Savings Distribution Calculator
This calculator is designed to help you determine how much of your savings remains after a series of withdrawals. Enter your starting amount, how much to withdraw and how often and we will calculate your expected final balance.
- Starting amount
- The starting balance or current amount you have invested or saved.
- The total number of years you are planning to continue your withdrawals.
- Periodic withdrawal
- The amount that you plan on distributing (or withdrawing) from your savings or investment each period. The investment period options include monthly, quarterly and annually. This calculator assumes that you make your withdrawal at the beginning of each period.
- Rate of return
The annual rate of return for this investment or savings account. The actual rate of return
is largely dependent on the type of investments you select. For example, from December
1999 to December 2009, the average annual compounded rate of return for the S&P 500 was
-0.6%, including reinvestment of dividends. From January 1970 to December 2009, the average
annual compounded rate of return for the S&P 500, including reinvestment of dividends,
was approximately 10.1% (source: www.standardandpoors.com). Since 1970, the highest 12-month
return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March
2008 to March 2009). Savings accounts at a bank may pay as little as 1% or less but carry
significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.
- Earnings on an investment's earnings, plus previous interest. This calculator allows you to choose the frequency that your investment's interest or income is added to your account. The more frequently this occurs, the sooner your accumulated interest income will generate additional interest. For stock and mutual fund investments, you should choose 'Annual'. For savings accounts and CDs, all of the options are valid, although you will need to check with your financial institution to find out how often interest is being compounded on your particular investment.
Information and interactive calculators are made available to you as self-help tools for your personal independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.