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Finance & money·Investment

Safe Withdrawal Rate Calculator

Calculate annual and monthly retirement income at any withdrawal rate. Enter portfolio, return, inflation, and years to project whether your nest egg will last.

Added Jun 16, 2026

Quick examples

Input

Result

Enter a value for retirement portfolio value to see your result.

How it works

Calculates how much you can safely withdraw each year from your retirement portfolio — in both annual and monthly amounts — based on your withdrawal rate, expected return, inflation, and retirement duration.

Formula

Annual Withdrawal = Portfolio × Withdrawal Rate

Portfolio
Total retirement savings at retirement start
Withdrawal Rate
% of portfolio withdrawn in Year 1 (4% is the classic benchmark)
Real Return
Annual return minus inflation — drives whether portfolio grows or shrinks in real terms

Step by step

  1. 01Enter your total retirement portfolio value.
  2. 02Choose a safe withdrawal rate (4% is the traditional benchmark from the Trinity Study).
  3. 03Set expected annual portfolio return and inflation rate to compute real return.
  4. 04Enter how many years you expect to be in retirement.
  5. 05The calculator shows your Year 1 withdrawal amount and projects whether the portfolio survives the full period.

Examples

$1M portfolio, 4% SWR, 7% return, 3% inflation, 30 years

At a 4% withdrawal rate, a $1M portfolio yields $40,000/year ($3,333/month) in Year 1. With 7% nominal return and 3% inflation, real return is 4% — the portfolio historically survives 30+ years.

Inputs

Retirement portfolio value:
1000000
Safe withdrawal rate:
4
Expected annual portfolio return:
7
Retirement duration:
30
Expected inflation rate:
3

Result

Annual withdrawal (Year 1):
40000
Note: The 4% rule comes from the 1994 Trinity Study based on US historical returns. It has historically survived 30-year retirements with a 60/40 stock-bond portfolio. For 40–50 year retirements (early retirees), many planners recommend 3–3.5% to reduce sequence-of-returns risk. This calculator uses a simplified projection. Actual outcomes depend on market sequence, fees, and lifestyle changes.

Related guides

  • How to Calculate Your Retirement Savings Goal

    Learn how to estimate the savings needed for retirement using the 4% rule, how to factor in inflation, Social Security or pension income, and how to close a.

  • What Is the FIRE Number?

    Everything you need to know about the FIRE number -- the 4% rule, how to calculate your target, FIRE variants (lean, fat, barista, coast), and what to include.

  • What Is the 4% Rule? Safe Withdrawal Rates

    The 4% rule: withdraw 4% of your portfolio annually and it lasts 30+ years. Covers the Trinity Study, sequence-of-returns risk, and when to lower the rate.

Frequently asked questions

What is the safe withdrawal rate?

The safe withdrawal rate (SWR) is the percentage of your retirement portfolio you can withdraw each year without running out of money over a defined period. The most widely cited figure is 4%, based on the 1994 Trinity Study which analysed US historical stock and bond returns over 30-year retirements.

Is 4% still safe?

The 4% rule has held up historically, but some researchers now suggest 3.3–3.5% given lower expected bond returns, higher valuations, and early retirees needing 40+ year horizons. For a 30-year retirement with a diversified portfolio, 4% remains a widely used starting point.

What is sequence-of-returns risk?

Sequence-of-returns risk is the danger of experiencing poor market returns early in retirement while withdrawing from the portfolio. Even if average long-run returns are fine, bad early years can permanently deplete the portfolio before markets recover. This is why early retirement requires a more conservative withdrawal rate.

Should I adjust withdrawals for inflation?

Traditional implementations of the 4% rule adjust the withdrawal amount each year for inflation (so purchasing power stays constant). This calculator shows your Year 1 withdrawal; in practice, increase it by your inflation rate each year to maintain the same real spending.