1. What is the Savings Duration Calculator?

This calculator determines how long your savings will last based on your current balance and monthly withdrawal rate. It helps with retirement planning, emergency fund assessment, and financial goal setting.

2. How Does the Calculator Work?

The calculator uses this simple formula:

Where:

• Savings — Your total current savings amount
• Monthly Withdrawal — Amount you plan to withdraw each month
• Time — Duration your savings will last (in years)

Note: This is a simplified calculation that doesn't account for interest, inflation, or changing withdrawal rates.

3. Importance of Savings Planning

Details: Understanding how long your savings will last helps prevent outliving your money, allows for better financial decisions, and helps set realistic retirement goals.

4. Using the Calculator

Tips: Enter your total savings and expected monthly withdrawal amount. For more accurate results, consider:

• Using current values for all accounts (checking, savings, investments)
• Including all expected monthly expenses
• Accounting for taxes if using tax-deferred accounts

5. Frequently Asked Questions (FAQ)

Q1: Does this account for interest or investment growth?
A: No, this is a simple calculation. For growth projections, use a retirement calculator that includes rate of return.

Q2: How accurate is this calculation?
A: It provides a baseline estimate but doesn't account for inflation, changing expenses, or unexpected costs.

Q3: Should I include Social Security/pension income?
A: This calculator assumes all living expenses come from savings. For more complex scenarios, subtract other income from expenses first.

Q4: What's a safe withdrawal rate?
A: The 4% rule is common for retirement, but your rate depends on age, risk tolerance, and market conditions.

Q5: How can I make my savings last longer?
A: Consider reducing withdrawals, working part-time, or investing for growth (with appropriate risk).