Safe Withdrawal Rate Calculator
Find out how much you can safely pull from your portfolio each year — and how long it will last.
Safe Withdrawal Rate Calculator
Your Retirement
Other income (Social Security, pension) reduces what you pull from the portfolio and is assumed to rise with inflation. Returns are nominal, after fees.
| Year | Withdrawal | Growth | Balance |
|---|---|---|---|
| 1 | $40,000 | $48,000 | $1,008,000 |
| 2 | $41,000 | $48,350 | $1,015,350 |
| 3 | $42,025 | $48,666 | $1,021,991 |
| 4 | $43,076 | $48,946 | $1,027,861 |
| 5 | $44,153 | $49,185 | $1,032,894 |
| 6 | $45,256 | $49,382 | $1,037,020 |
| 7 | $46,388 | $49,532 | $1,040,164 |
| 8 | $47,547 | $49,631 | $1,042,247 |
| 9 | $48,736 | $49,676 | $1,043,187 |
| 10 | $49,955 | $49,662 | $1,042,894 |
| 11 | $51,203 | $49,585 | $1,041,275 |
| 12 | $52,483 | $49,440 | $1,038,231 |
| 13 | $53,796 | $49,222 | $1,033,657 |
| 14 | $55,140 | $48,926 | $1,027,443 |
| 15 | $56,519 | $48,546 | $1,019,470 |
| 16 | $57,932 | $48,077 | $1,009,615 |
| 17 | $59,380 | $47,512 | $997,746 |
| 18 | $60,865 | $46,844 | $983,726 |
| 19 | $62,386 | $46,067 | $967,406 |
| 20 | $63,946 | $45,173 | $948,633 |
| 21 | $65,545 | $44,154 | $927,243 |
| 22 | $67,183 | $43,003 | $903,063 |
| 23 | $68,863 | $41,710 | $875,910 |
| 24 | $70,584 | $40,266 | $845,592 |
| 25 | $72,349 | $38,662 | $811,905 |
| 26 | $74,158 | $36,887 | $774,634 |
| 27 | $76,012 | $34,931 | $733,554 |
| 28 | $77,912 | $32,782 | $688,424 |
| 29 | $79,860 | $30,428 | $638,992 |
| 30 | $81,856 | $27,857 | $584,993 |
Based on your results — what to do next:
Is your nest egg big enough?
Spending $40,000/yr from the portfolio at the 4% rule needs $1,000,000 — compare that to where your savings are headed.
Can Social Security shrink your withdrawals?
Every $1,000 of guaranteed yearly income lowers the portfolio you need by about $25,000. You currently count $0/yr.
See how the portfolio compounds
A 5% return on $1,000,000 adds about $50,000 in the first year before withdrawals.
A safe withdrawal rate is the percentage of your retirement portfolio you can withdraw in year one — then raise with inflation each year — without running out of money over your retirement. The classic 4% rule suggests $40,000 a year per $1 million. This calculator tests your own numbers: it shows your initial withdrawal rate, the maximum sustainable rate for your retirement length, and the balance year by year.
How the Safe Withdrawal Rate Is Calculated
The calculator simulates each year of retirement. You withdraw your spending (less other income), the remaining balance earns the portfolio return, and next year's spending is raised by inflation. This is a fixed-return model — real markets are bumpy, so treat the result as a planning baseline, not a guarantee.
① Initial withdrawal rate
Rate = (Annual spending − Other income) ÷ Portfolio
$40,000 ÷ $1,000,000 = 4.00%
② Yearly balance
Balance(t+1) = (Balance(t) − Withdrawal(t)) × (1 + return)
Withdrawals grow by the inflation rate each year.
③ Maximum sustainable withdrawal
W = Portfolio ÷ Σ [ ((1 + g) ÷ (1 + r))t ] for t = 0 … N−1
The first-year withdrawal that leaves exactly $0 after N years.
| Variable | Meaning | Typical Value |
|---|---|---|
| Portfolio | Invested balance at retirement | $500k – $3M |
| g | Inflation rate | 2–3% |
| r | Nominal portfolio return | 4–7% depending on stock/bond mix |
| N | Years in retirement | 30 (age 65–95); 40+ for early retirees |
| Other income | Social Security, pension, rental | Reduces portfolio withdrawals |
Worked Example — $1,000,000, 30 years, 5% return, 2.5% inflation
- Maximum sustainable first-year withdrawal: $46,262 (4.63% of the portfolio)
- Spending $40,000 (the 4% rule) is under that limit, so the money lasts the full 30 years
- Spending $50,000 (5%) exceeds it — the portfolio runs out before year 30
- Portfolio needed for $40,000 at the 4% rule: $1,000,000 ($40,000 × 25)
💡 Pro-Tip
Sequence of returns matters more than the average. Poor returns in the first five years of retirement do far more damage than the same returns later, because you are selling shares while prices are low. Many planners keep one to two years of spending in cash or short-term bonds and use a flexible rule — spend less after a down year — which can allow a start rate above 4%.
Safe Withdrawal Rate Calculator FAQ
What is a safe withdrawal rate?
It is the percentage of your starting portfolio you can withdraw in the first year of retirement, then increase with inflation each year, with a high chance your money lasts. The commonly cited figure is 4% for a 30-year retirement.
Is the 4% rule still safe in 2026?
It was based on historical U.S. data for 30-year retirements. Many planners use 3.3–3.8% for 40+ year retirements or when starting valuations are high, and 4–5% when spending is flexible. Use this calculator to see how your own return and inflation assumptions change the answer.
How much do I need to retire with the 4% rule?
Multiply your annual spending (after Social Security and pensions) by 25. Spending $60,000 a year with $24,000 of Social Security means a $36,000 withdrawal, which needs about $900,000.
Should withdrawals be adjusted for inflation?
The 4% rule raises the dollar withdrawal each year with inflation so your purchasing power stays level. If you skip raises in down markets, your portfolio lasts longer.