Savings Withdrawal Calculator

Whether your goal is to supplement your retirement income, fund a home renovation, plan for emergency expenses, or anything in between, it’s important to know how long your savings will last. Factors like the amount you withdraw, how often you make withdrawals, and the interest your savings account earns will all affect your balance.

Our savings withdrawal calculator can help you estimate how long your savings will last. Once you plug in your information, you’ll have a better idea of whether your planned withdrawals align with your financial goals. You can also compare different withdrawal strategies and make smarter decisions that set you up for success.

How to use the savings withdrawal calculator 

The savings withdrawal calculator can help you estimate how long your savings may last based on your planned monthly withdrawals and the interest your money earns. You can also use it to compare different withdrawal amounts and find out how much you could withdraw each month to make your savings last for a specific period. 

1. Enter the amount you currently have in savings 

Start with the amount you plan to use for regular withdrawals. If you want to keep part of your savings untouched for emergencies or another financial goal, don’t include that amount. 

For example, if you have $120,000 in total savings but want to keep $20,000 as an emergency fund, enter $100,000 in the calculator. 

2. Add your savings account APY 

Enter the current annual percentage yield (APY) earned on the money you plan to withdraw. You can typically find your APY on your bank’s website, mobile app, or account statement. 

For example, if your $100,000 is in a savings account earning a 3% APY, enter 3%. If you’re comparing savings accounts with different APYs, change the rate to see how earning more or less interest could affect your withdrawal timeline. 

3. Enter your planned monthly withdrawal 

Add the amount you expect to withdraw from your savings each month. Think about what the money needs to cover rather than choosing an arbitrary amount. 

For example, someone between jobs may need $3,000 per month to cover most living expenses. A retiree who receives Social Security or pension income may only need to withdraw an additional $1,000 per month from savings. Someone planning a career break may already know they need $2,500 per month for the next two years. 

If you’re still planning, try several withdrawal amounts to see how each one changes how long your savings may last. 

4. Choose how long you want your savings to last 

For example, you might need savings to cover 18 months between jobs, fund a five-year goal, supplement retirement for 20 years, or see how long $400,000 will support your monthly spending.

Enter your target timeline in years and months. The right timeline depends on why you’re withdrawing the money. 

Once you’ve entered your information, calculate the results. You can then adjust the withdrawal amount, APY, or timeline to compare different scenarios. 

How to understand your savings withdrawal calculator results 

The calculator provides more than an estimate of when your savings may run out. The results can also help you identify a potential shortfall, compare withdrawal amounts, and determine how much you may be able to withdraw while still reaching your target timeline. 

To show how the results work together, consider someone who has $100,000 in savings, earns a 3% APY, plans to withdraw $500 per month, and wants the money to last 25 years. 

Savings last 

This result estimates how many years and months your savings can support the monthly withdrawal you entered. 

In our example, withdrawing $500 per month from $100,000 earning a 3% APY is estimated to last 23 years and two months. Because the goal was 25 years, the current withdrawal amount may need to be adjusted if reaching the full timeline is important. 

Goal coverage 

Goal coverage shows how much of your selected timeline your savings are estimated to cover. 

In the example above, the savings cover 92.7% of the 25-year goal. This gives you a quick way to see how close your current withdrawal plan is to your target without focusing only on the number of years and months. 

Total withdrawals 

This result estimates how much money you could withdraw over the calculated period. 

In our example, the total withdrawals are approximately $139,000, even though the starting balance is only $100,000. The difference is possible because the remaining balance continues to earn interest while withdrawals are being made. 

Total interest earned 

This shows the estimated interest your savings may earn during the withdrawal period. 

For example, the $100,000 balance earning a 3% APY could generate approximately $38,803 in interest while the money is gradually withdrawn. 

This estimate assumes the APY remains unchanged. If your savings rate increases or decreases, your actual interest earnings and withdrawal timeline could change. 

Remaining savings balance 

This result shows how much money may remain at the end of your selected timeline. 

If your savings are projected to run out before reaching your goal, the remaining balance will be $0. If your withdrawal amount is low enough for the savings to last beyond your target period, this result shows the estimated amount you may still have left. 

