Legacy Wealth Projection Calculator
After funding your own retirement spending, how much will remain in your portfolio to pass on to heirs or charity? This calculator projects the nominal value of your portfolio at the end of your retirement period, showing the trajectory year by year. It accounts for portfolio growth at your assumed rate and annual withdrawals (optionally adjusted for inflation each year). A table shows the balance at each milestone year so you can see exactly how the legacy evolves over time.
Legacy projection formula
Withdrawal(y) = First-year withdrawal * (1 + inflation)^(y-1)
Balance(y) = (Balance(y-1) - Withdrawal(y)) * (1 + annual return)
Legacy = Balance after year N (if positive)
Total withdrawn = sum of all Withdrawal(y) values
The withdrawal is taken at the start of each year before applying the return, which is the conservative assumption matching the standard SWR research methodology.
Legacy planning considerations
- Roth IRA balances pass to heirs tax-free; traditional IRA balances are subject to income tax when heirs withdraw.
- For 2025, the federal estate tax exemption is $13.61 million. Amounts above this threshold are taxed up to 40%.
- Life insurance can be a tax-efficient way to guarantee a specific legacy amount independent of portfolio performance.
- Charitable remainder trusts (CRTs) allow you to donate assets to charity while retaining income for life.
- Consider discussing legacy goals with a financial planner and estate attorney to integrate your investment, tax, and estate planning strategies.
Legacy wealth planning: frequently asked questions
What is a legacy wealth projection?
A legacy wealth projection estimates how much of your investment portfolio will remain at the end of your retirement to pass on to heirs or charity. It models your starting balance growing at an assumed rate while being reduced by annual withdrawals over your expected retirement period.
How much will inflation reduce my legacy?
If your withdrawals increase with inflation each year (the standard inflation-adjusted withdrawal approach), the real value of the legacy may be preserved relative to today's dollars but the nominal value may be much larger. This calculator shows nominal values; to estimate real purchasing power, divide the projected legacy by (1 + inflation rate)^years.
Does leaving a legacy change my safe withdrawal rate?
Yes. If you want a high probability of leaving a significant legacy, you should use a lower withdrawal rate (3-3.5% instead of 4%). If leaving a legacy is not a priority, you can use a slightly higher rate. The Monte Carlo calculator on this site can show the distribution of legacy values under different scenarios.
What are the estate tax implications of a large legacy?
For 2025, the federal estate tax exemption is $13.61 million per individual ($27.22 million for married couples). Estates below these thresholds owe no federal estate tax. Amounts above the exemption are taxed at up to 40%. Many states have their own estate or inheritance taxes with lower exemptions.
Should I factor in required minimum distributions when projecting my legacy?
Yes. Traditional IRA and 401(k) accounts are subject to RMDs starting at age 73, which may be larger than your voluntary spending. This calculator uses a single annual withdrawal amount; for accounts with RMDs, the actual withdrawal may be forced to be larger, which would reduce the projected legacy.
Official sources
- IRS: Estate Tax.
- IRS Revenue Procedure 2024-40: 2025 Estate Tax Exemption Amounts.
- Social Security Administration: Period Life Table (for retirement duration planning).
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.