Turn a savings balance into a fixed-payment scenario
Enter a USD balance, whole years, nominal annual rate and flat tax percentage. The model computes equal month-end withdrawals that target a zero balance at the end of the horizon. A constant return is assumed each month; actual portfolio returns will vary.
Understand the annuity formula
PMT = PV × r / (1 − (1 + r)−n), where r is the entered annual rate divided by 12 and n is years × 12. At zero return, PMT = PV / n. The annual input is a nominal rate with monthly compounding, not an effective annual rate.
For $500,000 over 25 years at a nominal 5% annual rate, the calculated gross withdrawal is about $2,922.95 per month. Applying a flat 20% deduction gives $2,338.36. This is an arithmetic illustration, not a promised income stream.
Read the schedule and tax estimate
Each month earns or loses the assumed return before the withdrawal. Annual rows sum those movements. The tax percentage is deducted from the gross payment; it does not reduce the amount removed from the portfolio. A negative return is supported and appears as a loss, not a positive pie-chart contribution.
Keep tax treatment separate from the model
Accounts can have different taxable bases and withdrawal rules. Qualified Roth distributions may be tax-free; not every Roth withdrawal is automatically exempt. See IRS Publication 590-B for IRA distributions. This flat-rate illustration does not apply legal eligibility rules or tax brackets.
Inflation and longevity remain outside the result
Payments are fixed nominal dollars. Their purchasing power can fall. The exact annual real-return relationship is (1 + nominal return) / (1 + inflation) − 1; subtraction is only an approximation, and a real-dollar scenario must use a consistent basis throughout. This page does not generate an inflation-linked nominal withdrawal schedule.
A selected horizon does not assure lifetime income. Social Security, pensions, fees and sequence-of-returns risk are omitted. Check your personalized benefit estimate with SSA and evaluate longer horizons separately. This calculation is not an insurance annuity quote or a safe withdrawal recommendation.