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Inflation calculator
How will inflation decrease the value of your assets?
How long can you live with $1 200 000,00 in savings by paying yourself $5 000,00 per month?
| Initial savings: | $1 200 000,00 | |
| Interest rate: | 5% | |
| Monthly withdrawal: | $5 000,00 | |
| Annual increase of withdrawal: | 0% | |
| Your savings will last for: | over 100 years |
Initial amount of $1 200 000,00 will enough for over 100 years of retirement. The simulation assumes that you will keep investing with predicted anuual interest rate of 5%.
Monthly withdrawals $5 000,00 will remain constant for entire period of your retirement. Consider setting annual increase of withdrawal to gain headge for 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 $1 200 000,00 with 5% interest rate will allow you to live on:
-
$5 500,00 per month for 48 years
-
$6 000,00 per month for 35 years 10 months
| Monthly withdrawal | Duration |
|---|---|
| $5 500,00 | 48 years |
| $6 000,00 | 35 years 10 months |
Lower monthly withdrawals
Initial amount of $1 200 000,00 with 5% interest rate will allow you to live on:
-
$4 500,00 per month for over 100 years.
-
$4 000,00 per month for over 100 years.
| Monthly withdrawal | Duration |
|---|---|
| $4 500,00 | over 100 years |
| $4 000,00 | over 100 years |
Different interest rate
Check how different interest rate will impact total return from $1 200 000,00
-
4% ensures stable withdrawals for 40 years 3 months
-
5% ensures stable withdrawals for over 100 years
-
6% ensures stable withdrawals for over 100 years
| Interest rate | Monthly withdrawal | Duration |
|---|---|---|
| 4% | $5 000,00 | 40 years 3 months |
| 5% | $5 000,00 | over 100 years |
| 6% | $5 000,00 | over 100 years |
Higher initial savings
With higher initial amount you will be able to withdraw $5 000,00 for much longer:
-
$1 320 000,00 will last for over 100 years
-
$1 440 000,00 will last for over 100 years
-
$1 560 000,00 will last for over 100 years
| Initial savings | Monthly withdrawal | Duration |
|---|---|---|
| $1 320 000,00 | $5 000,00 | over 100 years |
| $1 440 000,00 | $5 000,00 | over 100 years |
| $1 560 000,00 | $5 000,00 | over 100 years |
