Drawdown Calculator
Find out how long your retirement portfolio will last — year by year.
What is a drawdown calculator?
A drawdown calculator shows you how your retirement portfolio shrinks over time as you make regular withdrawals. It accounts for investment growth and inflation to give you a realistic picture of how long your money will last.
Why does inflation matter?
Inflation increases your cost of living each year. A fixed withdrawal of $40,000 today will need to be $53,000 in 10 years at 3% inflation just to maintain the same purchasing power. This calculator adjusts your withdrawal upward each year to reflect this.
FAQ
What return rate should I use?
Enter a nominal return, before inflation, because this calculator raises your withdrawal by the inflation rate each year. Our default is 8%: a 5% real return plus 3% inflation. World equities returned 5.2% real since 1900 (Dimson-Marsh-Staunton), which is why we use 5% rather than the usual 7%.
My portfolio depletes — what can I do?
Reduce your annual withdrawal, increase your starting balance, or lower your expected inflation rate. Even a 10% reduction in withdrawals can add many years to your portfolio.
How is this different from the 4% rule?
The 4% rule is a guideline. This calculator lets you stress-test any combination of withdrawal rate, return, and inflation specific to your situation.