Safe Withdrawal Rate Calculator
Plan your retirement withdrawals with confidence. See how different withdrawal rates affect your portfolio over time and whether your money will last.
Retirement Plan
Configure your withdrawal strategy.
Total investment portfolio at retirement
Annual withdrawal as % of initial portfolio
How long retirement needs to last
Average annual nominal return
Average annual inflation
Annual Withdrawal
$40,000
Monthly Income
$3,333
Portfolio Lasts
30 years
Runs out!
Status
At Risk
Depleted at year 30
Warning: Your portfolio runs out after 30 years at a 4% withdrawal rate. Consider lowering your withdrawal rate or increasing your portfolio.
Portfolio Balance Over Time
Understanding Safe Withdrawal Rates
The safe withdrawal rate (SWR) is the percentage of your portfolio you can withdraw annually in retirement, adjusted for inflation, without running out of money. The famous 4% rule comes from the Trinity Study, which analyzed historical market data over rolling 30-year periods.
The 4% Rule Explained
Withdraw 4% of your portfolio in year one of retirement, then adjust that dollar amount for inflation each subsequent year. Historically, this has been sustainable for 30-year retirement periods with a high success rate. For longer retirements, a lower rate like 3.5% may be more appropriate.
Factors That Affect Your SWR
- Time horizon: Longer retirements need lower rates
- Asset allocation: Stock/bond mix affects returns and volatility
- Flexibility: Willingness to cut spending in downturns helps
- Other income: Social Security, pensions reduce needed withdrawals