Your inputs

Model your income

Portfolio value

Total retirement savings you plan to draw from, up to $1 trillion.

Advanced assumptions

Withdrawal rate

The 4% rule is the common default. Use a rate from 0.1% through 20%.

Your inputs are calculated locally and are not stored.

Annual income at your withdrawal rate$40,000.00

Withdrawing 4.00% of a $1,000,000.00 portfolio in the first year.

Monthly income: $3,333.33
Portfolio value: $1,000,000.00
Withdrawal rate: 4.00%

Formula & methodology

How the withdrawal amount is figured

The 4% rule is a widely-cited rule of thumb, popularized by the 1990s Trinity Study, suggesting that withdrawing about 4% of a portfolio in the first year of retirement — then adjusting for inflation each year after — has historically had a high chance of lasting roughly 30 years. This calculator shows only the first-year income implied by the rate you choose. It is a rule of thumb, not a guarantee that your money will last.

Annual income = Portfolio value × (Withdrawal rate ÷ 100)
Monthly income = Annual income ÷ 12

Portfolio value: Total savings you draw from
Withdrawal rate: First-year withdrawal percentage (4% by default)

Worked example

$1,000,000 portfolio at a 4% withdrawal rate

Suppose you have a $1,000,000 portfolio and apply the classic 4% withdrawal rate. The first-year annual income is $40,000, which works out to $3,333.33 per month. In later years the 4% rule would adjust that dollar amount for inflation rather than recalculating it from the current balance.

This is an educational calculation based only on the values you provide. It does not model investment returns, sequence-of-returns risk, taxes, or inflation, and it is not financial advice.

Assumptions

What this calculator assumes

The result is the first-year withdrawal only; it does not project the portfolio forward or test whether it lasts.
The 4% rule is a historical rule of thumb, not a guarantee for any individual or market environment.
Investment returns, market volatility, and sequence-of-returns risk are not modeled.
Taxes, fees, and inflation adjustments are excluded.
Money values are rounded to the nearest cent for display.

Common questions

Safe withdrawal FAQ

Is the 4% rule guaranteed to work?

No. It is a widely-cited rule of thumb based on historical US market data over 30-year retirements. Future returns, inflation, your time horizon, and the order in which returns arrive can all change the outcome, so treat it as a starting point rather than a promise.

Should I use a different withdrawal rate?

Many planners consider a range — often somewhere between 3% and 5% — depending on retirement length, flexibility, and risk tolerance. A lower rate is more conservative and more likely to last; a higher rate provides more income but raises the risk of running short.

Primary sources

Sources and review notes

Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.