4% Rule Calculator
Calculate safe withdrawal rates for retirement. Based on the Trinity Study, determine how much you can withdraw annually without running out of money.
Your Information
Your Results
Safe Annual Withdrawal
$40,000
$3,333/month
Portfolio Needed for Expenses
$1,000,000
To support $40,000/year
Success Probability
95%
Chance of not running out over 30 years
Inflation Impact
$97,090
Your $40,000 in 30 years
✓ Your portfolio can support your desired lifestyle!
Understanding the 4% Rule
What is it?
The 4% rule suggests you can withdraw 4% of your portfolio in year one of retirement, then adjust for inflation each year, with a 95% success rate over 30 years.
The Trinity Study
Based on historical data from 1926-1995, researchers found that a 4% withdrawal rate from a 50/50 stock/bond portfolio rarely depleted in 30 years.
Modern Considerations
Some experts suggest 3.5% for extra safety, while others say 5% is fine with flexibility. Consider your risk tolerance and retirement length.