How long a balance lasts when you draw on it, and whether it runs out before your chosen term ends.
Your numbers
$CAD
$CAD / year
% p.a.
% p.a.
years
Runs out after
Runs out after:
20.5 years
CA$3,000 a month to start with
Total withdrawnCA$897,178
Scheduled withdrawalsCA$1,460,451
ShortfallCA$563,273
Ending balanceCA$0
The starting balance, return, inflation, withdrawal and horizon are user inputs; the horizon is a planning period you choose, not a life expectancy, and no safe-withdrawal rate or market forecast is supplied. Every figure is nominal, and the entered annual return is converted to a monthly equivalent and applied before each end-of-month withdrawal. The first-year annual withdrawal is divided into twelve payments and changes once each year by the entered inflation rate. Withdrawals stop when the modelled balance reaches zero and any remaining scheduled amount is reported as a shortfall. Tax, fees, investment volatility, lump sum spending, contribution changes, government pensions and other retirement income are excluded.
Source: your own figures · scenario, not a forecastThe arithmetic is the same in every country
Why the shortfall line matters
If the balance empties before the period ends, the calculator keeps showing what you wanted to withdraw and records the difference as a shortfall. That number is the part of your plan the balance could not fund.
A smooth average return is the biggest simplification here. Two portfolios with the same average can end very differently depending on when the bad years fall.
Common questions
Does this include Canada Pension Plan or Old Age Security?
No. Add them separately: they reduce how much you need to draw from the balance, which can make it last considerably longer.
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