Model a strategy where withdrawals are borrowed against an investment portfolio instead of selling investments. Investments grow at the selected return, while the cumulative borrowed balance accrues interest.
The strategy generally has three steps: buy and hold appreciating assets, borrow against those assets for spending rather than selling them, and use the estate's assets to repay the debt after death. Avoiding investment sales defers capital gains taxes however borrowing creates interest costs.
The approach carries risks however. A market decline will reduce portfolio equity and rising interest rates can increase the debt burden. A lender may require additional collateral or repayment if maintenance-margin requirements are breached. This calculator is a simplified illustration, not financial, tax, or estate-planning advice.
| Ending Investments | $586,954,264.40 |
| Ending Debt | $55,782,513.42 |
| Ending Equity | $531,171,750.98 |
| Ending Equity % | 90.50% |
| Ending Withdrawal | $638,432.92 |
Each year begins with the prior year's investment value and debt balances. The withdrawal is added to the cumulative debt, then borrowing interest is applied. Investments grow separately at the investment return rate. Equity is ending investments minus ending debt.
Equity percentage is calculated as equity divided by ending investments. When enabled, drawdown values apply the configured temporary investment decline to ending investments while leaving debt unchanged. It does not account for fees, investment volatility, lender-specific maintenance-margin rules, loan-to-value limits, or changes in borrowing availability.
The full withdrawal shown for each year is borrowed at the start of the year and interest is accrued for the duration of the year.
| Year | Starting Investments | Cash Withdrawal | Investment Return | Ending Investments | Starting Debt | Interest | Ending Debt | Equity | Equity Change % | Equity % |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $5,000,000.00 | $150,000.00 | $500,000.00 | $5,500,000.00 | $0.00 | $7,500.00 | $157,500.00 | $5,342,500.00 | 6.85% | 97.14% |
| 2 | $5,500,000.00 | $154,500.00 | $550,000.00 | $6,050,000.00 | $157,500.00 | $15,600.00 | $327,600.00 | $5,722,400.00 | 7.11% | 94.59% |
| 3 | $6,050,000.00 | $159,135.00 | $605,000.00 | $6,655,000.00 | $327,600.00 | $24,336.75 | $511,071.75 | $6,143,928.25 | 7.37% | 92.32% |
| 4 | $6,655,000.00 | $163,909.05 | $665,500.00 | $7,320,500.00 | $511,071.75 | $33,749.04 | $708,729.84 | $6,611,770.16 | 7.61% | 90.32% |
| 5 | $7,320,500.00 | $168,826.32 | $732,050.00 | $8,052,550.00 | $708,729.84 | $43,877.81 | $921,433.97 | $7,131,116.03 | 7.85% | 88.56% |
| 6 | $8,052,550.00 | $173,891.11 | $805,255.00 | $8,857,805.00 | $921,433.97 | $54,766.25 | $1,150,091.33 | $7,707,713.67 | 8.09% | 87.02% |
| 7 | $8,857,805.00 | $179,107.84 | $885,780.50 | $9,743,585.50 | $1,150,091.33 | $66,459.96 | $1,395,659.14 | $8,347,926.36 | 8.31% | 85.68% |
| 8 | $9,743,585.50 | $184,481.08 | $974,358.55 | $10,717,944.05 | $1,395,659.14 | $79,007.01 | $1,659,147.23 | $9,058,796.82 | 8.52% | 84.52% |
| 9 | $10,717,944.05 | $190,015.51 | $1,071,794.41 | $11,789,738.46 | $1,659,147.23 | $92,458.14 | $1,941,620.88 | $9,848,117.58 | 8.71% | 83.53% |
