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How long will $3 million last at $200,000 a year?

20 years at a steady 5% return, with the $200,000 ($16,667 a month) raised 2% a year for inflation. Below: the balance year by year, the odds in 1,000 simulated markets, what other returns do, Social Security, the tax on the withdrawal, and a calculator set to these numbers.

Short answer: About 20 years at a steady 5% return, with the $200,000 raised 2% a year for inflation: retiring at 60 it runs out at age 79, at 65 at age 84. That is 6.7% of $3 million in the first year. At 7% it lasts 26 years; at 3%, 17 years.

$3 million at $200,000 a year, year by year

Starting at 65, the money runs out at age 84. The withdrawal grows 2% a year, so by year 20 it is $291,362; the balance earns 5% on what is left after each withdrawal.

$3 million, $200,000 a year rising 2%, 5% return, from age 65
YearAgeBalance at startWithdrawalBalance at end
165$3,000,000$200,000$2,940,000
266$2,940,000$204,000$2,872,800
367$2,872,800$208,080$2,797,956
468$2,797,956$212,242$2,715,000
569$2,715,000$216,486$2,623,439
670$2,623,439$220,816$2,522,754
771$2,522,754$225,232$2,412,398
872$2,412,398$229,737$2,291,794
973$2,291,794$234,332$2,160,335
1074$2,160,335$239,019$2,017,382
1175$2,017,382$243,799$1,862,263
1276$1,862,263$248,675$1,694,267
1377$1,694,267$253,648$1,512,650
1478$1,512,650$258,721$1,316,625
1579$1,316,625$263,896$1,105,366
1680$1,105,366$269,174$878,002
1781$878,002$274,557$633,617
1882$633,617$280,048$371,247
1983$371,247$285,649$89,877
2084$89,877$89,877$0

The odds $3 million lasts at $200,000 a year

Returns arrive in a random order, and a few bad years early do the most damage. In 1,000 simulated markets, this is the share in which $200,000 a year, rising with inflation, still leaves money in the account after each number of years.

Chance $200,000 a year from $3 million lasts, 1,000 simulated markets
ForTrinity-style (7%, 12%)Cautious (5%, 15%)
20 years49%33%
25 years26%18%
30 years16%11%
35 years12%8%
40 years8%5%

What other returns and inflation do

Years $200,000 a year from $3 million lasts, by return and yearly raise
ReturnNo raise2% raise3% raise
3%20 years17 years15 years
4%22 years18 years17 years
5%26 years20 years18 years
6%33 years22 years20 years
7%59 years26 years22 years

With Social Security covering part of it

If Social Security pays part of the $200,000 from some point, the portfolio only pays the rest. Retiring at 65 and claiming at 67 means two years before benefits start; retiring at 62, five.

Years $3 million lasts, $200,000 a year in total, Social Security from 67
Benefit a monthRetire at 62Retire at 65Retire at 67
$1,50022 years22 years22 years
$2,00022 years23 years24 years
$2,50023 years24 years25 years

Tax on a $200,000 withdrawal

From a traditional 401(k) or IRA, the whole withdrawal is ordinary income, and it can make more of your Social Security taxable. Federal tax it adds at 65 on 2026 rules, estimates:

Federal tax a $200,000 withdrawal adds at 65
HouseholdFederal taxShare of the withdrawal
Single, $24,000 of Social Security$41,17621%
Married, $42,000 of Social Security$33,09017%

Roth withdrawals after 59½ and a five-year holding period are tax-free; money in a taxable account is taxed only on the gains. The retirement tax calculator adds state tax.

The calculator, set to these numbers

Your money lasts20 yearsRuns out around age 84
Most you can withdraw for 30 years$147,556 a year$12,296 a month, rising with inflation
Taken from the portfolio$200,000 a year6.7% of the portfolio in year one

Taking $200,000 a year ($16,667 a month) from $3,000,000, raised 2.0% a year for inflation, at a steady 5.0% return, the money runs out in year 20, around age 84. To make it last exactly 30 years, you could start at $147,556 a year.

Success rate10%1000 seeded paths
10th percentile ending$0
Median ending$0
90th percentile ending$17,829

Other withdrawals from $3 million

Years $3 million lasts by withdrawal, 5% return, 2% raises
Withdrawal a yearA monthLasts
$100,000$8,33360+ years
$120,000$10,00044 years
$150,000$12,50030 years
$200,000$16,66720 years
$250,000$20,83315 years
$300,000$25,00012 years

All withdrawals and the odds on one page: how long $3 million lasts. The same $200,000 a year from $2 million, $2.5 million, $4 million or $5 million.

How it is worked out

The steady-return figures are the how-long calculator’s own math: the withdrawal comes out at the start of each year, the rest earns the return, and the next withdrawal is 2% larger to keep up with inflation. Real markets do not return the same every year, so the odds come from 1,000 simulated sequences of yearly returns: Trinity-style (7% average, 12% volatility, 3% inflation) and cautious (5%, 15%, 2%). Taxes and fees are not taken out; take them from the withdrawal you enter. More on the method on the methodology page.

Frequently asked questions

How long will $3 million last if I withdraw $200,000 a year?
20 years at a steady 5% return when the withdrawal rises 2% a year with inflation, or 26 years if it stays at $200,000. The first withdrawal is 6.7% of the balance.
How long will $3 million last at $16,667 a month?
$16,667 a month is $200,000 a year, so the same 20 years at a 5% return with 2% yearly raises. Taxes come out of the withdrawal: from a traditional 401(k) or IRA, part of each payment goes to income tax.
What if Social Security covers part of the $200,000?
With $2,000 a month of Social Security from year three, the portfolio pays $176,000 a year from then on and lasts 23 years on a steady 5% return, against 20 years without it.