Required Minimum Distribution (RMD) Calculator

Use this calculator to estimate required minimum distribution from tax-deferred retirement accounts.

What this calculator does

The RMD calculator estimates the annual required minimum distribution based on prior year-end account balance and current age. It uses the Uniform Lifetime Table divisor embedded in the calculator.

It uses:

• prior year-end account balance
• current age
• retirement account type
• IRS life-expectancy divisor

RMD Formula

RMD = Prior Year-End Balance ÷ IRS Divisor

Where:

• RMD = required minimum distribution
• Balance = account balance on Dec 31 of prior year
• Divisor = IRS life-expectancy factor
• RMD % = RMD divided by balance

Example calculation

If:

• Balance = 800,000
• Age = 73
• Divisor = 26.5
• RMD = 800,000 ÷ 26.5

Then:

• RMD = 30,189
• Monthly equivalent = 2,516
• RMD percentage = 3.77%
• The account must distribute at least that amount

The estimated RMD is 30,189.

What is RMD?

RMD means required minimum distribution. It is the minimum amount that generally must be withdrawn each year from certain tax-deferred retirement accounts after the required starting age.

Why RMD planning matters

• avoids missed distribution penalties
• supports tax planning
• helps manage retirement cash flow
• affects IRA and workplace account withdrawals

When to use this calculator

• estimating annual RMD
• planning taxable withdrawals
• checking monthly equivalent income
• reviewing account balances before year end

Common mistakes

• using the wrong balance date
• forgetting the starting age
• using the wrong divisor
• ignoring taxes on distributions

RMD vs retirement withdrawal

RMD is a required minimum withdrawal under tax rules. Retirement withdrawal is any amount taken for spending.

Your planned withdrawal can be higher than the RMD.

FAQs

What is RMD?

RMD is the required minimum distribution from certain retirement accounts.

How do you calculate RMD?

Divide the prior year-end account balance by the IRS life-expectancy divisor for your age.

What is a good RMD strategy?

A good strategy meets the required amount while managing taxes and cash flow.

What is the difference between RMD and retirement withdrawal?

RMD is required by tax rules. Retirement withdrawal is spending-driven.