Withdrawals paid and the remaining investment fund
Total withdrawals are the money actually available to pay out. If a scheduled withdrawal exceeds the remaining fund, the model pays the available amount and stops further payouts. The fund never becomes a negative loan balance. Total planned withdrawals continues counting the requested payments for the whole horizon, even after depletion. Unpaid planned withdrawals is that total minus actual payouts, not an investment loss. The final-year amount shows the requested monthly payment, whether or not funds remain.
For a target fund that supports expenses rising with inflation each year, use the Retirement Corpus Calculator and specify the finite retirement period to fund.
The formula
The annual return is nominal and divided by twelve. In start-month mode, the withdrawal comes before growth. Net investment change equals ending balance plus actual withdrawals minus the opening fund, so withdrawals themselves are not counted as investment losses. The increase is zero when disabled. An enabled annual increase changes all twelve monthly payouts beginning in year two; it does not change the return assumption.
The final partial payment
An opening balance of 250, zero return, and a planned withdrawal of 100 pays 100 in month one, 100 in month two, and 50 in month three. Total withdrawals are 250 and the fund is depleted in month three.
How to use this calculator
- Enter the opening fund and the first-year monthly withdrawal.
- Set a nominal annual return and whole withdrawal years, choose start/end monthly timing and optionally enable yearly payout increases.
- Review the live remaining fund, actual and planned withdrawals, unpaid shortfall and depletion month. Inspect the annual schedule.
A withdrawal is not the same as income
A systematic withdrawal can distribute both capital and investment gains. Receiving a monthly payment does not prove that the portfolio earned that amount. Compare cumulative payouts with the remaining fund to understand how much capital is being consumed.
A fixed nominal payout loses purchasing power when prices rise. Enabling an annual increase lets you enter a rising-spending scenario; it does not predict inflation. Poor returns early in the plan can cause earlier depletion than a smooth return assumption, and actual fund units and tax rules are not simulated.
Assumptions & limitations
What this calculation assumes
- The opening fund receives no new contributions.
- Planned monthly withdrawals are fixed unless a constant annual percentage increase is enabled.
- All months use the same modeled return.
What to keep in mind
- No tax, exit load, fees, actual inflation index or market return sequence is included.
- A non-depletion result only applies within the entered horizon and assumptions.
Common questions
Can I enter a negative return?
Yes. Negative return scenarios reduce the balance before or after withdrawals according to the timing selected. They are useful stress scenarios, not market forecasts.
Does the model keep paying after depletion?
No. The last payout may be partial. Subsequent years show zero fund balance and no additional withdrawals.
Can withdrawals increase with my spending needs?
Enable Increase withdrawals each year and enter a percentage. A first-year monthly payout of 100 and a 10% increase gives 110 per month in year two. The table shows requested payouts and any part the fund cannot pay.
Is the unpaid amount an investment loss?
No. It is the difference between your planned payouts and the withdrawals the fund could actually pay during the entered period. Modeled net investment change separately reconciles the opening fund, ending balance and paid withdrawals.
Sources & further reading
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