Withdrawal Calculator: how long does your capital last?
Enter your capital, desired monthly withdrawal, an expected return, and inflation — the calculator shows the capital trajectory.
Simplified model with fixed return and inflation, not investment advice. Simulated over a 40-year horizon.
Your capital is depleted after roughly 38 years.
Monthly withdrawal: €1,800.00 in today's purchasing power, increased each year with inflation.
Duration
38 years
Capital at the end
€0.00
Total withdrawn
€1,183,298.00
What does this mean for your real wealth?
“Your capital is depleted after roughly 38 years.” — that holds for the assumptions above. Whether it looks the same with your real portfolio and your real numbers, you can see in Planafolio — for free.
Save the result in your financial planWhat does the result mean?
The result shows whether your capital lasts over the period considered when you withdraw an amount each month that rises with inflation – or in which year it runs out.
Model assumptions
- The withdrawal rises each year with the assumed inflation. It is taken out at the start of each year; the rest grows at the return rate.
- The return stays constant for the whole period. Real markets fluctuate; losing years are not part of the model.
- The time horizon is fixed in the calculator.
- Taxes on returns (German flat tax, advance lump sum) are not deducted.
- Fund costs, order fees and spreads are not deducted.
How the calculator works
Annual steps: the year's withdrawal is taken out at the start of the year, and the rest grows at the assumed return. The withdrawal rises by the inflation rate every year.
More on the methodologyWorked example
Example: how long does the capital last with a fixed withdrawal?
Worked example using the calculator's default values above: a starting capital and a monthly withdrawal in today's purchasing power that rises with inflation every year.
Inputs
- Starting capital€500,000
- Monthly withdrawal (today's purchasing power)€1,800
- Annual return (assumption)5%
- Annual inflation (assumption)2%
- Period considered40 years
Calculation
| Withdrawal in year 1 | €21,600 |
|---|---|
| Withdrawal in year 38 (inflation-adjusted) | €44,943 |
| Total withdrawn | €1,183,298 |
Result
| Capital runs out in year | 38 |
|---|
Because the withdrawal rises with inflation every year, the capital runs out in year 38. The tables below show how much longer it lasts with a slightly lower withdrawal.
Return (5%) and inflation (2%) are assumptions, the same defaults as in the calculator above, not a forecast. Taxes are not included.
Worked example
How much the withdrawal rate really matters
Same starting capital, same return and inflation — only the withdrawal rate changes. Every value computed with the exact same formula as the calculator above.
Assumptions: €500,000.00 starting capital, 5% return p.a., 2% inflation p.a., 40-year horizon.
| Withdrawal rate | Monthly | Outcome after 40 years |
|---|---|---|
| 3.5% | €1,458.33 | lasts, €560,426.00 left |
| 4% | €1,666.67 | lasts, €137,630.00 left |
| 4.3% | €1,800.00 | depleted after 38 years |
| 6% | €2,500.00 | depleted after 23 years |
The best-known rule of thumb behind this is the 4% rule — more on that in the glossary. Withdrawal rate & the 4% rule in the glossary · How is this calculated?
Fixed withdrawal instead of a rate
How long does €500,000 last at a fixed monthly withdrawal?
€500,000.00 starting capital, 5% return p.a., 2% inflation p.a. — only the monthly withdrawal changes.
| Monthly withdrawal | Outcome after 40 years |
|---|---|
| €1,500.00 | lasts, €475,866.00 left |
| €2,000.00 | depleted after 32 years |
| €2,500.00 | depleted after 23 years |
| €3,000.00 | depleted after 18 years |
What if returns turn out worse?
Same withdrawal, weaker returns
€500,000.00 starting capital, €1,800.00 monthly withdrawal — only the return drops from the calculator's default.
| Return p.a. | Outcome after 40 years |
|---|---|
| 5% | depleted after 38 years |
| 3% | depleted after 27 years |
| 1% | depleted after 21 years |
Turned around
How much capital do you need for your target withdrawal?
Starting capital needed so the withdrawal lasts 40 years at 5% return and 2% inflation without running out.
| Desired withdrawal | Required capital |
|---|---|
| €1,500.00 | €432,000.00 |
| €2,000.00 | €577,000.00 |
| €2,500.00 | €721,000.00 |
| €3,000.00 | €865,000.00 |
Rounded to the nearest €1,000, found by simulation (no closed-form formula) — same fixed-return/fixed-inflation assumption as the calculator above.
Sources and status
Content reviewed on September 29, 2026.
- Statistisches Bundesamt – Verbraucherpreisindex für Deutschland
- § 20 EStG – Einkünfte aus Kapitalvermögen (im Rechner nicht versteuert)
The calculation is a simplified model under the stated assumptions and is not investment or tax advice.
What can I do?
Poor market years early in retirement weigh more than later ones – a model with a constant return does not show that. So try more cautious return assumptions in your financial plan.
How it works
The withdrawal plan in detail
What determines how long your capital lasts.
Withdrawal vs. return
As long as the return roughly offsets the withdrawal, capital stays stable — if withdrawals permanently exceed returns, capital declines.
Accounting for inflation
To keep your purchasing power constant over the years, the simulated withdrawal grows each year with the inflation rate.
The time horizon matters
A longer retirement or a higher withdrawal both raise the risk of running out of capital early — try different values.
Frequently asked
Questions about the withdrawal calculator
A withdrawal plan describes regularly taking money out of a capital pool while the rest stays invested and keeps earning returns.
That depends on your capital, your monthly withdrawal, the expected return, and inflation — enter exactly these four values in the calculator above. As a rule of thumb: at around a 4% withdrawal rate in year one, adjusted only for inflation afterwards, historical US backtests often show the capital lasting over 30 years; at higher rates it runs out noticeably faster, as the example table above shows.
The 4% rule is a rule of thumb for the withdrawal phase: if you withdraw 4% of your portfolio in the first year and only adjust the withdrawal for inflation afterwards, a historical backtest (the Trinity Study, 1998, US stocks and bonds from 1926) found the capital would have lasted in most 30-year periods — depending on the stock share and the period. Past paths say nothing certain about the future; results can differ markedly for other markets, horizons and costs. It's a rough guide, not a guarantee — try different rates above for your own situation.
Poor returns early in the withdrawal phase hurt more than later ones — this calculator uses a constant return, so it only captures this risk in a simplified way.
To keep your purchasing power constant: €1,800 today is worth only about €1,200 in 20 years at 2% inflation. The calculator raises the withdrawal by the inflation rate each year, so you have the same real spending power every month.
There is no guaranteed-safe rate — only rules of thumb that rarely failed in historical simulations. The best known is the 4% rule; the glossary entry explains where it comes from and its limits.
The calculator assumes constant return and inflation and doesn't account for taxes or market swings — it's a rough guide, not financial advice.
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