How long will the money last?
Whether it is a jackpot, an inheritance or a daydream, enter what you have and what you would spend. See how many years it lasts, and how much you could spend without it ever running out.
In today's dollars. It rises with inflation each year.
$10,000,000 spending $500,000 a year lasts
about 41 years
To make it last forever, keep spending under $400,000 a year.
At a glance
How many years each amount lasts at each yearly budget, earning 4.0% after inflation. “Forever” means the money earns more than you spend.
| You have | $100K/yr | $250K/yr | $500K/yr | $1M/yr | $2M/yr | $5M/yr |
|---|---|---|---|---|---|---|
| $1 million | 13 yrs | 4 yrs | 2 yrs | 1 yr | <1 yr | <1 yr |
| $5 million | Forever | 41 yrs | 13 yrs | 5 yrs | 2 yrs | 1 yr |
| $10 million | Forever | Forever | 41 yrs | 13 yrs | 5 yrs | 2 yrs |
| $20 million | Forever | Forever | Forever | 41 yrs | 13 yrs | 4 yrs |
| $50 million | Forever | Forever | Forever | Forever | Forever | 13 yrs |
| $100 million | Forever | Forever | Forever | Forever | Forever | 41 yrs |
How the calculation works
Each year the money earns its return, then you take out a year of spending. If the return covers the spending, the pot never shrinks and the money lasts forever. If it does not, the shortfall comes out of the principal, which then earns a little less the next year, and the decline speeds up toward the end.
That is why the line between “forever” and “a few decades” is so sharp. On $10 million, spending $400,000 a year lasts forever, but spending $500,000 lasts about 41 years.
If it is a lottery prize you are dreaming about, start with what is actually left after tax. The jackpot planner works that out for the current Powerball and Mega Millions jackpots and lets you spend it before seeing what the rest pays you.
Common questions
Estimates for planning and entertainment, not financial advice. Real returns vary year to year, and a bad run early on shortens how long money lasts. Talk to a financial planner before relying on any of this.