Formula
The yearly amount is split into 12 months:
Monthly income = nest egg × withdrawal rate / 12
Four percent is a common starting point, not a promise that the money lasts.
Assumptions
- You withdraw the same percent every year.
- Taxes are not withheld.
Worked example
An $800,000 nest egg at a 4% withdrawal pays $2,666.67 a month.
Input definitions
- Yearly withdrawal
- The percent of the nest egg you plan to spend each year.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Will 4% last 30 years?
This page does not simulate market returns. It only converts the percent into income.
Does the income rise with inflation?
No. The result is a flat amount.