401(k) Withdrawal Calculator
The 401(k) withdrawal calculator answers two questions retirees actually ask: how long will my balance last at the rate I want to spend it, and what's a sustainable monthly withdrawal? Enter your balance, planned monthly withdrawal, expected return, and inflation. We'll project the depletion year, compare your spend to the classic 4% safe withdrawal rate, and estimate the federal tax on a year of withdrawals using 2026 IRS brackets.
Balance over time
At $4,000/month with 6% returns and 3% inflation, the portfolio runs dry in year 32.
Your withdrawal rate vs. the 4% rule
You're withdrawing at 4.80% of starting balance — above Bengen's safe rate.
How to Use This 401(k) Withdrawal Calculator
- 1Current 401(k) balance — Enter the total balance you plan to draw from. Combine multiple traditional 401(k)s and rollover IRAs if you'll spend them as one pot.
- 2Monthly withdrawal (today's dollars) — How much you plan to pull out each month at the start of retirement. The calculator grows this figure by your inflation input every year.
- 3Expected annual return — The blended return of your portfolio in retirement. A 60/40 stock/bond mix has historically returned 6–7% nominal; a more conservative 40/60 closer to 5%.
- 4Inflation rate — Long-run US inflation has averaged about 3%. Higher numbers shorten the horizon meaningfully — every percentage point matters.
- 5Other taxable income in retirement — Social Security, pension, part-time work — anything else taxed alongside the withdrawal. Lets us put your withdrawal in the right marginal bracket.
- 6Filing status — Single or married filing jointly. Determines which 2026 federal bracket table applies to your withdrawal.
How Long a 401(k) Lasts in Retirement
A 401(k) drawdown is a tug-of-war between three forces: the return your portfolio earns on what's left, the inflation-adjusted withdrawals you take out, and the taxes the IRS collects on every traditional-401(k) dollar. The calculator runs a month-by-month simulation: each month earns the expected return on the remaining balance, then you withdraw that month's spending. Once a year, the withdrawal grows by your inflation rate. We stop the clock when the balance hits zero — or at 50 years, whichever comes first.
B(t) is the balance at month t, rₘ is the monthly return ((1 + r)^(1/12) − 1), and W(t) is the monthly withdrawal — which steps up by the inflation rate every 12 months.
Start with $1,000,000, withdraw $4,000/month, earn 6% annually, and assume 3% inflation. Year 1 you spend $48,000 and your balance still ends near $1,007,000 thanks to growth. Year 20 your monthly withdrawal has grown to about $7,200 — and the balance dips below $400,000. The portfolio runs out in roughly year 31.
The 4% rule, in plain English
William Bengen's 1994 study found that a retiree who withdrew 4% of their starting balance — and adjusted that dollar figure for inflation each year — never ran out of money in any historical 30-year window. It's a useful first guess, not a guarantee. More recent research (Morningstar's 2024 update) lowered the safe rate to roughly 3.7% given today's higher equity valuations and lower bond yields.
Sequence-of-returns risk
Two retirees can earn the same average return over 30 years and end up wildly different — because the order of returns matters when you're withdrawing. A bear market in years 1–3 of retirement is far more damaging than the same drawdown in year 25. This is the single biggest reason people pad the 4% rule with a cash buffer or a bond ladder.
Traditional vs. Roth: tax treatment differs
Traditional 401(k) withdrawals are fully taxed as ordinary income. A $4,000/month withdrawal lands you in the 12% federal bracket if it's your only income, the 22% bracket once Social Security is added back. Roth 401(k) withdrawals — assuming the account is over 5 years old and you're 59½+ — are tax-free. This calculator models the traditional case.
Required Minimum Distributions (RMDs) at 73
The SECURE 2.0 Act sets the RMD start age at 73 (rising to 75 in 2033). At that point the IRS forces you to withdraw a calculated minimum from a traditional 401(k) every year, whether you need the money or not. The minimum is the prior year's December 31 balance divided by the IRS Uniform Lifetime Table factor (around 26.5 at age 73).
401(k) Withdrawal Examples by Balance and Spend
| Scenario | Inputs | Result | Note |
|---|---|---|---|
| $500K, $3,000/mo | Balance: $500,000 Withdrawal: $3,000/mo Return: 6% Inflation: 3% | ~17 years | Above the 4% safe rate ($1,667/mo). Tight without other income. |
| $1M, $4,000/mo | Balance: $1,000,000 Withdrawal: $4,000/mo Return: 6% Inflation: 3% | ~31 years | Roughly the 4% rule. Survives a full retirement in most scenarios. |
| $1.5M, $5,000/mo | Balance: $1,500,000 Withdrawal: $5,000/mo Return: 6% Inflation: 3% | 50+ years | Below 4% start. Likely grows in real terms; consider higher spending or earlier retirement. |
To see how a different savings runway changes the inputs, use our Compound Interest Calculator.
Related tools you might find useful: Compound Interest Calculator, Savings Goal Calculator, Emergency Fund Calculator.
Frequently asked questions
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Project growth with periodic compounding and optional monthly contributions.
Work backwards from a goal to the monthly deposit you need.
Set a 3–6 month expense target and track your progress.
Calculate interest on a flat-rate deposit or loan using the I = P·r·t formula.