Safe Withdrawal Rate Calculator
See the annual and monthly income a portfolio can sustain at a chosen withdrawal rate, and the portfolio needed for a target income.
How it works
Annual withdrawal = portfolio × rate · Portfolio needed = desired income ÷ rate
A safe withdrawal rate is the share of your starting portfolio you can draw each year — rising with inflation — with a high chance the money lasts through retirement. The classic 4% rule came from historical studies of 30-year retirements; it implies a portfolio of 25× your spending. It is a starting point, not a promise: a long retirement, a rough early market, high fees or heavy stock exposure can all argue for a lower rate.
Worked example
A $1,000,000 portfolio at a 4% withdrawal rate supports $40,000 a year, or about $3,333 a month. Working backward, funding $50,000 a year at the same 4% rate would require a $1,250,000 portfolio.
Frequently asked questions
Is 4% still safe?
It held up across most historical 30-year periods, but critics note today’s valuations and longer retirements may warrant 3–3.5%. Flexibility — trimming withdrawals in down years — improves the odds more than any single fixed rate.
Does the rate adjust for inflation?
In the classic rule, you take the rate on the starting balance and then increase the dollar amount each year with inflation. This calculator shows the first-year figure; later years rise with prices.
What are the main caveats?
Sequence-of-returns risk (bad early years), longer-than-30-year horizons, taxes, fees and a too-conservative or too-aggressive asset mix. Treat the rate as a guideline you revisit, not a set-and-forget rule.
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Educational estimate, not investment or tax advice. Returns are never guaranteed and past performance does not predict the future. Confirm with a licensed advisor.