Retirement planning
Safe Withdrawal Rate & 4% Rule Calculator
Compare withdrawal rates and explore an inflation-aware retirement drawdown scenario with transparent assumptions.
Planning mode
Works backward from spending and other income to show the withdrawal rate implied by the portfolio.
Withdrawal-rate comparison
These are deterministic scenarios using the same return, inflation, income, and time-horizon assumptions.
| Rate | First-year withdrawal | Target portfolio | Ending balance | Depletion |
|---|---|---|---|---|
| 3% | $30,000 | $1,200,000 | $1,754,334 | Not depleted in projection |
| 3.5% | $35,000 | $1,028,571 | $1,326,400 | Not depleted in projection |
| 4% | $40,000 | $900,000 | $898,465 | Not depleted in projection |
| 4.5% | $45,000 | $800,000 | $470,530 | Not depleted in projection |
| 5% | $50,000 | $720,000 | $42,596 | Not depleted in projection |
Annual projection
| Year | Age | Starting balance | Growth | Other income | Withdrawal | Ending balance |
|---|---|---|---|---|---|---|
| 1 | 65 | $1,000,000 | $49,182 | $24,000 | $36,000 | $1,013,182 |
| 2 | 66 | $1,013,182 | $49,825 | $24,480 | $36,720 | $1,026,287 |
| 3 | 67 | $1,026,287 | $50,464 | $24,970 | $37,454 | $1,039,296 |
| 4 | 68 | $1,039,296 | $51,097 | $25,469 | $38,203 | $1,052,190 |
| 5 | 69 | $1,052,190 | $51,724 | $25,978 | $38,968 | $1,064,947 |
| 6 | 70 | $1,064,947 | $52,344 | $26,498 | $39,747 | $1,077,544 |
| 7 | 71 | $1,077,544 | $52,956 | $27,028 | $40,542 | $1,089,959 |
| 8 | 72 | $1,089,959 | $53,559 | $27,568 | $41,353 | $1,102,165 |
| 9 | 73 | $1,102,165 | $54,150 | $28,120 | $42,180 | $1,114,135 |
| 10 | 74 | $1,114,135 | $54,729 | $28,682 | $43,023 | $1,125,841 |
| 11 | 75 | $1,125,841 | $55,295 | $29,256 | $43,884 | $1,137,253 |
| 12 | 76 | $1,137,253 | $55,846 | $29,841 | $44,761 | $1,148,337 |
| 13 | 77 | $1,148,337 | $56,380 | $30,438 | $45,657 | $1,159,060 |
| 14 | 78 | $1,159,060 | $56,895 | $31,047 | $46,570 | $1,169,386 |
| 15 | 79 | $1,169,386 | $57,390 | $31,667 | $47,501 | $1,179,275 |
| 16 | 80 | $1,179,275 | $57,863 | $32,301 | $48,451 | $1,188,687 |
| 17 | 81 | $1,188,687 | $58,312 | $32,947 | $49,420 | $1,197,578 |
| 18 | 82 | $1,197,578 | $58,734 | $33,606 | $50,409 | $1,205,903 |
| 19 | 83 | $1,205,903 | $59,127 | $34,278 | $51,417 | $1,213,614 |
| 20 | 84 | $1,213,614 | $59,489 | $34,963 | $52,445 | $1,220,658 |
| 21 | 85 | $1,220,658 | $59,818 | $35,663 | $53,494 | $1,226,982 |
| 22 | 86 | $1,226,982 | $60,110 | $36,376 | $54,564 | $1,232,527 |
| 23 | 87 | $1,232,527 | $60,362 | $37,104 | $55,655 | $1,237,234 |
| 24 | 88 | $1,237,234 | $60,572 | $37,846 | $56,768 | $1,241,038 |
| 25 | 89 | $1,241,038 | $60,737 | $38,602 | $57,904 | $1,243,871 |
| 26 | 90 | $1,243,871 | $60,852 | $39,375 | $59,062 | $1,245,661 |
| 27 | 91 | $1,245,661 | $60,915 | $40,162 | $60,243 | $1,246,333 |
| 28 | 92 | $1,246,333 | $60,921 | $40,965 | $61,448 | $1,245,806 |
| 29 | 93 | $1,245,806 | $60,867 | $41,785 | $62,677 | $1,243,995 |
| 30 | 94 | $1,243,995 | $60,748 | $42,620 | $63,930 | $1,240,813 |
Need a change for Safe Withdrawal Rate & 4% Rule Calculator?
