Inheritance Payout Calculator: Monthly Income From a Sum
Work out the monthly income an inheritance can provide when drawn down steadily over a chosen number of years, instead of spent in a few years or left untouched.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly income | Total drawn | Growth while drawing |
|---|---|---|---|
| $300k · 3% · 15yr | $2,071.74 | $372,914.09 | $72,914.09 |
| $100k · 2.5% · 10yr | $942.70 | $113,123.88 | $13,123.88 |
| $750k · 4% · 25yr | $3,958.78 | $1,187,632.89 | $437,632.89 |
| $50k · 3% · 5yr | $898.43 | $53,906.07 | $3,906.07 |
How This Calculator Works
Enter the inherited amount, the return you expect the balance to earn, and the years the money must last. The calculator finds the fixed monthly drawdown that exhausts the sum at the end of the period.
The Formula
Fixed-Period Drawdown
PV = savings pot, r = monthly rate (annual ÷ 12), n = number of monthly payments
Worked Example
A $300,000 inheritance earning 3%, drawn down over 15 years, supports about $2,072 a month. Over the period you withdraw roughly $372,900 — more than the inheritance, because the balance keeps earning while it pays out.
Key Insight
An inheritance taken as monthly income lasts far longer than the original sum suggests, because the unspent balance keeps earning. Choose a payout period you are comfortable with — and consider keeping a separate reserve for one-off needs.
Frequently Asked Questions
How do I decide the payout period?
Match it to a horizon that suits your goals — retirement years, until a child reaches an age, or any other window. A longer period gives a smaller monthly figure.
Does this include inheritance tax?
No. Enter the net amount you actually receive after any inheritance, estate, or probate-related tax. The figure here is pre-income-tax on the growth.
What return should I assume?
It depends on how the money is invested. A conservative portfolio is common for income drawdown; the cited treasury yield is a useful reference point.
What happens after the payout period?
The balance is fully drawn down and the income stops. To leave some of the inheritance behind, choose a shorter period or a smaller monthly amount.
Should I take it as a lump sum instead?
It depends on your needs. A drawdown plan provides steady income and protects against spending it all at once; a lump sum offers flexibility but discipline matters.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 2 independent, dated sources. The starting values for expected annual return are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
The monthly income is the fixed amount that draws the inheritance down to zero over the period, with the remaining balance earning a steady return. Inheritance tax is not modeled.
Written by Ugo Candido · Last updated May 17, 2026.