IRA Monthly Withdrawal Calculator: Monthly Income From Your IRA
Work out the level monthly withdrawal an IRA can provide over a chosen number of years — the amount that exhausts the balance by the end of the period while the remaining money keeps earning a return.
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 · 5% · 25yr | $1,753.77 | $526,131.04 | $226,131.04 |
| $500k · 6% · 30yr | $2,997.75 | $1,079,190.95 | $579,190.95 |
| $150k · 4% · 20yr | $908.97 | $218,152.92 | $68,152.92 |
| $1M · 5% · 30yr | $5,368.22 | $1,932,557.84 | $932,557.84 |
How This Calculator Works
Enter your IRA balance, the return you expect the balance to earn during retirement, and how many years you want the income to last. The calculator finds the fixed monthly withdrawal that draws the balance to zero over that period, with the unspent balance still earning.
The Formula
Fixed-Period Drawdown
PV = savings pot, r = monthly rate (annual ÷ 12), n = number of monthly payments
Worked Example
A $300,000 IRA earning 5%, drawn down over 25 years, provides about $1,754 a month — roughly $526,000 in total withdrawals, far more than the starting balance because the unspent money keeps earning. Two big caveats this doesn't model: withdrawals from a traditional IRA are taxed as ordinary income, and required minimum distributions (RMDs) force a minimum withdrawal once you reach the RMD age, which can override a smaller planned amount.
Key Insight
A fixed-period drawdown is a clear way to size IRA income, but real retirement planning has moving parts this simplifies. Taxes matter enormously: traditional IRA withdrawals are ordinary income, so a $1,754 monthly withdrawal is a pre-tax figure — your spendable amount is less. Roth IRA withdrawals, by contrast, are generally tax-free. Sequence-of-returns risk is the other danger: a market drop early in retirement, while you're withdrawing, can permanently shrink the balance in a way a steady-return model misses. Many retirees use a percentage-based rule (like the 4% guideline) precisely to flex spending with the portfolio rather than committing to a fixed dollar drawdown. Use this figure as a planning baseline, then layer in taxes, RMDs, and a margin for bad early years.
Traditional vs Roth IRA withdrawal differences
Traditional IRA withdrawals: taxed as ordinary income. Federal bracket 10-37% + state tax. RMDs required at age 73+. Each $1 of withdrawal worth ~$0.65-$0.80 after taxes for typical retirees.
Roth IRA withdrawals: tax-free for qualified distributions (account 5+ years old + age 59½+). No RMDs during owner's lifetime. Each $1 of withdrawal worth $1.00 — full purchasing power.
Implication for retirement income strategy: $300K Traditional IRA provides ~$200K-$240K after-tax purchasing power over retirement. $300K Roth IRA provides full $300K. Roth IRA is structurally more valuable per dollar for retirement spending.
Optimal withdrawal sequencing in retirement. Most tax-efficient typically: (1) Required Minimum Distributions first (mandatory); (2) Taxable account next (long-term capital gains lower than ordinary income); (3) Traditional IRA/401k (ordinary income); (4) Roth IRA last (tax-free; preserve for unexpected needs or legacy). Software like Fidelity Retirement Income Planner can optimize this sequencing for individual circumstances.
Sustainable withdrawal vs RMD
4% SWR and RMD percentages differ. 4% SWR: $40K/year on $1M portfolio. RMD at age 73: ~3.77% ($37.7K). At age 80: ~4.95%. At age 85: ~6.25%. Below age 73: no RMD requirement; 4% SWR is voluntary withdrawal rate.
Initial RMD percentage at 73 is BELOW 4% — sustainable from portfolio's perspective. As account holder ages, RMD percentage exceeds SWR — portfolio may be drawn down faster than ideal but still consistent with retirement period.
For pre-RMD-age retirees (60-72): use SWR-based withdrawal. After age 73: RMD becomes mandatory minimum; can withdraw more if needed but not less.
Spending discipline: many retirees withdraw RMD then save excess that wasn't needed. This is tax-inefficient (paid tax on withdrawal then earns taxable income on saved amount). Better to coordinate withdrawal with actual spending needs — but RMD must be taken regardless of spending.
