Why does withdrawal timing change the result?

A beginning-of-month withdrawal leaves less money earning a return during that month. An end-of-month withdrawal applies the monthly return first. The difference grows over long periods.

Does the calculator include tax, fees or changing rates?

No. Results are gross, before tax and fees, and use one constant annual return. Actual savings rates and investment returns can change, and investments can lose value.

Savings Withdrawal Calculator

Find how long a balance may last with regular monthly withdrawals, or calculate the starting monthly income it can support for a fixed term. Everything runs locally in your browser; inputs are not uploaded or stored by this page.

Your assumptions

What do you want to calculate?

How long savings last

Monthly income for a term

Currency

Starting savings (£)

Money available before the first withdrawal.

Starting monthly withdrawal (£)

The amount requested in month one.

Annual return (%)

A constant effective annual rate, before tax and fees.

Annual withdrawal increase (%)

Applied after every 12 monthly withdrawals.

Withdrawal timing

Beginning-of-month withdrawals leave less money earning that month's return.

Estimated result

Estimated balance longevity 5 years 11 months

Starting monthly withdrawal £1,500

Full monthly withdrawals 71

Total withdrawn £112,144

Return earned £12,144

Final scheduled monthly amount £1,656

Ending balance £0

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.

Annual balance schedule

Each row groups up to 12 monthly calculations. The last row may be a partial year if the balance cannot fund the next full withdrawal.

Year-by-year savings withdrawal schedule
Year	Opening balance	Withdrawn	Return earned	Closing balance

Method, formulas and assumptions

Monthly return

monthly rate = (1 + annual return)^1/12 − 1

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

withdrawal in month m = initial withdrawal × (1 + annual increase)^{floor((m − 1) / 12)}

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.

Important: this is a fixed-return illustration, not financial advice. It does not model tax, fees, rate changes, market volatility, inflation beyond the withdrawal increase, deposit protection limits or account withdrawal restrictions. Investment returns are not smooth or guaranteed and capital can fall. Compare several conservative assumptions before making decisions.

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.

Savings Withdrawal Calculator

Your assumptions

Estimated result

Annual balance schedule

Method, formulas and assumptions

Monthly return

Growing withdrawals

Savings withdrawal calculator FAQs

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