| 10 | $11,789,738.46 | $195,715.98 | $1,178,973.85 | $12,968,712.30 | $1,941,620.88 | $106,866.84 | $2,244,203.70 | $10,724,508.60 | 8.90% | 82.70% |
| 11 | $12,968,712.30 | $201,587.46 | $1,296,871.23 | $14,265,583.53 | $2,244,203.70 | $122,289.56 | $2,568,080.71 | $11,697,502.82 | 9.07% | 82.00% |
| 12 | $14,265,583.53 | $207,635.08 | $1,426,558.35 | $15,692,141.88 | $2,568,080.71 | $138,785.79 | $2,914,501.58 | $12,777,640.30 | 9.23% | 81.43% |
| 13 | $15,692,141.88 | $213,864.13 | $1,569,214.19 | $17,261,356.07 | $2,914,501.58 | $156,418.29 | $3,284,784.00 | $13,976,572.07 | 9.38% | 80.97% |
| 14 | $17,261,356.07 | $220,280.06 | $1,726,135.61 | $18,987,491.68 | $3,284,784.00 | $175,253.20 | $3,680,317.26 | $15,307,174.42 | 9.52% | 80.62% |
| 15 | $18,987,491.68 | $226,888.46 | $1,898,749.17 | $20,886,240.85 | $3,680,317.26 | $195,360.29 | $4,102,566.01 | $16,783,674.84 | 9.65% | 80.36% |
| 16 | $20,886,240.85 | $233,695.11 | $2,088,624.08 | $22,974,864.93 | $4,102,566.01 | $216,813.06 | $4,553,074.18 | $18,421,790.76 | 9.76% | 80.18% |
| 17 | $22,974,864.93 | $240,705.97 | $2,297,486.49 | $25,272,351.42 | $4,553,074.18 | $239,689.01 | $5,033,469.15 | $20,238,882.28 | 9.86% | 80.08% |
| 18 | $25,272,351.42 | $247,927.14 | $2,527,235.14 | $27,799,586.57 | $5,033,469.15 | $264,069.81 | $5,545,466.11 | $22,254,120.46 | 9.96% | 80.05% |
| 19 | $27,799,586.57 | $255,364.96 | $2,779,958.66 | $30,579,545.22 | $5,545,466.11 | $290,041.55 | $6,090,872.62 | $24,488,672.60 | 10.04% | 80.08% |
| 20 | $30,579,545.22 | $263,025.91 | $3,057,954.52 | $33,637,499.75 | $6,090,872.62 | $317,694.93 | $6,671,593.45 | $26,965,906.29 | 10.12% | 80.17% |
| 21 | $33,637,499.75 | $270,916.69 | $3,363,749.97 | $37,001,249.72 | $6,671,593.45 | $347,125.51 | $7,289,635.65 | $29,711,614.07 | 10.18% | 80.30% |
| 22 | $37,001,249.72 | $279,044.19 | $3,700,124.97 | $40,701,374.69 | $7,289,635.65 | $378,433.99 | $7,947,113.82 | $32,754,260.87 | 10.24% | 80.47% |
| 23 | $40,701,374.69 | $287,415.51 | $4,070,137.47 | $44,771,512.16 | $7,947,113.82 | $411,726.47 | $8,646,255.80 | $36,125,256.36 | 10.29% | 80.69% |
| 24 | $44,771,512.16 | $296,037.98 | $4,477,151.22 | $49,248,663.38 | $8,646,255.80 | $447,114.69 | $9,389,408.47 | $39,859,254.91 | 10.34% | 80.93% |
| 25 | $49,248,663.38 | $304,919.12 | $4,924,866.34 | $54,173,529.72 | $9,389,408.47 | $484,716.38 | $10,179,043.96 | $43,994,485.75 | 10.37% | 81.21% |
| 26 | $54,173,529.72 | $314,066.69 | $5,417,352.97 | $59,590,882.69 | $10,179,043.96 | $524,655.53 | $11,017,766.19 | $48,573,116.50 | 10.41% | 81.51% |
| 27 | $59,590,882.69 | $323,488.69 | $5,959,088.27 | $65,549,970.96 | $11,017,766.19 | $567,062.74 | $11,908,317.62 | $53,641,653.34 | 10.43% | 81.83% |
| 28 | $65,549,970.96 | $333,193.35 | $6,554,997.10 | $72,104,968.05 | $11,908,317.62 | $612,075.55 | $12,853,586.52 | $59,251,381.53 | 10.46% | 82.17% |
| 29 | $72,104,968.05 | $343,189.15 | $7,210,496.81 | $79,315,464.86 | $12,853,586.52 | $659,838.78 | $13,856,614.45 | $65,458,850.40 | 10.48% | 82.53% |
| 30 | $79,315,464.86 | $353,484.83 | $7,931,546.49 | $87,247,011.34 | $13,856,614.45 | $710,504.96 | $14,920,604.24 | $72,326,407.10 | 10.49% | 82.90% |
