Retirement Withdrawal Calculator
Estimate how much you can safely withdraw each year from your retirement savings, and how long the money will last. The calculator also models the effect of continued investment growth during retirement.
Enter your retirement details
Enter your details and press Calculate withdrawals.
The 4% rule and its caveats
The "4% rule" comes from the Trinity Study (1998), which found that withdrawing 4% of a balanced portfolio in year one, then increasing the amount each year with inflation, historically survived a 30-year retirement with a high success rate.
Caveats: the rule is a planning heuristic, not a guarantee. Low future returns, high inflation or a longer retirement (40+ years) may require a lower rate. Many planners now use 3.5% for retirements over 30 years.
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Frequently asked questions
The calculator simulates a fixed real (inflation-adjusted) withdrawal each year with the remaining balance growing at the return rate. The portfolio lasts longer if the withdrawal rate is lower than the return rate; it depletes if the withdrawal rate exceeds the return rate over the long term.
Fixed withdrawals (indexed to inflation) are simple but risky in bad markets. Variable strategies — like the "guardrails" approach — cut withdrawals after market declines and increase them after gains, greatly improving the odds of not running out of money. Many retirees use a hybrid: cover essential expenses with guaranteed income (state pension, annuities) and withdraw variable amounts for discretionary spending.