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Retirement
Safe Withdrawal Rate Calculator
Project how a portfolio evolves when you withdraw a starting rate each year, adjusted for inflation, against a constant expected return.
Assumptions
$
%
%
%
yrs
Year-one withdrawal
$40,000.00
4% of $1,000,000.00
Ending balance
$1,326,715.16
Survives a 30-year horizon
Starting monthly income
$3,333.33
Outcome
Survives
Balance remains positive at the end
Projection
- Portfolio balance$1.3M
Educational estimate only — not financial advice. Markets, taxes, and fees can change outcomes.
FAQ
- What is a safe withdrawal rate?
- It is the percentage of your starting portfolio you withdraw in year one (then often adjusted for inflation). The well-known 4% rule is one researched starting point for ~30-year retirements.
- Is this a Monte Carlo simulation?
- No. This tool uses a deterministic path with constant return and inflation. It is useful for intuition and comparisons, not for modeling market crashes.
- Should early retirees use 4%?
- Many FIRE planners use a lower starting rate (around 3–3.5%) for 40–50+ year horizons. Raise or lower the rate here to see how sensitive the ending balance is.