How Much Income Can $3 Million Generate in Retirement?
The income generated by a $3 million portfolio depends on how much you withdraw, how the assets are invested, taxes, inflation and how long the portfolio must last.
Change the inputs and compare scenarios with the related RetirementMetric calculator.
Open the calculatorWithdrawal-rate examples
At 2.5%, $3 million produces $75,000 in first-year withdrawals; at 3%, $90,000; at 3.5%, $105,000; at 4%, $120,000. These figures are before taxes and do not promise that a portfolio will last.
Income is not the same as yield
Retirement cash flow can come from interest, dividends and selling assets. Requiring the entire spending need to come only from dividends can distort portfolio construction.
Coordinate other income
Social Security, pensions, part-time income and required distributions can change how much must be drawn from investments each year.
How to use this number responsibly
Use the result as a planning range rather than a forecast. Re-run the calculation when your balance, contribution rate, debt, retirement date, tax situation or spending target changes. For investment projections, compare multiple return assumptions because future market returns are unknown.
What this calculator does not know
RetirementMetric does not know your complete tax situation, benefits, investment holdings, insurance needs or household expenses. The tools are educational estimates, not individualized investment, tax or legal advice.
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