IRA monthly income — sustainable withdrawal scenarios
Reference monthly withdrawal at 4% SWR by IRA balance.
| IRA balance | Annual 4% SWR | Monthly income | After 24% federal tax (Traditional) |
|---|---|---|---|
| $250K | $10K | $833 | $633 |
| $500K | $20K | $1,667 | $1,267 |
| $750K | $30K | $2,500 | $1,900 |
| $1M | $40K | $3,333 | $2,533 |
| $1.5M | $60K | $5,000 | $3,800 |
| $2M | $80K | $6,667 | $5,067 |
| $3M | $120K | $10,000 | $7,600 |
Traditional IRA shows pre-tax and after-federal-tax monthly income (24% bracket assumed). Roth IRA at same balance provides 100% of pre-tax amount — significantly more purchasing power per dollar of balance. For retirement planning, prefer Roth allocation when possible; combine with traditional and taxable for tax-efficient withdrawal sequencing.
Frequently Asked Questions
How is the IRA monthly withdrawal calculated?
It's the fixed monthly amount that draws the balance to zero over the chosen years while the remaining balance earns the expected return — the standard annuity-payout (amortization) formula. A $300,000 balance at 5% over 25 years gives about $1,754 a month.
Are IRA withdrawals taxed?
Traditional IRA withdrawals are taxed as ordinary income, so the figure here is pre-tax — your spendable amount is lower. Roth IRA withdrawals are generally tax-free in retirement if rules are met. Factor your tax rate in when planning how much you actually get to spend.
What are required minimum distributions (RMDs)?
Once you reach the RMD age (currently 73 for many, rising to 75 later), the IRS requires a minimum annual withdrawal from traditional IRAs whether you need it or not. If your RMD exceeds your planned monthly drawdown, you must take the larger amount. Roth IRAs have no RMDs for the original owner.
Is a fixed drawdown the safest strategy?
Not necessarily. A fixed dollar withdrawal ignores sequence-of-returns risk — a bad market early in retirement can deplete the balance faster than a steady-return model shows. Many retirees prefer a percentage-based approach (like the 4% rule) that flexes spending with the portfolio's actual value.
Why is total income more than the balance?
Because the unspent balance keeps earning while it pays out. A $300,000 IRA at 5% over 25 years pays out about $526,000 total — the extra roughly $226,000 is the compounding on the money that hasn't been withdrawn yet.
When is this calculator unreliable?
As long-term sustainability guarantee — 4% SWR assumes constant returns; sequence-of-returns risk in early retirement years can permanently damage portfolio. For honest planning, model conservative (3% SWR) and base case scenarios. Also unreliable when not differentiating Traditional vs Roth (Traditional withdrawals taxed as ordinary income reducing purchasing power 20-35%; Roth withdrawals tax-free).
References & Authoritative Sources
- Internal Revenue Service (IRS) — IRA Distributions and RMDs · consulted June 1, 2026 · Federal regulator on IRA withdrawals
- U.S. Securities and Exchange Commission (SEC) — Retirement Income Planning · consulted June 1, 2026 · Federal investor guidance on retirement income
- Bengen — Original SWR Study — Determining Withdrawal Rates · consulted June 1, 2026 · Original 4% SWR research
Related Calculators
Data Sources & Benchmarks
This calculator draws on 1 independent, dated source. The starting values for expected annual return are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
IRA monthly withdrawal calculates sustainable monthly income from IRA balance using SWR framework. The calculator returns monthly withdrawal. Annual withdrawal = balance × SWR (typically 4% for traditional 30-year retirement). Monthly = annual / 12. For $500K IRA at 4% SWR: $20K annual / $1,667 monthly. Required Minimum Distributions (RMDs) start at age 73 (SECURE 2.0). Withdrawals from Traditional IRA taxed as ordinary income; from Roth IRA tax-free (qualified distributions). RELIABILITY: Reliable for direct sustainability calculation. Less reliable as actual income guidance because (a) market volatility affects actual sustainable withdrawal; (b) sequence-of-returns risk dominates early retirement outcomes; (c) inflation requires withdrawal adjustments; (d) life events may require flexibility.
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