Maximum monthly withdrawal 

This result estimates how much you could withdraw each month while making your savings last for your full target timeline. 

Returning to our example, withdrawing $500 per month would make the $100,000 savings balance last an estimated 23 years and two months. To make the money last for the full 25-year goal, the estimated maximum monthly withdrawal would be $474.21. 

This result can be particularly useful when you know how long the money needs to last but haven’t yet decided how much to withdraw each month. 

For example, someone planning a five-year break from work could use it to estimate a monthly spending limit. A retiree could compare the result with other income sources, while someone with $400,000 in savings could test different timelines before deciding how much of that money to rely on each month. 

How the savings withdrawal calculator works 

The calculator assumes your savings earn interest at the annual rate you entered, compounded monthly, and that withdrawals are made at the end of each month after interest is credited. 

To estimate how long your savings will last, the calculator adds the monthly interest earned to your remaining balance, subtracts your planned withdrawal, and repeats the calculation until the balance reaches $0. 

For example, with a $100,000 balance earning 3% APY and a $500 monthly withdrawal, interest is credited first each month before the $500 is deducted. This cycle then repeats using the new balance.

The calculator also estimates the maximum monthly withdrawal that would allow your savings to last for your selected number of years and months. 

The results are estimates and don’t account for inflation, taxes, account fees, changes in APY, or changes to your monthly withdrawal amount. 

How much should you withdraw from savings each month? 

Your unique situation will determine how much you should withdraw from your savings each month. To zero in on the right amount, consider your financial goal, how long you need your savings to last, and whether you have other sources of income.  

Here are a few recommendations based on different scenarios:  

• You want to supplement your monthly income. In this case, you’ll likely make smaller withdrawals to cover the gap between what you earn and what you spend.  

• You’re living off savings. If you’re between jobs or going through a career transition, for example, you may need to withdraw more money from your savings to cover essential expenses until you have a consistent income source again. 

• You’re planning for retirement. Once you’re retired, you may need to withdraw some savings to supplement investment and/or Social Security income. 

When deciding how much to withdraw, keep these factors in mind: 

• Expected future expenses: Think beyond your current monthly bills. Consider large upcoming expenses, such as home repairs, medical bills, or vacations that might require you to keep more of your savings today. 

• Emergency savings needs: Most financial experts recommend saving at least three to six months’ worth of expenses in an emergency fund. You may need more or less, depending on your income and risk tolerance. 

• Investment or savings account interest: If your money earns interest, it can help offset some of your withdrawals and ensure your savings last longer. The higher the interest rate, the more your balance can grow.  

• Inflation: Your purchasing power will go down as the cost of goods and services go up. That’s why you might need to increase your withdrawal rate over time. 

• Other income sources: Additional streams of income like wages from your job, pension payments, rental income, Social Security benefits, and investment distributions can all reduce how much money you need to pull from your savings.  

What should you do if your savings won’t last as long as you need? 

If you find that your calculated withdrawal timeline falls short of your goal, here are some strategies to explore.  

Adjust your monthly withdrawal amount 

You may need to reduce your monthly withdrawals to ensure your savings last longer. The calculator can help you play around with different withdrawal amounts to see how withdrawing less can affect your timeline. 

Supplement your savings with other income 

Look for ways to supplement your savings so that you won’t be as reliant on them. Consider a part-time job, side hustle, freelance work, or even utilizing your investments or Social Security benefits. 

Reconsider your withdrawal timeline 

It might make sense to revisit your withdrawal timeline to determine a more sustainable withdrawal plan. For example, you might want to work more hours, delay a large purchase, or postpone retirement.  

Consider whether your savings are earning a competitive APY 

The interest your savings earn can play a major role in how long your money lasts. That’s why it’s a good idea to shop around and compare annual percentage yields (APYs) at different banks and financial institutions. A higher APY can go a long way. 

Should you withdraw the same amount from savings every month? 

A fixed monthly withdrawal rate could be a smart move, but it’s not right for everyone. 

• When to consider a fixed monthly withdrawal rate: If your monthly expenses and income are relatively consistent, withdrawing the same amount every month is a solid choice. It can make it easier to track your spending and estimate how long your savings will last. 

