$5 million at $300,000 a year, year by year
Starting at 65, the money runs out at age 87. The withdrawal grows 2% a year, so by year 20 it is $437,043; the balance earns 5% on what is left after each withdrawal.
| Year | Age | Balance at start | Withdrawal | Balance at end |
|---|---|---|---|---|
| 1 | 65 | $5,000,000 | $300,000 | $4,935,000 |
| 2 | 66 | $4,935,000 | $306,000 | $4,860,450 |
| 3 | 67 | $4,860,450 | $312,120 | $4,775,747 |
| 4 | 68 | $4,775,747 | $318,362 | $4,680,253 |
| 5 | 69 | $4,680,253 | $324,730 | $4,573,300 |
| 6 | 70 | $4,573,300 | $331,224 | $4,454,179 |
| 7 | 71 | $4,454,179 | $337,849 | $4,322,147 |
| 8 | 72 | $4,322,147 | $344,606 | $4,176,419 |
| 9 | 73 | $4,176,419 | $351,498 | $4,016,167 |
| 10 | 74 | $4,016,167 | $358,528 | $3,840,521 |
| 11 | 75 | $3,840,521 | $365,698 | $3,648,564 |
| 12 | 76 | $3,648,564 | $373,012 | $3,439,329 |
| 13 | 77 | $3,439,329 | $380,473 | $3,211,799 |
| 14 | 78 | $3,211,799 | $388,082 | $2,964,903 |
| 15 | 79 | $2,964,903 | $395,844 | $2,697,513 |
| 16 | 80 | $2,697,513 | $403,761 | $2,408,440 |
| 17 | 81 | $2,408,440 | $411,836 | $2,096,434 |
| 18 | 82 | $2,096,434 | $420,072 | $1,760,180 |
| 19 | 83 | $1,760,180 | $428,474 | $1,398,291 |
| 20 | 84 | $1,398,291 | $437,043 | $1,009,310 |
| 21 | 85 | $1,009,310 | $445,784 | $591,702 |
| 22 | 86 | $591,702 | $454,700 | $143,853 |
| 23 | 87 | $143,853 | $143,853 | $0 |
The odds $5 million lasts at $300,000 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 $300,000 a year, rising with inflation, still leaves money in the account after each number of years.
| For | Trinity-style (7%, 12%) | Cautious (5%, 15%) |
|---|---|---|
| 20 years | 64% | 47% |
| 25 years | 41% | 27% |
| 30 years | 26% | 17% |
| 35 years | 18% | 13% |
| 40 years | 14% | 10% |
What other returns and inflation do
| Return | No raise | 2% raise | 3% raise |
|---|---|---|---|
| 3% | 23 years | 19 years | 17 years |
| 4% | 27 years | 20 years | 19 years |
| 5% | 33 years | 23 years | 20 years |
| 6% | 50 years | 26 years | 23 years |
| 7% | 60+ years | 32 years | 26 years |
With Social Security covering part of it
If Social Security pays part of the $300,000 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.
| Benefit a month | Retire at 62 | Retire at 65 | Retire at 67 |
|---|---|---|---|
| $1,500 | 24 years | 25 years | 25 years |
| $2,000 | 25 years | 25 years | 26 years |
| $2,500 | 25 years | 26 years | 26 years |
Tax on a $300,000 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:
| Household | Federal tax | Share of the withdrawal |
|---|---|---|
| Single, $24,000 of Social Security | $74,557 | 25% |
| Married, $42,000 of Social Security | $57,244 | 19% |
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
Taking $300,000 a year ($25,000 a month) from $5,000,000, raised 2.0% a year for inflation, at a steady 5.0% return, the money runs out in year 23, around age 87. To make it last exactly 30 years, you could start at $245,927 a year.
Other withdrawals from $5 million
| Withdrawal a year | A month | Lasts |
|---|---|---|
| $150,000 | $12,500 | 60+ years |
| $200,000 | $16,667 | 44 years |
| $250,000 | $20,833 | 30 years |
| $300,000 | $25,000 | 23 years |
| $400,000 | $33,333 | 16 years |
| $500,000 | $41,667 | 12 years |
All withdrawals and the odds on one page: how long $5 million lasts. The same $300,000 a year from $3 million or $4 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.