How Long Will My Savings Last?
For any pot you are living on rather than adding to — redundancy, a career break, a sabbatical, or bridging the gap to a pension. Enter the balance and your monthly spending to see your runway.
Runway, not retirement
This is the version of the question that is not about retirement. If you have been made redundant, are taking time out, or are self-funding a course or a business, the number you want is months of runway — and the honest version uses your real spending, not your optimistic budget. Look at the last three months of actual outgoings and use that figure.
How the calculator works
Each month the balance earns one month of return, then the withdrawal is taken out. Every 12 months the withdrawal is increased by the inflation rate so your spending power stays level. If you enter a tax rate, each withdrawal is grossed up so the after-tax amount you keep matches the number you typed. The calculator stops when the balance hits zero, or after 100 years if it never does.
The "to last 20 / 25 / 30 years" figures are solved by bisection: the largest starting withdrawal that still survives that horizon under the same return and inflation assumptions.
Two adjustments worth making
- Strip out work costs. Commuting, lunches, and work clothing often fall away, which can cut spending 10–15% without any lifestyle change.
- Keep the money reachable. Anything you might spend within two years should sit in cash or short-term savings, not investments. A 20% market fall in month three of a career break is a genuine problem; the same fall in year fifteen of retirement is noise.
Common runway benchmarks
| Situation | Typical target |
|---|---|
| Emergency fund, stable job | 3–6 months of spending |
| Emergency fund, variable income | 6–12 months |
| Planned career break | Length of break + 3 months buffer |
| Bridging to a pension | Months until it starts + 6 months |
The buffer matters more than the headline. Job searches and business ramp-ups routinely take longer than planned, and running the account to zero forces bad decisions at the worst moment.
Choosing realistic inputs
- Annual return. 4–5% is a conservative planning number for a balanced portfolio; 6–7% is closer to long-run history for 60/40; cash and CDs are 3–5% today but fall when rates fall.
- Inflation. The Federal Reserve targets 2%; the 30-year U.S. average is about 2.5%. Healthcare inflation runs higher, so retirees with large medical costs should test 3–3.5%.
- Withdrawal. Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover.
Frequently asked questions
How long will $50,000 in savings last?
At $2,500 a month with 4% interest, about 21 months. At $3,500 a month it is closer to 15 months. Interest barely moves the answer over short horizons — your spending rate is what matters.
How many months of savings should I have?
Three to six months of essential spending is the standard emergency-fund target for someone with stable employment, and six to twelve months if your income is variable or your industry is volatile.
Should I keep savings in a high-yield account?
For money you may need within two years, yes — a high-yield savings account or short CD keeps it safe while earning 4%+. Money that is not needed for a decade belongs in a diversified portfolio instead.
Does the calculator include inflation?
Yes. Your monthly spending is increased by the inflation rate each year. For short runways of under a year, set inflation to 0 — it barely changes the result over that horizon.
Related calculators
SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions.