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Inflation calculator
How will inflation decrease the value of your assets?
How long can you live with $1 000 000,00 in savings by paying yourself $2 000,00 per month?
| Initial savings: | $1 000 000,00 | |
| Interest rate: | 6% | |
| Monthly withdrawal: | $2 000,00 | |
| Annual increase of withdrawal: | 2% | |
| Your savings will last for: | over 100 years |
Initial amount of $1 000 000,00 will enough for over 100 years of retirement. The simulation assumes that you will keep investing with predicted anuual interest rate of 6%.
Monthly withdrawals $2 000,00 will be increased by $2,00% every year to balance the impact of inflation.
The calculation could be described by formula below, see schedule for details.
SAVINGS + INTERESTS - TAX - WITHDRAWAL = CAPITAL LEFT
Consider alternative scenarios
Higher monthly withdrawals
Initial amount of $1 000 000,00 with 6% interest rate will allow you to live on:
-
$2 200,00 per month for over 100 years.
-
$2 400,00 per month for over 100 years.
| Monthly withdrawal | Duration |
|---|---|
| $2 200,00 | over 100 years |
| $2 400,00 | over 100 years |
Lower monthly withdrawals
Initial amount of $1 000 000,00 with 6% interest rate will allow you to live on:
-
$1 800,00 per month for over 100 years.
-
$1 600,00 per month for over 100 years.
| Monthly withdrawal | Duration |
|---|---|
| $1 800,00 | over 100 years |
| $1 600,00 | over 100 years |
Different interest rate
Check how different interest rate will impact total return from $1 000 000,00
-
4.8% ensures stable withdrawals for 96 years 1 months
-
6% ensures stable withdrawals for over 100 years
-
7.2% ensures stable withdrawals for over 100 years
| Interest rate | Monthly withdrawal | Duration |
|---|---|---|
| 4.8% | $2 000,00 | 96 years 1 months |
| 6% | $2 000,00 | over 100 years |
| 7.2% | $2 000,00 | over 100 years |
Higher initial savings
With higher initial amount you will be able to withdraw $2 000,00 for much longer:
-
$1 100 000,00 will last for over 100 years
-
$1 200 000,00 will last for over 100 years
-
$1 300 000,00 will last for over 100 years
| Initial savings | Monthly withdrawal | Duration |
|---|---|---|
| $1 100 000,00 | $2 000,00 | over 100 years |
| $1 200 000,00 | $2 000,00 | over 100 years |
| $1 300 000,00 | $2 000,00 | over 100 years |
