4% Rule Calculator
Determine your safe withdrawal rate and retirement savings target using the famous 4% rule. See how long your portfolio will last and what withdrawal rate is truly sustainable.
Safe withdrawal • Retirement planning • Portfolio longevity • 100% Free📊 Your Retirement Details
Enter your portfolio, spending, and assumptions to evaluate the 4% rule for your retirement.
📊 Your 4% Rule Analysis
See your safe withdrawal amount, portfolio longevity, and key retirement metrics.
📊 At 4% Withdrawal
📊 At Your Current Spending
Based on 7% return, 3% inflation, 30 year retirement.
4% Rule Visualized
See your portfolio balance over time and how different withdrawal rates affect your retirement longevity.
📈 Portfolio Balance Over Time
📊 Withdrawal Rate Comparison
4% Rule by the Numbers
See how different portfolio sizes and spending levels affect your safe withdrawal rate and longevity.
| Portfolio Size | Annual Spending | Withdrawal Rate | Longevity (Years) | 4% Rule Status |
|---|---|---|---|---|
| $1,000,000 | $40,000 | 4.0% | 30+ | ✅ Safe |
| $1,000,000 | $50,000 | 5.0% | ~22 | ⚠️ Moderate |
| $1,000,000 | $60,000 | 6.0% | ~16 | ⚠️ Risky |
| $1,500,000 | $60,000 | 4.0% | 30+ | ✅ Safe |
| $2,000,000 | $80,000 | 4.0% | 30+ | ✅ Safe |
| $2,000,000 | $100,000 | 5.0% | ~25 | ⚠️ Moderate |
Assumes 7% expected return, 3% inflation, and inflation-adjusted withdrawals. Results are estimates based on historical averages.
4% Rule Insights
Key concepts to understand about the 4% rule and safe withdrawal rates.
What Is the 4% Rule?
The 4% rule was developed by financial advisor Bill Bengen in 1994. It suggests that retirees can withdraw 4% of their portfolio in the first year of retirement, then adjust for inflation annually, with a high probability of not running out of money over 30 years.
Why 4% Works
Historical data shows that a portfolio of 50-75% stocks and the rest bonds has survived 30-year retirements with a 4% withdrawal rate in 95%+ of historical periods. The rule accounts for market volatility and inflation.
Adjusting the Rate
A 3-3.5% withdrawal rate is considered ultra-safe for longer retirements (40+ years). A 5%+ rate significantly increases the risk of portfolio depletion, especially during market downturns early in retirement.
Flexibility Matters
While the 4% rule provides a baseline, successful retirees often adjust spending based on market performance. Reducing withdrawals during market downturns can dramatically improve portfolio longevity.
Frequently Asked Questions
Common questions about the 4% rule and how this calculator works.
