Safe Withdrawal Rate Calculator
The Safe Withdrawal Rate Calculator turns a retirement balance and a chosen withdrawal rate into the annual and monthly income you can plan to take out, using the classic 4% rule as a reference point.
What this means
The 4% rule says you can withdraw 4% of your portfolio in the first year of retirement, adjusting for inflation, with a strong historical chance it lasts 30 years. Your number is balance × rate.
How we calculate it
Formula
Annual withdrawal = balance × rate; monthly = annual ÷ 12.Worked example
A $1,000,000 portfolio at a 4% withdrawal rate:
- 1Annual = 1,000,000 × 4% = $40,000
- 2Monthly ≈ $3,333
Important assumptions
- Withdrawals grow with inflation over retirement.
- The 4% figure is historical, not guaranteed.
Frequently asked questions
Is 4% still a safe number?
It remains a widely cited baseline, though some advisers suggest 3–3.5% for more conservative plans or earlier retirements. Personalize based on your horizon and spending flexibility.
How does the rule account for inflation?
In the classic version, the first-year amount is fixed and then grows with inflation each year. Here we show the simple first-year amount.