Inheritance Drawdown Plan
Calculator
Results
- Years until the money runs out
- 20 yr
- Final balance
- $0.00
- Total withdrawn
- $378,443.95
- Total growth earned
- $128,443.95
The path over time
- Closing balance
- Withdrawal this year
Year-by-year schedule
| 1 | 250,000.00 | 10,000.00 | 15,000.00 | 245,000.00 |
| 2 | 245,000.00 | 9,800.00 | 15,375.00 | 239,425.00 |
| 3 | 239,425.00 | 9,577.00 | 15,759.37 | 233,242.63 |
| 4 | 233,242.63 | 9,329.71 | 16,153.36 | 226,418.97 |
| 5 | 226,418.97 | 9,056.76 | 16,557.19 | 218,918.54 |
| 6 | 218,918.54 | 8,756.74 | 16,971.12 | 210,704.15 |
| 7 | 210,704.15 | 8,428.17 | 17,395.40 | 201,736.92 |
| 8 | 201,736.92 | 8,069.48 | 17,830.29 | 191,976.11 |
| 9 | 191,976.11 | 7,679.04 | 18,276.04 | 181,379.11 |
| 10 | 181,379.11 | 7,255.16 | 18,732.94 | 169,901.33 |
| 11 | 169,901.33 | 6,796.05 | 19,201.27 | 157,496.12 |
| 12 | 157,496.12 | 6,299.84 | 19,681.30 | 144,114.66 |
| 13 | 144,114.66 | 5,764.59 | 20,173.33 | 129,705.91 |
| 14 | 129,705.91 | 5,188.24 | 20,677.67 | 114,216.49 |
| 15 | 114,216.49 | 4,568.66 | 21,194.61 | 97,590.54 |
| 16 | 97,590.54 | 3,903.62 | 21,724.47 | 79,769.69 |
| 17 | 79,769.69 | 3,190.79 | 22,267.58 | 60,692.89 |
| 18 | 60,692.89 | 2,427.72 | 22,824.27 | 40,296.33 |
| 19 | 40,296.33 | 1,611.85 | 23,394.88 | 18,513.30 |
| 20 | 18,513.30 | 740.53 | 19,253.84 | 0.00 |
Comparison
| Scenario | Years until the money runs out | Final balance |
|---|---|---|
| Doing nothing | 15.00 | 0.00 |
| Your plan | 20.00 | 0.00 |
Formula
Bᵧ = Bᵧ₋₁(1 + r) − W₀(1 + g)^(y−1)= 0.00
Note
This projection applies the displayed standard formula to the costs and rates you entered and assumes they repeat, unchanged, every single period. Real households do not work that way: prices, incomes, interest rates and family circumstances all move, and a single unplanned event can outweigh years of the schedule below. The model ignores taxes, fees, benefits, grants and anything you did not enter, and costs of this kind vary enormously from one country to another. Treat the figures as an illustration of the arithmetic, not a forecast or financial advice, and consult a licensed adviser before acting on any of them.
More in Life planning
See all →Frequently asked questions
How does the calculator decide how long the inheritance will last?+
It takes the starting amount, your planned withdrawal rate or fixed annual amount, and an assumed investment return, then projects the balance forward until it's depleted or reaches your target end date.
What withdrawal rate is considered sustainable?+
A commonly cited guideline is around 4% of the initial balance annually, adjusted for inflation, though the right number depends on your time horizon, investment mix, and whether you want the balance to last indefinitely or deplete by a certain date.
Does the plan account for taxes on withdrawals or investment gains?+
Only if you enter an effective tax rate — inherited retirement accounts and taxable investment gains can both be taxed differently, so check whether your inputs reflect after-tax or pre-tax figures for an accurate drawdown timeline.
Why does a market downturn early in the drawdown matter more than one later on?+
This is sequence-of-returns risk — withdrawing money during a downturn locks in losses on a permanently smaller balance, so poor returns in the first few years of drawdown do more lasting damage than the same poor returns later, even with identical average returns overall.
Should I spend the inheritance or invest it and live off the growth?+
That depends on your goals — spending it down over a fixed period versus preserving principal and living off returns are different strategies the calculator can model separately by comparing a depleting drawdown against an indefinite, return-only withdrawal.