4% Rule Calculator
Estimate a safe retirement withdrawal using the 4% rule, with annual and monthly amounts. Free and accurate.
Independently verified for accuracy
Calculator by Toolsloft ↗- Annual withdrawal
- 40000
- Monthly withdrawal
- 3333.33
This calculator applies the 4 percent rule to your retirement portfolio to estimate how much you can withdraw in the first year, both annually and monthly. Adjust the rate to test a more conservative or aggressive plan.
How this is calculated
The 4 percent rule, based on the Trinity study, suggests withdrawing 4 percent of your portfolio in the first year of retirement, then adjusting that dollar amount for inflation each year. First-year withdrawal is the portfolio value times the rate; the monthly figure is that annual amount divided by twelve. It is a planning guideline, not a guarantee, and does not account for taxes, fees, or market sequence risk.
How to use
- Enter your total retirement portfolio value.
- Set the withdrawal rate as a percentage (4 percent is the classic figure).
- Read the estimated annual and monthly withdrawal amounts.
Examples
- $1,000,000 at 4%:
$40,000/year - $750,000 at 3.5%:
$26,250/year
FAQ
- What is the 4 percent rule?
- It is a retirement planning guideline from the Trinity study. You withdraw 4 percent of your portfolio in the first year, then adjust that dollar amount for inflation each year, with the aim of the money lasting about 30 years.
- Is a 4 percent withdrawal rate safe, or should I use a different rate?
- The 4 percent figure was based on historical U.S. market returns and a roughly 30-year horizon. Some planners prefer a lower rate such as 3 or 3.5 percent for a longer retirement or more caution, while others accept a higher rate if they can stay flexible. It is a starting point, not a guarantee.