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4 Percent Rule Calculator

Work out 4 percent rule instantly with clear inputs, formula shown and shareable results.

About 4 Percent Rule Calculator

The 4% rule takes 4% of the starting portfolio in year one and then raises that amount with inflation, regardless of market moves. It came from historical US data over 30-year retirements and implies a portfolio of 25 times annual spending.

Formula

Safe withdrawal

Year 1 = portfolio × rate; Year k = year 1 × (1+inflation)^(k-1)

Worked example

With the default values below, 4 Percent Rule Calculator returns First Year Withdrawal of $1,000,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Portfolio Valueminimum 0
25,000,000
Initial Withdrawal Rateaccepts 1–10 %
4 %
Inflation Rateaccepts 0–100 %
3 %

Results

First Year Withdrawal
$1,000,000.00
Monthly Income
$83,333.33
Withdrawal In Year 10 After Indexing
$1,304,773.18
Portfolio As A Multiple Of Spending
25.00

Step by step

  1. 1Values used
  2. 2Safe withdrawal
  3. 3First Year Withdrawal= 1,000,000.00
  4. 4Monthly Income= 83,333.33
  5. 5Withdrawal In Year 10 After Indexing= 1,304,773.18
  6. 6Portfolio As A Multiple Of Spending= 25.00

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Is 4% guaranteed to work?

No. It survived most historical 30-year windows but not all, and it assumed a specific asset mix and low fees.

What raises the safe rate?

Flexibility. Trimming withdrawals after poor years materially improves the odds compared with a rigid rule.

Related Calculators

4 Percent Rule Calculator – Calculate First Year Withdrawal