$1,000 a month is a 4% starting draw
With no real growth, $300,000 funds 300 month-end payments of $1,000: 25 years. A $2,500 withdrawal would use the same balance in ten years. The first job is to identify which amount the savings must actually cover.
A $2,500 budget need not mean a $2,500 withdrawal
In this example, other spendable income supplies $1,500 of a $2,500 monthly budget. The portfolio supplies the remaining $1,000. Both income figures are chosen assumptions; neither is an estimate of Social Security, pension benefits or take-home pay.
Green is assumed outside income; brass is the portfolio gap. All amounts are monthly and hypothetical.
Three starting rates on $300,000
A 3%, 4% or 5% first-year draw equals $750, $1,000 or $1,250 per month. The columns hold each amount constant in purchasing power.
| Monthly draw | 0% real | 1% real | 3% real |
|---|---|---|---|
| $750 | 33y 4m | 40y 7m | 145y 8m |
| $1,000 | 25y 0m | 28y 10m | 45y 7m |
| $1,250 | 20y 0m | 22y 4m | 30y 4m |
Final dates include a partial payment when needed. “No depletion” assumes the stated constant growth continues.
What $500 of part-time income changes
Adding $500 of work income reduces the portfolio gap to $500 while that work continues. At zero return, seven years of $500 withdrawals consume $42,000; $1,000 withdrawals consume $84,000. The difference is $42,000 kept in the account before any tax or investment effects.
Give temporary earnings an end date
If the work lasts seven years, do not use the $500 gap for every later year. The zero-growth balance would be $258,000 when that work ends. Returning to a $1,000 monthly draw then funds another 258 payments. A constant-input calculator represents one phase at a time.
Questions about this calculation
Can I retire on $300,000?
The answer depends strongly on the income gap. This page illustrates $300,000 supplying $1,000 monthly alongside $1,500 of assumed outside income. It does not establish that those resources cover your expenses, taxes or retirement horizon.
How much is 5% of $300,000 per month?
Five percent is $15,000 in the first year, equivalent to $1,250 per month. That percentage is an arithmetic starting rate, not a safety recommendation.
Can I count part-time pay after I stop working?
No. In the seven-year example, the withdrawal rises from $500 to $1,000 when the assumed $500 of work income ends. Keeping the lower withdrawal forever would describe a different budget.
Check the assumptions
Original scenarios, reviewed October 25, 2026. Monthly calculation method. Return, income and expense amounts are assumptions; no market forecast or personal recommendation is made.