Money & shopping
Savings withdrawal scenario
See how a constant monthly withdrawal changes a starting balance.
A clear answer. Here’s how.
Converts the supplied effective annual return to an equivalent monthly rate. Applies growth, then a month-end withdrawal limited to the remaining balance. Stops at depletion or the chosen horizon. Constant-return scenario only; excludes volatility, tax, fees and inflation.
See a worked example
Worked example
A fixed demonstration, separate from the values you enter above.
- Starting balance
- 20000
- Assumed effective annual return (%)
- 3
- Month-end withdrawal
- 500
- Maximum months to model
- 120
Example result
| Month | Growth / loss | Withdrawal | Ending balance |
|---|---|---|---|
| 1 | 49.3253954461 | 500 | 19,549.3253954 |
| 2 | 48.2139102917 | 500 | 19,097.5393057 |
| 3 | 47.0996839151 | 500 | 18,644.6389897 |
| 4 | 45.9827095557 | 500 | 18,190.6216992 |
| 5 | 44.8629804362 | 500 | 17,735.4846796 |
Withdrawn over the model: 21,082.64. Constant return, month-end withdrawals; no forecast is implied.