Regular Withdrawals, Advanced Calculator
Initial Value =
Years = 20
Withdrawal Timing = 12
Withdrawal Amount =
Future Value =
Begin Period = 1
End Period = 1
Interest Paid = 0
Principal Paid = 0
Payment Paid = 0
End Balance = 0
Amortization Table =
- ++Validations++: not available, removed 'if(years<=0;"Years must be > 0";"")'
Calculate the value of an account or net worth when taking regular withdrawals. This calculation is important for retirees living on a fixed income.
- Initial Value: Initial value of the account (i.e., the amount in savings).
- Years: Number of years of withdrawals.
- Withdrawal Timing: How often the withdrawals occur. Options include Bi-Weekly (payments every two weeks; 26 payments per year); 2x/Month (payments on 15th and 30th); 24 payments per year); Monthly (12 per year); Quarterly (4 per year); 2x/Year (2 per year); Yearly (1 per year). Payments are always made at the end of the period.
- Interest/Year: Average, annual interest rate earned on the remaining funds, expressed as a percentage.
- Withdrawal Amount: Amount withdrawn at each withdrawal period as indicated by Withdrawal Timing. It is assumed that withdrawals occur at the beginning of each month.
- Future Value: Value of account after withdrawals.
- Begin Period: Starting period to calculate the amortization information.
- End Period: Ending period to calculate the amortization information.
- Interest Paid: Total interest paid over the amortization period.
- Principal Paid: Total principal paid over the amortization period.
- Payment Paid: Total payments made over the amortization period.
- End Balance: Balance at the end of the amortization period.
Amortizations always round to 2 decimal places.
A client is set to retire and wants to maintain his current lifestyle. If the client has saved $6 million, how many years could the client live while withdrawing $100,000 per quarter and still maintaining $1 million for his children's inheritance?
- Initial Value: $6,000,000.00
- Withdrawal Timing: Quarterly
- Interest/Year: 5.000%
- Withdrawal Amount: $100,000.00
- Future Value: $1,000,000.00
Select ? on Years row. The money will last 25.3 years when $100,000 is withdrawn each quarter.