MCPCalc

Retirement Income Calculator

Plan retirement withdrawals with inflation adjustment to see how long your savings will last.

Scratchpad (not saved)

$

Total value of your retirement savings

$

Desired annual withdrawal amount (first year)

%

Expected annual investment return

%

Expected annual inflation rate

$

Annual income from Social Security or pensions

What This Calculator Does

Model retirement income sustainability by combining starting assets, expected return, inflation, and annual spending targets.

It combines Retirement Portfolio, Annual Withdrawal, Expected Annual Return, Inflation Rate to estimate Portfolio Lasts, Initial Withdrawal Rate, Total Withdrawn.

Formula & Method

Core equations: Each year the portfolio is reduced by inflation-adjusted withdrawals and grown by investment returns: B_{t+1} = (B_t - W_t + SS) \times (1 + r) W_{t+1} = W_t \times (1 + i) where W_t is the annual withdrawal, SS is Social Security income, r is the return rate, and i is the inflation rate. The withdrawal rate is W_0 / B_0. Inputs are applied in base units, then derived metrics are computed from the same equations and rounded for display.

Notation used in the formulas: R = Portfolio Lasts; x_{1} = Retirement Portfolio; x_{2} = Annual Withdrawal; x_{3} = Expected Annual Return; x_{4} = Inflation Rate; x_{5} = Social Security / Pension (Annual).

Method summary: inputs are normalized to consistent units, core equations are evaluated, then secondary values are derived and rounded for display.

Use this for pre-retirement planning and to test how spending levels influence portfolio longevity.

Inputs Used

  • Retirement Portfolio: Total value of your retirement savings
  • Annual Withdrawal: Desired annual withdrawal amount (first year)
  • Expected Annual Return: Expected annual investment return
  • Inflation Rate: Expected annual inflation rate
  • Social Security / Pension (Annual): Annual income from Social Security or pensions

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