Retirement Withdrawal Calculator
Find out how long your savings will last and calculate your safe withdrawal rate based on the 4% rule.
Your Details
Savings Will Last
-- Years
Until age --First Year Safe Withdrawal
$--
Based on 4% rulePortfolio Balance Over Time
| Year | Age | Start Balance | Withdrawal | Growth | End Balance |
|---|
Frequently Asked Questions
The 4% rule is a rule of thumb used to determine a safe withdrawal rate for retirement savings. It suggests you can safely withdraw 4% of your starting portfolio balance in the first year of retirement, and then adjust that amount for inflation in subsequent years, and your money should last for 30 years.
To maintain your purchasing power, you need to increase your withdrawal amount each year by the rate of inflation. For example, if you withdraw $40,000 in year one and inflation is 3%, you would withdraw $41,200 in year two. Our calculator handles this adjustment automatically.
Withdrawals from Traditional IRAs or 401(k)s are generally subject to income tax. If you need $40,000 to live on, you might need to withdraw $50,000 to cover taxes (assuming a 20% effective tax rate). Roth withdrawals are generally tax-free. This calculator provides a simplified model to demonstrate this impact on how long your portfolio lasts.