| 31 | $87,247,011.34 | $364,089.37 | $8,724,701.13 | $95,971,712.48 | $14,920,604.24 | $764,234.68 | $16,048,928.30 | $79,922,784.18 | 10.50% | 83.28% |
| 32 | $95,971,712.48 | $375,012.05 | $9,597,171.25 | $105,568,883.73 | $16,048,928.30 | $821,197.02 | $17,245,137.36 | $88,323,746.36 | 10.51% | 83.66% |
| 33 | $105,568,883.73 | $386,262.41 | $10,556,888.37 | $116,125,772.10 | $17,245,137.36 | $881,569.99 | $18,512,969.77 | $97,612,802.33 | 10.52% | 84.06% |
| 34 | $116,125,772.10 | $397,850.29 | $11,612,577.21 | $127,738,349.31 | $18,512,969.77 | $945,541.00 | $19,856,361.05 | $107,881,988.25 | 10.52% | 84.46% |
| 35 | $127,738,349.31 | $409,785.79 | $12,773,834.93 | $140,512,184.24 | $19,856,361.05 | $1,013,307.34 | $21,279,454.19 | $119,232,730.05 | 10.52% | 84.86% |
| 36 | $140,512,184.24 | $422,079.37 | $14,051,218.42 | $154,563,402.66 | $21,279,454.19 | $1,085,076.68 | $22,786,610.24 | $131,776,792.43 | 10.52% | 85.26% |
| 37 | $154,563,402.66 | $434,741.75 | $15,456,340.27 | $170,019,742.93 | $22,786,610.24 | $1,161,067.60 | $24,382,419.59 | $145,637,323.34 | 10.52% | 85.66% |
| 38 | $170,019,742.93 | $447,784.00 | $17,001,974.29 | $187,021,717.22 | $24,382,419.59 | $1,241,510.18 | $26,071,713.77 | $160,950,003.46 | 10.51% | 86.06% |
| 39 | $187,021,717.22 | $461,217.52 | $18,702,171.72 | $205,723,888.95 | $26,071,713.77 | $1,326,646.56 | $27,859,577.85 | $177,864,311.09 | 10.51% | 86.46% |
| 40 | $205,723,888.95 | $475,054.05 | $20,572,388.89 | $226,296,277.84 | $27,859,577.85 | $1,416,731.60 | $29,751,363.50 | $196,544,914.34 | 10.50% | 86.85% |
| 41 | $226,296,277.84 | $489,305.67 | $22,629,627.78 | $248,925,905.62 | $29,751,363.50 | $1,512,033.46 | $31,752,702.62 | $217,173,203.00 | 10.50% | 87.24% |
| 42 | $248,925,905.62 | $503,984.84 | $24,892,590.56 | $273,818,496.19 | $31,752,702.62 | $1,612,834.37 | $33,869,521.83 | $239,948,974.35 | 10.49% | 87.63% |
| 43 | $273,818,496.19 | $519,104.38 | $27,381,849.62 | $301,200,345.81 | $33,869,521.83 | $1,719,431.31 | $36,108,057.53 | $265,092,288.28 | 10.48% | 88.01% |
| 44 | $301,200,345.81 | $534,677.52 | $30,120,034.58 | $331,320,380.39 | $36,108,057.53 | $1,832,136.75 | $38,474,871.80 | $292,845,508.59 | 10.47% | 88.39% |
| 45 | $331,320,380.39 | $550,717.84 | $33,132,038.04 | $364,452,418.43 | $38,474,871.80 | $1,951,279.48 | $40,976,869.12 | $323,475,549.30 | 10.46% | 88.76% |
| 46 | $364,452,418.43 | $567,239.38 | $36,445,241.84 | $400,897,660.27 | $40,976,869.12 | $2,077,205.42 | $43,621,313.92 | $357,276,346.35 | 10.45% | 89.12% |
| 47 | $400,897,660.27 | $584,256.56 | $40,089,766.03 | $440,987,426.29 | $43,621,313.92 | $2,210,278.52 | $46,415,849.00 | $394,571,577.29 | 10.44% | 89.47% |
| 48 | $440,987,426.29 | $601,784.25 | $44,098,742.63 | $485,086,168.92 | $46,415,849.00 | $2,350,881.66 | $49,368,514.92 | $435,717,654.00 | 10.43% | 89.82% |
| 49 | $485,086,168.92 | $619,837.78 | $48,508,616.89 | $533,594,785.82 | $49,368,514.92 | $2,499,417.64 | $52,487,770.34 | $481,107,015.48 | 10.42% | 90.16% |
| 50 | $533,594,785.82 | $638,432.92 | $53,359,478.58 | $586,954,264.40 | $52,487,770.34 | $2,656,310.16 | $55,782,513.42 | $531,171,750.98 | 10.41% | 90.50% |