4% Rule Calculator
Calculate how much you can safely withdraw from your retirement savings
What Is the 4% Rule?
The 4% rule states that you can withdraw 4% of your retirement portfolio in the first year of retirement, then adjust that amount for inflation each year, and your money should last at least 30 years.
Example: With a $1M portfolio, you'd withdraw $40,000 in year one. If inflation is 3%, you'd withdraw $41,200 in year two, $42,436 in year three, and so on.
Traditional: 4% | Conservative: 3% | Aggressive: 5%
Conservative: 5-6% | Moderate: 7-8% | Aggressive: 9-10%
Historical average: 3%
Should You Use the 4% Rule?
The 4% rule is a starting point, not a rigid law. It was based on historical market data and assumes a 30-year retirement with a balanced portfolio (60% stocks, 40% bonds).
Consider a lower rate (3-3.5%) if you're retiring early, expect lower returns, or want extra security.
You might use a higher rate (4.5-5%) if you have other income sources, flexible spending, or a shorter retirement timeline.
Quick heads up: These calculators are designed to help you make smarter financial decisions, but they're meant for educational purposes only. Everyone's financial situation is unique, so consider this a helpful starting point rather than personalized financial advice. For decisions specific to your circumstances, it's always a good idea to consult with a qualified financial professional.