Planning & projections
Turn a retirement balance into a monthly paycheck estimate
A retirement income calculator that converts savings into a level monthly and annual income over the years a client chooses, at the return they assume, so the decumulation conversation starts with a number.
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How much monthly income will my retirement savings provide?
Treat the balance like a loan you pay to yourself: at an assumed annual return, find the level payment that draws the balance to zero over the chosen number of years. $500,000 earning 5% over 25 years supports roughly $2,900 a month before taxes. Higher returns or fewer years raise the payment.
The year before retirement, often mid-year
Savers think in balances; retirees live on income. In the twelve months before a retirement date, clients want to turn the number on their statement into a monthly figure they can compare with their budget. Many search after a pension or Social Security estimate arrives and they want to fill the gap.
What the client types into a search box
“how much can I spend each month from my 401k in retirement”
How a client works through it
Enter retirement savings
The combined balance available for income.
Choose an annual return
The return the client assumes during retirement.
Pick years of income
How long the income should last.
See monthly and annual income
Level income per month and year, and the total paid over retirement.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
The savings balance and years of income show assets and planning horizon. A short horizon or a high assumed return suggests a client who may run out early. A large balance with no stated plan is an advisory opportunity, and the monthly figure tells you whether their budget is realistic.
What does a level monthly income assume?
Monthly Income and Annual Income are level payments that use up the balance exactly at the end of Years of Income. Total Income Over Retirement exceeds Retirement Savings because the remaining balance keeps earning the assumed return.
Level means not inflation-adjusted. In year 20 the same payment buys less than in year 1, which is why the savings-duration calculator, with rising withdrawals, is a useful second step.
Results shown: Monthly Income · Annual Income · Total Income Over Retirement · Retirement Savings · Years of Income.
Why is decumulation the conversation firms want?
The years around retirement involve the most consequential tax and investment decisions a household makes: withdrawal order, Roth conversions, Social Security timing and RMD planning. A prospect who has just converted a balance into a monthly income is ready for that conversation.
For CPA firms, the request flags a client whose taxable income is about to change shape, from wages to withdrawals, which affects estimated payments and brackets.
Follow-ups this request opens
- Design a tax-aware withdrawal sequence across accounts
- Coordinate the income plan with Social Security timing
- Set up withholding or estimated payments on withdrawals
- Stress-test the plan with lower returns and longer life
What this calculator leaves out
- Payments do not rise with inflation.
- Taxes on withdrawals are not deducted.
- Assumes a constant return; poor early returns would shorten the period.
- Social Security and pensions are not included.
Platform disclaimer shown under the calculator: Estimates only. Assumes a constant return and a level payment that draws the balance to zero over the period; taxes and inflation adjustments are not included.
Compliance note for firms
Income illustrations based on an assumed return can be hypothetical performance when an adviser presents them. Keep the assumption visible and client-controlled, explain the method and its limits, and review the default return with your CCO. CPAs advising on withdrawal amounts should consider taxes, which this estimate omits.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Level monthly income
- A fixed payment drawn each month that, at the assumed return, brings the balance to exactly zero at the end of the chosen period. It uses the same annuity formula as a loan payment, run in reverse. The payment does not rise with inflation, so its purchasing power shrinks over a long retirement.
- Annual return
- The average yearly growth assumed on the balance still invested while you draw income. A higher return supports a larger monthly income from the same savings. The calculator holds it constant; real returns vary from year to year, and poor returns early in retirement can shorten how long the money lasts even when the long-run average looks fine.
- Years of income
- The number of years the savings must fund. A longer period spreads the balance over more payments and lowers the monthly income; a shorter one raises it but risks running out if you live longer. Many planners test a horizon well past average life expectancy, because running short late in life is harder to fix than spending a little less early.
- Drawdown
- Spending both the earnings and the principal of your savings so the balance reaches zero at a chosen date. It produces more income than living on the returns alone, but it leaves nothing if you outlive the years chosen. This calculator assumes a full drawdown, so the monthly income shown leaves no remaining balance for later years or heirs.
- Inflation
- The general rise in prices, which reduces what a fixed dollar amount can buy. The income in this calculator is level and not adjusted for inflation, so the same monthly figure will cover less in later years. As an illustration, at 3% annual inflation prices roughly double in about 24 years.
- Sequence-of-returns risk
- The risk that losses arrive early in retirement, while withdrawals are also shrinking the balance. Two portfolios with the same average return can last very different lengths of time depending on the order of good and bad years. A constant-return model like this one cannot show that risk, so treat its result as an estimate for a steady average.
In our glossary: Present value · Real return
Retirement Income calculator: questions from firms and clients
Does the income adjust for inflation?
No, it is a level payment. For withdrawals that rise with inflation, use the savings-duration calculator.
Is this the 4% rule?
No. The 4% rule sets a first-year withdrawal and raises it with inflation. This calculator finds the level payment that uses up the balance over a fixed period.
Are taxes included?
No. Withdrawals from pre-tax accounts are taxable income, so after-tax income will be lower.
What return should a retiree assume?
One consistent with their actual investment mix, usually lower than in their saving years. The calculator lets them test several.
Does the balance last forever?
No. By design it reaches zero at the end of the period. Clients worried about outliving savings should test longer periods.
Should Social Security be included?
Add it separately. This calculator converts savings only.
Is the result advice?
No, it is an estimate from the client's own assumptions.
Which plan includes it?
Network. See pricing.
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