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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.