Safe Withdrawal Rate Calculator
Calculate safe annual withdrawal from retirement savings using the 4% rule.
Enter portfolio size to see sustainable income and longevity.
The Safe Withdrawal Rate (SWR) is the percentage of your retirement savings you can withdraw each year with a high probability of not running out of money during your lifetime.
The 4% Rule: The most well-known guideline, based on the 1994 Trinity Study, states that withdrawing 4% of your initial portfolio balance (adjusted for inflation each year) has historically survived 30 years of retirement in about 95% of scenarios.
Annual withdrawal = Portfolio value × Withdrawal rate
What each variable means:
- Portfolio value — your total retirement savings at the start of retirement
- Withdrawal rate — the percentage you take out each year (typically 3–5%)
- Retirement duration — how many years you need the money to last
- Inflation rate — annual increase in cost of living, which erodes purchasing power
- Expected return — average annual investment return on remaining portfolio
Suggested withdrawal rates by retirement length:
| Retirement Length | Conservative | Moderate | Aggressive |
|---|---|---|---|
| 20 years | 4.5% | 5.0% | 5.5% |
| 25 years | 4.0% | 4.5% | 5.0% |
| 30 years | 3.5% | 4.0% | 4.5% |
| 35 years | 3.0% | 3.5% | 4.0% |
| 40 years | 2.8% | 3.2% | 3.7% |
When to use this calculator:
- Planning how much to save for retirement
- Deciding when you can afford to retire
- Determining annual retirement income from savings
- Evaluating whether your current savings are sufficient
Practical example: A retiree with $1,000,000 in savings using a 4% withdrawal rate would take out $40,000 in the first year. If inflation is 3%, the second year withdrawal becomes $41,200, and so on.
Tips:
- Lower withdrawal rates (3–3.5%) are safer for early retirees (retiring before 60).
- Consider reducing withdrawals during market downturns to preserve capital.
- Social Security, pensions, and other income sources reduce the amount needed from savings.
- Keep 1–2 years of expenses in cash or low-risk investments to avoid selling stocks during crashes.
- The 4% rule assumes a balanced portfolio (50–75% stocks, 25–50% bonds).