Spending $2,000 per month, $300,000 lasts
about 18 years
At $2,000 per month, $300,000 lasts about 18 years under our assumptions. Keep withdrawals at or below roughly $1,000 per month — the 4% rule for this balance — and the portfolio is built to outlast a 30-year retirement.
Open the calculatorabout 18 years
$1,000/mo
4% rule
about 4 years
7%/yr
before inflation
How long a lump sum lasts depends on three forces pulling against each other: how much you withdraw, how much the remaining balance earns, and how fast inflation erodes purchasing power. Withdraw less than the portfolio's inflation-adjusted growth and it can last indefinitely; withdraw more and the clock starts ticking.
The table below runs the numbers for $300,000 across realistic spending levels, assuming the money stays invested while you draw it down and that each withdrawal keeps pace with inflation.
| Monthly withdrawal | Annual withdrawal | How long it lasts | Verdict |
|---|---|---|---|
| $1,000 | $12,000 | 60+ years | Sustainable — at or below the 4% rule |
| $2,000 | $24,000 | about 18 years | Only viable with substantial other income |
| $3,000 | $36,000 | about 11 years | Only viable with substantial other income |
| $4,000 | $48,000 | about 8 years | Depletes quickly — likely too high |
| $5,000 | $60,000 | about 6 years | Depletes quickly — likely too high |
| $7,500 | $90,000 | about 4 years | Depletes quickly — likely too high |
Withdrawals are inflation-adjusted (constant purchasing power) and the remaining balance keeps earning our assumed return. Withdrawals at or below about $1,000 per month (the 4% rule for this balance) are sustainable indefinitely under these assumptions.
Around $1,000 per month is the classic answer — that's the 4% rule applied to $300,000, designed around a 30-year retirement. Modestly higher spending can still work for shorter horizons, as the table shows, but it narrows your margin for bad market years.
Because the remaining balance keeps compounding. Each dollar you don't withdraw earns returns that fund future withdrawals, so longevity is highly non-linear: cutting spending from $7,500 to $2,000 per month doesn't just stretch the timeline proportionally — it can multiply it.
Yes — the balance is assumed to earn 7% per year before inflation throughout retirement. Cash sitting in a checking account would deplete much faster: $300,000 with no growth covers exactly 12 years at $2,000 per month before inflation is even considered.
Every withdrawal in the projection rises with inflation (2.5% per year) so your purchasing power stays level, and the growth figures are inflation-adjusted. That makes these durations more conservative — and more realistic — than naive division.
A market downturn early in retirement, large one-off expenses (healthcare is the usual culprit), withdrawal rates that creep upward, or higher-than-expected inflation. Holding a cash buffer and being willing to trim spending in bad years are the standard mitigations.
Open the calculator with $300,000 and a $2,000/month withdrawal prefilled, then adjust the spending, returns, and timeline to match your plan.
Model $300,000 in the calculatorDisclaimer: This page is an educational estimate based on simplified assumptions, not financial advice. Market returns vary, and your taxes, fees, and personal circumstances will change the outcome. Consider consulting a qualified financial advisor before making retirement decisions.