Starlight Tools
Savings Withdrawal Calculator
Your assumptions
Estimated result
The balance funds 71 full monthly withdrawals. In month 72, only £254 is available toward the scheduled £1,656.
Constant 4% annual return, 2% annual withdrawal increase, beginning-of-month withdrawals. Gross before tax and fees.
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Annual balance schedule
| Year | Opening balance | Withdrawn | Return earned | Closing balance |
|---|
Method, formulas and assumptions
Monthly return
The calculator uses an effective monthly rate equivalent to the annual return. It then adds or subtracts that return from the remaining balance once per month.
Growing withdrawals
The monthly amount stays level for 12 withdrawals, then rises by the selected annual percentage. In income mode, a binary search finds the highest starting amount that funds every month of the selected term.
Worked example: with £100,000, a £1,500 starting monthly withdrawal, 4% annual return and a 2% annual increase, the calculator applies each withdrawal and the equivalent monthly return in order until the next scheduled amount cannot be paid in full.
Last updated: 31 July 2026. Formula reference: the Investor.gov compound interest calculator also models an initial balance, regular withdrawals and an estimated annual rate. Risk context: MoneyHelper's beginner's guide to investing.
Savings withdrawal calculator FAQs
How long will my savings last with monthly withdrawals?
The duration depends on your starting balance, monthly amount, return, annual withdrawal increase and timing. The calculator counts full scheduled withdrawals and identifies a final partial month if the available balance is insufficient.
How does interest affect savings withdrawals?
Positive returns can extend the life of the balance because the remaining money continues to compound. Negative returns shorten it. A fixed return is only an assumption; actual rates and investment performance change.
Can the monthly withdrawal rise with inflation?
Yes. Use the annual withdrawal increase to raise the monthly amount after each 12-month block. It can approximate a spending increase, but it is not an inflation forecast.
Why does withdrawal timing matter?
Beginning-of-month withdrawals are removed before that month's return. End-of-month withdrawals allow the money to earn or lose the month's return first.
Does this include tax, fees or changing rates?
No. All figures are gross before tax and fees, and the model uses one constant annual return. Subtract expected fees from the return as a rough stress test, but check product-specific terms separately.
Is the supported monthly income guaranteed?
No. It is the highest starting withdrawal that fits the selected term under these fixed assumptions. A variable or unexpectedly low return can materially reduce real-world longevity.