Retirement Income Calculator

Use this calculator to estimate annual and monthly retirement income from a portfolio and other income sources.

What this calculator does

The retirement income calculator converts a portfolio balance into estimated yearly and monthly income. It also adds other retirement income such as pension or Social Security estimates.

It uses:

• retirement portfolio value
• withdrawal rate
• other annual retirement income
• monthly income conversion

Retirement Income Formula

Annual Income = Portfolio × Withdrawal Rate + Other Income

Where:

• Portfolio = retirement savings balance
• Withdrawal Rate = percentage withdrawn each year
• Other Income = pension, Social Security, or similar income
• Monthly Income = annual income divided by 12

Example calculation

If:

• Portfolio = 1,000,000
• Withdrawal rate = 4%
• Other income = 12,000
• Portfolio income = 40,000

Then:

• Annual income = 40,000 + 12,000
• Annual income = 52,000
• Monthly income = 52,000 ÷ 12
• Monthly income = 4,333

The estimated retirement income is 52,000 per year.

What is retirement income?

Retirement income is the money available to spend after retirement. It can come from portfolio withdrawals, pensions, Social Security, rental income, annuities, or part-time work.

Why retirement income matters

• links savings to monthly spending power
• helps test whether retirement is affordable
• shows the role of non-portfolio income
• supports budgeting before retirement

When to use this calculator

• estimating monthly retirement cash flow
• testing different withdrawal rates
• adding pension or Social Security income
• comparing portfolio sizes

Common mistakes

• focusing only on portfolio value
• ignoring taxes on withdrawals
• using a withdrawal rate that is too high
• forgetting irregular expenses

Retirement income vs retirement savings

Retirement savings is the balance you own. Retirement income is the cash flow that balance and other sources can provide.

Income is usually more useful for monthly budgeting.

FAQs

What is retirement income?

Retirement income is cash flow available after retirement from savings and other income sources.

How do you calculate retirement income?

Multiply the portfolio by the withdrawal rate, then add other annual retirement income.

What is a good retirement income?

A good retirement income covers essential spending, discretionary spending, taxes, and a margin of safety.

What is the difference between retirement income and retirement savings?

Savings is the asset balance. Income is the amount available to spend each year or month.