Fixed Spend Calculator
Model future savings capital drawdown under fixed spend plans during retirement.
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Calculation Parameters
Specify your inputs below.
Calculated Result
First Year Return Yield $22,500.00
Net Capital Gained/Lost -$12,500.00
Capital Lifespan (Years) 23.0 years
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Expert Tip
To avoid depletion of principal, your fixed annual spend should ideally not exceed the yearly return yield.
How this Calculator Works
This calculator evaluates how long your retirement capital will last under a fixed annual drawdown rate, including return growth.
Formula & Methodology
Drawdown lifespan modeled iteratively until Capital reaches 0.
Step-by-Step Calculation Example
Here is a step-by-step example showing how the calculations are performed:
With $500,000 capital, 4.5% returns, and $35,000 spending:
- Year 1 Interest = $22,500
- Year 1 End Capital = $500,000 + $22,500 - $35,000 = $487,500
- Runs iteratively until capital hits zero (approx 23 years).
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