About this calculator
Method, formulas, and limits.What this does
Calculates a planning withdrawal rate from portfolio size and spending, then projects how a retirement balance changes under a constant-return, inflation-aware scenario.
Who it is for
People comparing retirement spending plans, the historical 4% rule, and fixed-withdrawal drawdown scenarios before discussing a plan with a qualified adviser.
How it works
The tool subtracts user-entered Social Security or pension income from spending, applies the selected withdrawal rate, and projects monthly growth and withdrawals into an annual summary.
Limitations
This is a deterministic educational estimate, not a safe-rate certification or a success-probability model. It does not model taxes, fees, market volatility, sequence risk, asset allocation, RMDs, or plan rules.
Key calculations
- Required withdrawal rate
- requiredRate = max(0, annualSpending − otherIncome) / portfolioBalance
- First-year withdrawal
- firstYearWithdrawal = portfolioBalance × withdrawalRate
- Inflation-adjusted withdrawal
- withdrawalInYearN = firstYearWithdrawal × (1 + inflation)^(N − 1)
- Monthly balance projection
- endBalance = max(0, startBalance + monthlyGrowth − portfolioWithdrawal)
Reference ranges
- 3%–3.5%
- A lower starting withdrawal rate can provide a larger planning margin, especially for longer or more flexible retirements. It is not a guarantee.
- 4% rule
- A historical planning reference associated with roughly 30-year retirement scenarios and specific historical portfolio assumptions. It should not be treated as universally safe.
- 4.5%–5%
- Higher starting withdrawals may require flexible spending, additional income, a shorter horizon, or a willingness to accept greater uncertainty.
How to use it
- 1.Choose a planning modeUse Safe Withdrawal Rate to work backward from spending, 4% Rule to test the historical reference rate, or Drawdown to enter a fixed withdrawal amount.
- 2.Enter your portfolio and spendingAdd the retirement balance, annual spending, and any annual Social Security or pension income that will offset portfolio withdrawals.
- 3.Set return, inflation, and yearsTest more than one assumption set. Constant returns are a transparent scenario, not a prediction of the market.
- 4.Review the range and projectionCompare 3%, 3.5%, 4%, 4.5%, and 5% reference rates, then inspect the annual balance and withdrawal table.
It is a planning percentage used to estimate how much a portfolio might provide in its first retirement year. No single rate is safe for every person because results depend on time horizon, spending flexibility, taxes, fees, investment mix, and the sequence of market returns.
The 4% rule is a historical retirement-planning reference: withdraw about 4% of the starting portfolio in the first year and generally increase the dollar withdrawal with inflation. The research assumptions and historical period do not guarantee an outcome for a future retiree.
This calculator cannot determine whether 4% is safe for an individual. It shows a transparent scenario so you can compare assumptions; a qualified adviser can help account for taxes, fees, asset allocation, income sources, and changing spending.
When inflation adjustment is enabled, the nominal withdrawal amount rises each year while the real value is intended to remain closer to the first-year purchasing-power target. Inflation can materially change the dollars withdrawn over a long retirement.
No. The projection uses constant assumptions and does not calculate a probability of success. Actual returns, inflation, taxes, fees, healthcare costs, and spending changes can produce a very different result.
Related calculators
More retirement planning tools
401k Calculator
Project 401k growth with employer match, then simulate retirement withdrawals over time.
Retirement Calculator
Project retirement savings, income, spending, and the income gap.
Coast FIRE
See when your portfolio can coast to retirement on its own.
Dave Ramsey Retirement
Project your retirement nest egg using Ramsey's 15% rule, 8% withdrawal rate, and Baby Step 4 principles. Includes pension, Social Security, employer match, and couples mode.