Safe Withdrawal Rate Calculator
Use the 4% rule (or any rate) in both directions. Enter a portfolio to see the safe annual and monthly withdrawal, or work backward from the yearly income you want to the nest egg you need.
How to use the safe withdrawal rate calculator
- Enter your portfolio value and a withdrawal rate, such as 4 percent.
- Read the safe annual and monthly withdrawal amounts.
- Or switch to reverse mode to find the portfolio needed for a target income.
Examples
1,000,000 at 4 percent
Portfolio 1,000,000, rate 4%
Withdraw 40,000 per year or 3,333.33 per month
Frequently asked questions
What is the 4% rule?
It is a guideline that withdrawing 4 percent of your starting portfolio in year one, then adjusting for inflation, has historically lasted about 30 years.
How do I find the portfolio I need?
Divide your desired annual income by the withdrawal rate as a decimal. At 4 percent that is income times 25, sometimes called the 25x rule.
Is 4 percent always safe?
No. It is a rule of thumb based on past US market history. Lower rates like 3 to 3.5 percent are more conservative for long retirements.
Does this account for inflation or taxes?
No. It shows the first-year withdrawal before inflation adjustments and before taxes. Treat the result as a starting estimate.
Is my data private?
Yes. All calculations run in your browser and nothing is uploaded or saved.
Related tools
FIRE Calculator
Work out your FIRE number and years to financial independence. Enter expenses, savings, contributions and return to see lean, regular and fat FIRE targets.
Retirement Calculator
Project your retirement savings from your current pot plus monthly contributions. See the corpus at retirement, total invested and growth from returns.
Retirement Drawdown Calculator
See how long your retirement savings last. Model yearly withdrawals with inflation and returns to find the depletion year and ending balance.
401(k) Calculator
Project your 401(k) balance with employer match. Enter salary, contribution, match and return to see your contributions, the match and growth over time.
50/30/20 Budget Calculator
Split your monthly take-home pay with the 50/30/20 rule. See dollar amounts for needs, wants and savings each month and year. Free and private.
Amortization Schedule Calculator
Build a full loan amortization schedule. Enter the amount, rate and term to see each month's payment, principal, interest and balance, plus total interest.