Retirement Income Calculator: Monthly Income From a Nest Egg
Work out the monthly income a retirement nest egg can provide — and for how long, before the pot is exhausted.
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 |
|---|---|---|---|
| $800k · 5% · 25yr | $4,676.72 | $1,403,016.10 | $603,016.10 |
| $500k · 4% · 30yr | $2,387.08 | $859,347.53 | $359,347.53 |
| $1.2M · 6% · 25yr | $7,731.62 | $2,319,485.05 | $1,119,485.05 |
| $350k · 4.5% · 20yr | $2,214.27 | $531,425.48 | $181,425.48 |
How This Calculator Works
Enter your retirement savings, the return you expect the remaining balance to earn, and the number of years the money must last. The calculator finds the fixed monthly income that draws the pot down to exactly zero 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
An $800,000 pot earning 5% over a 25-year retirement supports about $4,677 a month. Across those years you draw roughly $1.4 million in total — far more than the pot, because the balance keeps earning while it is spent down.
Key Insight
Growth on the shrinking balance does heavy lifting: more than a third of the total income here comes from returns earned during retirement, not the original savings. A drawdown plan that ignores that growth badly understates the income a pot can support.
Frequently Asked Questions
How long should the payout period be?
Long enough to cover a realistic lifespan in retirement. Many planners use 25 to 30 years; outliving the period means the income stops while you do not.
What return should I assume?
A retiree's portfolio is usually more conservative than a younger one. A rate between cash and a balanced portfolio is common; a lower rate is the cautious choice.
Does this account for inflation?
No. The monthly income is a fixed nominal figure. Because prices rise, the same income buys less each year, so consider a higher pot or a shorter horizon.
What happens after the payout period?
The pot is fully drawn down and the income stops. This model deliberately depletes the savings; a plan to leave money behind needs a smaller withdrawal.
Is this the same as the 4% rule?
Related but not identical. The 4% rule is a withdrawal guideline meant to last indefinitely; this calculator finds the income for a fixed, defined period.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 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 savings pot down to zero over the period, with the remaining balance earning a steady return. Inflation and tax are not applied.
Written by Ugo Candido · Last updated May 17, 2026.