Retirement Withdrawal Calculator
Find safe withdrawal amounts from a nest egg.
Default 4%
Results update as you type.
How it works
How much can you safely spend from your retirement savings each year? This calculator applies the widely used withdrawal-rate approach. You enter your portfolio value and a withdrawal rate, defaulting to the well-known 4 percent, and it returns your annual and monthly retirement income. The 4 percent rule comes from research suggesting that withdrawing 4 percent of your portfolio in the first year of retirement, then increasing that dollar amount for inflation each year, has historically had a high chance of lasting about 30 years across various market conditions. So a $1 million portfolio would support $40,000 in the first year, or about $3,333 a month. This gives retirees a simple starting point for planning how large a nest egg they need or how much income their savings can provide. You can adjust the rate: a lower rate, such as 3 or 3.5 percent, is more conservative and better for long retirements or uncertain markets, while a higher rate provides more income but raises the risk of running out. The rule is a guideline, not a guarantee; actual sustainability depends on market returns, especially early in retirement, inflation, fees, how long you live, and whether you adjust spending in downturns. Use it alongside broader retirement planning. Enter your portfolio value and withdrawal rate to compute your retirement income.
Annual withdrawal = portfolio value × withdrawal rate
The annual withdrawal is your portfolio value multiplied by the withdrawal rate. The 4 percent rule suggests withdrawing 4 percent of your starting portfolio in the first year of retirement, then adjusting for inflation, as a level historically likely to last about 30 years. The monthly figure is the annual amount divided by twelve.
Source:Retirement planning
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter portfolio value.
- 2
Adjust the options
Adjust withdrawal rate if they apply — sensible defaults are already set.
- 3
Read your result
Annual withdrawal updates instantly as you type — no button to press.
Frequently asked questions
What is the 4% rule?
The 4 percent rule is a retirement guideline suggesting you withdraw 4 percent of your portfolio in your first year of retirement, then adjust that amount for inflation each year. Research found this rate historically had a high probability of lasting about 30 years, making it a common starting point for retirement income planning.
How much income will my savings provide?
Multiply your portfolio value by your withdrawal rate for the annual income, then divide by twelve for monthly. At the 4 percent rate, a $1 million portfolio provides $40,000 a year, or about $3,333 a month. The calculator computes both from your portfolio value and chosen rate.
Is 4% still a safe withdrawal rate?
The 4 percent rule remains a popular benchmark, but some analysts suggest lower rates like 3 to 3.5 percent for longer retirements, lower expected returns, or greater safety. Others argue flexibility, spending less in down years, allows higher rates. The right rate depends on your time horizon, market outlook, and willingness to adjust.
What affects how long my money lasts?
Key factors include your withdrawal rate, investment returns, especially in the early years of retirement, inflation eroding purchasing power, fees, how long you live, and whether you adjust spending during market downturns. Poor returns early in retirement are especially damaging. Flexibility and a conservative rate improve the odds your savings last.
Does this account for inflation and market swings?
No, this calculator gives a simple snapshot of income at a chosen withdrawal rate. The 4 percent rule itself assumes you raise withdrawals for inflation and that returns average out over time, but this tool does not model year-by-year inflation or market volatility. Use it as a planning starting point, not a complete retirement projection.