How this calculator works
Monthly contributions grow until retirement, then monthly withdrawals reduce the balance to zero over the retirement horizon. The same constant effective annual return applies in both phases. Contributions and withdrawals occur at month end. Inflation adjusts only the displayed nest egg; withdrawals remain level in nominal dollars. Taxes, fees, CPP, OAS and account rules are excluded.
Formula
i = (1+r)^(1/12) - 1; N = 12y; K = 12z. F = P(1+i)^N + C((1+i)^N - 1)/i; today's value = F/(1+f)^y; withdrawal = Fi/(1-(1+i)^(-K)). At i = 0, F = P + NC and withdrawal = F/K. r and f are annual return and inflation as fractions; y and z are years before and during retirement.
Worked example
With $50,000 saved, $500 added monthly, a 5% effective annual return and 25 years until retirement, the nest egg is $462,185.01. At 2% inflation it buys what $281,716.03 buys today. Thirty years of level withdrawals at the same return gives $2,449.84 a month.
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Frequently asked questions
Is this a safe withdrawal rate?
No. The calculation assumes steady returns and deliberately ends at zero. It does not model market losses, sequence risk, longevity or a reserve for unexpected costs.
Do withdrawals increase with inflation?
No. Monthly withdrawals stay at the same dollar amount. Inflation changes the purchasing-power comparison for the nest egg only.
Can I already be retired?
Yes. Set years until retirement to 0. The current savings become the starting withdrawal balance, with at least one year of withdrawals.