How long will my money last?
The answer depends on your starting savings, how much you take out, the return you assume and how your withdrawals change over time. Enter a balance and a monthly or yearly withdrawal above to estimate when the balance may reach zero. You can use the same calculation to explore retirement savings, other invested funds or a 401(k) balance, but the result is a projection under your assumptions, not a promise about future markets.
Northstar calculates month by month. It applies growth using the monthly equivalent of your annual return assumption, then subtracts that month’s withdrawal. Planned withdrawals rise once per year by the inflation rate you enter. This gives a more useful illustration than dividing savings by one year of spending, although actual returns and spending rarely follow a smooth path.
What affects how long your savings last?
Starting balance
A larger balance generally extends the projection when all other inputs stay the same. Include only savings you intend to draw from in this estimate.
Withdrawal amount
Higher withdrawals use the balance faster. If Social Security, a pension or other income covers part of your spending, enter only the amount you need from savings.
Investment return
Use an annual return assumption after taxes and fees, if applicable. The tool does not calculate taxes or fees for you, and real returns can vary from year to year.
Inflation
The model raises the base withdrawal on each yearly anniversary. A higher inflation assumption therefore increases future withdrawals and can shorten the time your savings may last.
Example: how long will $500,000 last?
The example above starts with $500,000, withdraws $2,500 per month, assumes a 4% annual return and increases the withdrawal by 2.5% each year. The result card shows the calculated duration and the chart shows the projected balance. Change any input to see your own result; the example is an illustration, not a retirement target.
Questions about the calculation
Can I estimate how long my 401(k) will last?
Yes. Enter the portion of your 401(k) you expect to spend as the starting balance and estimate the withdrawal you need. The tool does not calculate 401(k) distribution taxes, required minimum distributions or account rules, so account for those when choosing your inputs.
What happens if I enter a yearly withdrawal?
The calculator divides that annual amount into 12 equal monthly withdrawals. It does not take the full amount in one lump sum each year.
How can I make my savings last longer?
Try a lower withdrawal in the comparison panel above. You can also adjust savings, return and inflation assumptions to see how sensitive the projection is to each input.