Safe Withdrawal Rate Calculator

It is a guideline that withdrawing 4 percent of your starting portfolio in year one, then adjusting that dollar amount for inflation each year, has historically lasted about 30 years in past US market data. This tool shows that first-year 4 percent figure.

From target income divides your desired annual income by the withdrawal rate as a decimal. At 4 percent that is income times 25, sometimes called the 25x rule, so 60,000 a year needs a 1,500,000 portfolio.

It is simply the annual withdrawal divided by 12 and rounded to the nearest cent. At 40,000 a year that is 3,333.33 a month, so the twelve monthly draws add up to the yearly total apart from a rounding cent.

No. It is a rule of thumb based on historical US stock and bond returns, not a guarantee. Lower rates such as 3 to 3.5 percent are more conservative for early retirements or long horizons, while some retirees flex their spending instead of holding a fixed rate.

No. It shows the first-year gross withdrawal before any inflation adjustment and before investment fees or income taxes. Treat the number as a planning starting point, not your spendable take-home amount.

No. It is a straight-line rate calculation, so it does not simulate market ups and downs or the sequence-of-returns risk of a bad early market. For that, use a historical or Monte Carlo retirement simulator alongside this estimate.

There is no single right answer. Longer retirements, heavy stock exposure or a desire for a safety margin argue for a lower rate, while shorter horizons or extra income sources like a pension can support a higher one. Try a few rates to see the range.

Yes. All calculations run in your browser and no portfolio value, income figure or result is uploaded or saved.