest while ensuring liquidity. Avoid keeping the entire corpus in savings accounts which earn only 3-4%.

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.

How do I calculate how long my savings will last?+

n = -ln(1 - r x PV / PMT) / ln(1+r), where PV is the starting balance, PMT is the periodic withdrawal, and r is the period rate. For $500,000 at 5% with $30,000/year withdrawals, savings last approximately 30 years. This calculator solves this automatically and shows the depletion timeline.

What happens if I withdraw more than the interest earned?+

If your withdrawal exceeds portfolio return, you are spending principal. The balance declines each year. If you earn 5% on $500,000 ($25,000) but withdraw $35,000, you draw down $10,000 per year, with the depletion accelerating in later years due to compounding.

How does inflation affect my savings withdrawal plan?+

A fixed nominal withdrawal erodes purchasing power over time. To maintain lifestyle, withdrawals should increase with inflation (2-3% annually). This calculator models inflation-adjusted withdrawals to show the true impact on savings longevity.

What is a sustainable withdrawal rate for a 20-year retirement?+

For 20 years at 5% return, you can sustainably withdraw about 8% of the initial portfolio per year. For 30 years, about 6.5%. For 40 years, about 5.5%. The 4% rule targets 30-year retirements with equity-heavy portfolios.

🔗 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.