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.
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.
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
The monthly withdrawal is the level amount that draws the IRA balance to zero over the period, with the remaining balance earning a steady return. It is a fixed-payment drawdown; it does not model taxes on withdrawals, required minimum distributions, or inflation adjustments.
Written by Ugo Candido · Last updated May 22, 2026.