4% Rule Retirement Calculator
Retirement Portfolio
4% is traditional, 3% is conservative
Annual Expenses
For reference: 4% rule suggests this should match your first year withdrawal
Assumptions
How to Use This Calculator
The 4% rule suggests you can safely withdraw 4% of your retirement savings in the first year, then adjust that amount for inflation each year, with a high probability your money will last 30 years.
How it works:
- Year 1: Withdraw 4% of total savings (e.g., $40,000 from $1M)
- Year 2+: Adjust previous year's withdrawal for inflation
- Portfolio continues to grow with remaining balance
- Based on historical data with 50/50 stock/bond portfolio
⚠ Important: This is a guideline, not a guarantee. Consider working with a financial advisor for personalized retirement planning.
Use this 4% rule retirement calculator to compute personal finance results from your inputs.
Formula
Safe withdrawal year 1 = Savings × 0.04 Withdrawal year N = Year 1 withdrawal × (1 + Inflation)^N Portfolio value year N = (Portfolio previous year - Withdrawal) × (1 + Return) Success = Portfolio > $0 for all 30 years Alternative rates: 3% (conservative), 5% (aggressive)