Investment · Retirement income
Investment payout calculator.
Taking regular withdrawals from a portfolio? See the date the money runs out at a payout you choose, or the largest level payout that lasts exactly as long as you need.
A level payout that empties a balance B over N periods at periodic return i is B × i ÷ (1 − (1 + i)−N). For example, $500,000 at 5% over 20 years, paid monthly, is $3,299.78 a month ($39,597 a year). The return is whatever you enter — no rate is assumed.
Inputs
Result
Fill the form and press Calculate.
Worked example
You hold $500,000, expect 5% a year, and want a flat monthly payout for 20 years. The monthly rate is i = 0.05 ÷ 12 = 0.4167% and N = 240 payouts, so payout = 500,000 × 0.004167 ÷ (1 − 1.004167−240) = $3,299.78. Withdraw $3,500 a month instead and the same balance lasts about 18 years and 2 months.
Formula notes
Level payout (end of period): PMT = B × i ÷ (1 − (1 + i)−N). With a 0% return it reduces to B ÷ N. Start-of-period payouts (annuity due) are the same figure divided by (1 + i).
Inflation indexing: the payout in year k is the first-year payout × (1 + g)k−1. The tool finds the first-year payout p such that the discounted sum of all indexed payouts equals your balance: B = p × Σ (1 + g)⌊(t−1)÷n⌋ ÷ (1 + i)t, t = 1…N, where n is payouts per year.
Depletion date: the schedule is simulated period by period (growth, then payout), and the final payout is whatever remains. Past 100 years the simulation stops and reports the payout as sustainable.
This is the textbook time-value-of-money annuity formula, not a rate or table from any one source, so there is no data to go stale; the standard derivation is on Wikipedia: Annuity valuation (formula checked 30 September 2026). The calculator was verified against the known $3,299.78 result above. For the Canadian minimum you must take from a RRIF, use the RRIF Minimum Withdrawal Calculator.
Frequently asked questions
Which rate should I enter?
Whatever you believe is realistic after fees. The tool assumes nothing: it compounds exactly the annual return you type, once per payout period. Try a low and a high value to see how sensitive the answer is.
Why does the schedule show the same payout in dollars rising each year?
That is inflation indexing. If you enter 2.5%, the first-year payout is increased by 2.5% at the start of each later year so it keeps its buying power. Set it to 0 for a flat payout.
Is a fixed-percentage withdrawal the same as a fixed dollar one?
No. Here the percentage is applied once to your starting balance to set the first-year dollar amount, which is then held (or indexed). It is not recalculated each year on the shrinking balance.
Does this include tax, fees or market swings?
No. It is straight-line arithmetic on one constant return. Real returns vary year to year, so a bad early sequence can deplete a portfolio sooner than shown. Taxes on RRSP/RRIF withdrawals are separate; see the related tools.
What does the 100-year limit mean?
If the balance has not run out after 100 years the tool stops and tells you the payout is sustainable on those inputs, since the return covers the withdrawals.
Estimate only
This tool does arithmetic on the return and payout you enter. It does not forecast markets, include taxes or fees, or model varying returns, and it is not financial advice. Real portfolios do not earn a constant rate.