Safe Withdrawal Rate Calculator
Test whether a portfolio can support a withdrawal rate for a set number of years, with withdrawals rising with inflation.
The 4% rule says you can withdraw 4% of your portfolio in year one, raise it with inflation each year, and have a good chance of lasting 30 years.
This calculator lets you test that rule or any other with your own numbers.
How it works
Each year the withdrawal is taken out, then the remainder grows at the return rate. The withdrawal rises with inflation each year.
If the balance hits zero the calculator tells you which year it happened.
The formula
Later years = previous withdrawal x (1 + inflation).
Tips
- A steady return is a simplification. Poor returns in the first few years do the most damage.
- Flexibility helps. Cutting spending a little in bad years greatly improves survival odds.
Frequently asked questions
Is 4% still safe?
Many researchers now suggest 3.5% to 4% for a 30 year retirement. Longer retirements call for less.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.