Compounding while you take money out.
A worked example
Starting figures
- Starting balance
- $300,000
- Monthly withdrawal
- $1,200
- Return
- 6%
- Years
- 20
What it returns
- Balance after 20 years
- $438,612
- Total withdrawn
- $288,000
How to read the results
With the defaults above, balance after 20 years works out at $438,612.