Retirement Calculator · Practical guide
How Long Will $1 Million Last in Retirement?
The honest answer: anywhere from about 20 years to a full lifetime, depending on how much you withdraw each month.
At a glance
The Short Answer
Assuming a 7% annual return and withdrawals that rise with 2.5% inflation, $1 million lasts about 48 years if you spend $4,000 per month — effectively a lifetime for most retirees. Spend $5,000 per month and it lasts roughly 28 years; at $6,000 per month, about 20 years.
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Retirement Calculator
Enter your own values, then compare the result with the examples below.
Retirement Projection
Years $1 Million Lasts by Monthly Spending
| Monthly Withdrawal | Annual (Year 1) | Years It Lasts (7% return, 2.5% inflation) |
|---|---|---|
| $3,333 (4% rule) | $40,000 | Lifetime (balance keeps growing) |
| $4,000 | $48,000 | About 48 years |
| $5,000 | $60,000 | About 28 years |
| $6,000 | $72,000 | About 20 years |
Why the Return Assumption Matters
Drop the assumed return from 7% to 5% and the same $4,000-per-month plan lasts about 28 years instead of 48. Returns do the heavy lifting: at 7%, a $1 million portfolio earns about $70,000 in year one, which can fully cover a $48,000 withdrawal and still grow. At lower returns the balance erodes far faster, which is why the calculator above lets you test different return and inflation assumptions side by side.
The 4% Rule Connection
The famous 4% rule says withdrawing $40,000 in year one (4% of $1 million) and adjusting for inflation each year historically survived every 30-year retirement. That is exactly the $3,333-per-month row above, where the portfolio never runs out. Every dollar of spending above that level trades longevity for lifestyle — and the simulation shrinks fast once withdrawals outpace growth.
Frequently Asked Questions
Can you retire at 60 with $1 million?
Yes, if you keep withdrawals near the 4% rule level of $40,000 per year, the money has historically lasted 30 years or more. Add Social Security starting at 62 or later and the picture improves further.
What if inflation runs higher than 2.5%?
Higher inflation makes each year's withdrawal grow faster, shortening the fund's life. At 4% inflation, $1 million supporting $4,000 per month at a 7% return runs out several years sooner than the 48-year baseline.
Does this include taxes on withdrawals?
No. The projection treats your full balance as spendable. If withdrawals come from a traditional 401(k) or IRA, they are taxed as ordinary income, so budget your spending in after-tax terms.
Should I plan for the money to last past age 90?
Most planners suggest funding a retirement to at least age 95. A 60-year-old couple has a meaningful chance of one spouse living into their 90s, so building in a margin above 30 years is prudent.