Personal money · 301

Retirement income runway

How long can retirement savings support the income gap you expect?

Your numbers

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Quick answer

What does the Retirement income runway calculate?

How long can retirement savings support the income gap you expect? This calculator uses retirement savings, monthly spending, monthly pension or other income, and annual return after fees to estimate savings withdrawal runway immediately in your browser.

With the values currently entered, the result is 47y 7mestimated savings runway. It also shows monthly spending gap, first-year drawdown, and balance after 10 years.

How to use the Retirement income runway

  1. Replace the example values with your own numbers.
  2. Review the result and supporting figures as they update automatically.
  3. Check the formula and assumptions before using the estimate for a decision.

Inputs used

  • Retirement savings
  • Monthly spending
  • Monthly pension or other income
  • Annual return after fees — entered in %

Retirement income runway formula

Each month: balance × (1 + annual return ÷ 12) − spending gap

Assumptions

  • Spending, other income, and return stay constant before inflation.
  • Withdrawals happen at the end of each month and taxes are excluded.

Verify the inputs

Authoritative sources

These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.

Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.

Practical guide

Retirement income runway example and edge cases

How long can retirement savings support the income gap you expect? Let's use a concrete example, then look at the assumptions that can move the answer.

Example: A practical retirement income runway scenario

For this example, use retirement savings of 500,000, monthly spending of 4,000, monthly pension or other income of 2,200, and annual return after fees of 3.5 %. These are starting values, so replace them with numbers that match your situation.

Retirement savings
500,000
Monthly spending
4,000
Monthly pension or other income
2,200
Annual return after fees
3.5 %

Calculated result47y 7mestimated savings runway

Start with estimated savings runway. Then check monthly spending gap, first-year drawdown, and balance after 10 years to understand what sits behind the main result.

Example results use the default display profile. The calculator above follows your selected country and units.

How to read the result

  • Read the main result first. The supporting figures for monthly spending gap, first-year drawdown, and balance after 10 years explain how the estimate is built.
  • The method is Each month: balance × (1 + annual return ÷ 12) − spending gap. Keep the units consistent and use values from the same time period.

Edge cases worth checking

When retirement savings is unusual

Spending, other income, and return stay constant before inflation. Double-check this input before relying on the result.

When annual return after fees is uncertain

Withdrawals happen at the end of each month and taxes are excluded. Run a lower and higher value to see a useful range.

What changes the result most

Retirement savings

Use a current amount for retirement savings. Include fees or recurring costs that belong in the same figure.

Monthly spending

Use a current amount for monthly spending. Include fees or recurring costs that belong in the same figure.

Monthly pension or other income

Use a current amount for monthly pension or other income. Include fees or recurring costs that belong in the same figure.

Try a different scenario

Small changes show whether the answer is stable or sensitive.

Retirement savings: 10% lower

450,000

37y 5mestimated savings runway

Retirement savings: 10% higher

550,000

63y 6mestimated savings runway

Monthly spending: 10% higher

4,400

31y 2mestimated savings runway

Common mistakes

Check retirement savings

Spending, other income, and return stay constant before inflation. Make sure this matches the number you enter.

Keep annual return after fees consistent

Withdrawals happen at the end of each month and taxes are excluded. Use the same units and time period throughout the calculation.

Do not rely on one retirement income runway scenario

Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.

Use this result well

Use it for

How long can retirement savings support the income gap you expect?

Do not use it as

It is a planning estimate, not a forecast or personal financial advice.