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How much income can my portfolio generate?

Estimate sustainable income from your investment portfolio using different withdrawal strategies. Plan for retirement or financial independence.

What This Calculator Is

A portfolio income calculator projects sustainable withdrawals from your investment portfolio over time. It models the interplay between your withdrawal rate, portfolio returns, and inflation to show whether your money will last. This is essential retirement planning—determining if you can maintain your lifestyle without running out of money.

Who This Calculator Is For

Retirees planning withdrawal strategies, pre-retirees determining if they've saved enough, and financial independence seekers calculating their 'number.' Estate planners use it to balance spending with legacy goals, while early retirees use it to stress-test decades-long retirement periods.

When to Use This Calculator

Use this calculator when planning retirement income, testing different withdrawal rates (the classic 4% rule), evaluating whether you can retire early, or adjusting spending plans based on market performance. Run new scenarios whenever your portfolio value, expected returns, or spending needs change significantly.

Inputs

$500,000.00
4.000%
6.000%
2.500%
30

Results

Annual Income

$20,000.00

Monthly Income$1,666.67
Portfolio After 30 Years$788,360.68
Success Probability90.000%

Past performance does not guarantee future results. All investments carry risk.

Insights

Sustainable income

Your portfolio can provide $20,000.00 annually at a 4% withdrawal rate.

Sustainability check

Your withdrawal rate appears sustainable for the long term.

How Portfolio Income Is Calculated

The calculator applies your withdrawal rate to project annual income, then simulates portfolio growth and drawdown over your specified period. It factors in investment returns and inflation to show if your plan is sustainable.

annualIncome = portfolioValue * (withdrawalRate/100)
monthlyIncome = annualIncome / 12
Simulate for each year: portfolio = portfolio*(1+expectedReturn/100) - withdrawal; withdrawal *= (1+inflationRate/100)
portfolioAtEnd = max(0, portfolio after 'years' iterations)
successProbability: tiered lookup based on withdrawalRate (>5%->70, >4.5%->80, >4%->85, >3.5%->90, <=3%->98, else 95)
Where:
portfolioValue (default 500000), withdrawalRate % (default 4), expectedReturn % (default 6), inflationRate % (default 2.5), years (default 30)
Assumptions:
Withdrawal is taken at start of year based on first-year rate, then grows with inflation each subsequent year
Return applied once annually (not monthly)
successProbability is a hardcoded lookup table, not a Monte Carlo or statistical simulation
Portfolio floored at 0 (no negative balances)

Key Takeaways

  • •The 4% rule is a common starting point but may be too aggressive in low-return environments
  • •Flexibility helps — reducing withdrawals in down years extends portfolio life
  • •Consider a bucket strategy: cash for near-term needs, bonds for medium-term, stocks for long-term
  • •Social Security and pensions reduce the amount your portfolio needs to generate
  • •Roth conversions and tax planning can increase after-tax income

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