Savings Withdrawal Calculator
Plan savings withdrawals -- see how long money lasts, max monthly withdrawal, or remaining balance. Free online calculator with charts and monthly breakdowns.
About This Calculator
The Savings Withdrawal Calculator helps you plan systematic withdrawals from your savings, whether for retirement, a major purchase, or any long-term financial goal. Unlike a simple savings calculator that shows growth, this tool answers the critical question: how long will my money last if I withdraw a fixed amount each month?
The calculator supports three planning modes: How long will my money last? -- given your balance and monthly withdrawal, see exactly when savings run out; How much can I withdraw? -- find the maximum monthly withdrawal for a target period; How much will remain? -- check the ending balance after withdrawing a fixed amount for a set number of years. All calculations use the standard annuity formula with monthly compounding.
Regional Notes
India (IN): Savings account interest rates range from 2.7% to 4.0% per annum. For retirement planning using EPF/PPF, use current EPF rate of 8.15% or PPF rate of 7.1%. Senior citizens often get 0.5% higher rates on fixed deposits.
United States (US): High-yield savings accounts offer 3.5% to 5.0% APY as of 2025-26. For retirement accounts (401k, IRA), use a conservative 4-6% expected annual return. The 4% rule is a common withdrawal guideline for retirement portfolios.
United Kingdom (UK): Easy-access savings accounts offer around 2.5% to 4.0% AER. Cash ISAs provide tax-free interest up to £20,000 per year. For pension drawdown, typical withdrawal rates are 3-5% annually.
Frequently Asked Questions
How long will my savings last with monthly withdrawals?
The calculator uses the annuity formula to determine how many months your savings last. Given your savings balance, monthly withdrawal amount, and annual interest rate, it computes the number of months until the balance reaches zero. The formula accounts for interest earned on the remaining balance each month, extending the duration compared to simple division.
How is the maximum monthly withdrawal calculated?
The maximum monthly withdrawal is calculated using the present value of an annuity formula: PMT = PV x r / (1 - (1 + r)^(-n)), where PV is your savings balance, r is the monthly interest rate, and n is the number of months. This ensures you withdraw the highest possible amount without depleting savings before the end of your chosen period.
What happens if my withdrawal exceeds the interest earned each month?
If your monthly withdrawal exceeds the monthly interest earned, your savings balance will decrease over time. Each month, interest is first added to the balance, then the withdrawal is subtracted. This means your principal gradually depletes. The calculator shows the exact month-by-month breakdown so you can see exactly when your savings will run out.
Can I withdraw more than my savings balance?
No, the calculator stops withdrawals once the balance reaches zero. In 'How long will my money last?' mode, the last withdrawal may be less than the full amount if the remaining balance plus interest is insufficient. This realistic approach ensures accurate planning and prevents overestimating how long your savings will last.
What interest rate should I use for savings withdrawal planning?
Use the annual percentage yield (APY) or average annual return your savings account or investment generates. For India, savings accounts offer 2.7-4.0% interest. For US high-yield savings accounts, rates are typically 3.5-5.0% APY. For UK easy-access accounts, rates are around 2.5-4.0%. For retirement portfolios, use a conservative 4-6% expected annual return.
Is this savings withdrawal calculator free to use?
Yes, this calculator is completely free to use with no registration or account required. You can calculate as many scenarios as you like, share results via URL, and use it for personal financial planning. There are no hidden fees, limits on calculations, or premium features.
What is the difference between saving and withdrawing with interest?
When you save with interest, your money grows as interest compounds over time. When you withdraw with interest, you are taking money out while the remaining balance continues to earn interest. The key difference is direction: saving increases your balance, while systematic withdrawals decrease it. Interest helps slow the depletion, making your savings last longer.
How does compounding frequency affect withdrawal planning?
This calculator uses monthly compounding, which is the most common for savings accounts. More frequent compounding (daily) would slightly increase the interest earned, extending how long savings last. Less frequent compounding (quarterly or annually) would reduce interest earnings slightly. Monthly compounding provides a realistic middle ground for most savings and retirement accounts.