How we worked it out
Updated as you change the numbers.
- Payout = loan payment formula on $500,000.00 over 300 months at 0.4167% a month = $2,922.95.
Method and assumptions
Drawing a fixed amount from an invested balance is a loan in reverse: the balance earns the return each month and the payout reduces it. The payout that runs it to zero after n months uses the same formula as a loan payment. Real returns vary year to year, and inflation reduces what a fixed payout buys.
Questions
How much monthly income does $500,000 provide for 25 years at 5%?
About $2,923 a month.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.