• When to consider a variable monthly withdrawal rate: If your expenses and income fluctuate every month, you might need more flexibility with your withdrawals. This strategy might make sense if you’re self-employed, for example, and your income varies often. 

How should unexpected expenses affect your savings withdrawal plan? 

When you design a savings withdrawal plan, be sure to account for more than your anticipated monthly expenses. Unexpected expenses, such as home or car repairs, medical bills, and emergency travel can pop up when you least expect it and take a toll on your savings.  

You might also lose your job or other source of income. With a dedicated reserve fund for emergency situations, you can cover unforeseen expenses while still keeping your savings account in check.  

When should you recalculate your savings withdrawal plan? 

Your savings withdrawal plan is not set in stone. In fact, it can and will likely change over time. If the APY on your savings account goes down, you lose your job, or pick up a profitable side hustle, you might need to reduce or increase how much you withdraw. Be sure to review your plan on a regular basis and use the calculator to revisit your calculations as needed. 

Real-life savings withdrawal examples 

Withdrawal strategies can look very different based on your financial goals and individual circumstances. Here are a few examples of how different situations can affect a savings withdrawal plan. 

Using savings between jobs 

If you’re in between jobs, your savings account may be required to help you cover everyday living expenses until you get a paycheck again. In this situation, your goal should be to extend your savings while still meeting your current financial needs. 

Supplementing retirement income 

If you’re retired or plan to retire one day, your savings may serve as an additional income source. You may use it to fill a gap between your spending needs and investment accounts, pensions, Social Security benefits, and/or rental income. 

Taking a career break 

If you decide to pause your career to focus on your family or other obligations, for example, you may rely on your savings account to pay for your daily expenses. It’s a good idea to plan your withdrawal strategy well in advance so you can reduce the risk of overspending and extend the life of your savings. 

Funding a planned multi-year expense 

Sometimes, savings withdrawals are for large, one-time expenses, rather than everyday expenses. For example, you might want to fund a home renovation, cover your child’s education, or pay for a wedding. In this situation, you should consider both the amount you need and when you need it. 
 
Testing how long your current savings could last 

With a savings withdrawal calculator, you can experiment with different scenarios to home in on what makes the most sense for your unique situation and goals. You’ll be able to answer important questions, such as “how long will my savings last if I withdraw X amount each month?” or “how would a higher interest rate affect my timeline?” 

Common mistakes to avoid when withdrawing from savings 

It’s all too easy to make mistakes that could cause savings to run out sooner than expected or make a withdrawal plan less sustainable. Here are some mistakes to avoid: 

• Underestimating irregular expenses 

• Assuming APYs will remain unchanged 

• Failing to maintain an emergency cushion 

• Not revisiting the withdrawal plan as circumstances change 

Frequently asked questions 

Can I live off the interest from my savings without touching the principal? 

Yes, you may be able to live off the interest your savings account earns without withdrawing the principal balance. However, you’ll likely need a substantial balance and a competitive interest rate. 

What happens if I withdraw more than the interest my savings earn? 

If you withdraw more than the interest your savings account earns, you’ll begin to reduce your principal balance. This means your savings might run out sooner because less money will remain to earn interest.  

Should I include my emergency fund when calculating how long my savings will last? 

The way you plan to use your savings will determine whether you should include your emergency fund in the calculation. If your emergency fund is separate from the money you plan to withdraw, you can exclude it. Otherwise, include it. 

Is it better to withdraw a fixed amount or change withdrawals over time? 

Your unique situation will determine whether you should withdraw a fixed amount or change your withdrawal rate over time. If your expenses are predictable and you’re relying on your savings to cover them, fixed withdrawals make sense. However, if your expenses and income fluctuate, your withdrawals should too. 

Can a higher APY significantly extend how long my savings last? 

Yes, a higher APY can play a major role in extending your savings. That’s why it pays to shop around and compare APYs from different banks and institutions.  

Should I plan for my savings to last longer than I expect to need them? 

Yes, if you plan for your savings to last longer than you expect to need them, you can reduce the risk of your funds running out. You may also enjoy more flexibility and greater peace of mind in emergency or unforeseen situations.