4% Rule Calculator
See how much you can safely spend from your investments each year. Enter your portfolio, pick a withdrawal rate, and get your yearly and monthly income in seconds.
| Rate | Per year | Per month |
|---|
How the 4% rule calculator works
The 4% rule says you can withdraw 4% of your invested portfolio in your first year of retirement, then adjust that dollar amount for inflation each year — and historically the money lasted 30+ years (the Trinity Study). This calculator does that first step instantly: enter your portfolio and it shows 4% — or any rate you choose — as a yearly and a monthly figure. Lower the rate for a longer or more cautious retirement; raise it if your horizon is shorter.
Safe withdrawal by portfolio size
| Portfolio | 4% per year | Cautious 3.5% |
|---|---|---|
| $250,000 | $10,000 | $8,750 |
| $500,000 | $20,000 | $17,500 |
| $750,000 | $30,000 | $26,250 |
| $1,000,000 | $40,000 | $35,000 |
| $1,500,000 | $60,000 | $52,500 |
| $2,000,000 | $80,000 | $70,000 |
Which withdrawal rate should you use?
4% is the classic starting point, but many early retirees planning for 40–50 years use 3.25–3.75% for extra safety, and some use flexible "guardrails" instead of a fixed rate. Choosing the rate is the whole game — we cover the trade-offs, sequence-of-returns risk, and four withdrawal strategies in depth in our safe withdrawal rate guide.
4% rule calculator — frequently asked questions
How does the 4% rule calculator work?
Enter your portfolio value and a withdrawal rate (4% by default). The calculator multiplies the two to show your first-year withdrawal, then divides by 12 for a monthly figure. The rate table shows how it changes from 3% to 5%.
How much can I withdraw from a $500,000 portfolio?
At 4%, $500,000 supports $20,000 a year — about $1,667 a month. At a more cautious 3.5% it's $17,500 a year. Enter your own number above to see your figure.
How do I reverse it — how much do I need to withdraw $40,000 a year?
Divide your target spending by the rate: $40,000 ÷ 4% = $1,000,000 (the 25× rule). To find the portfolio you need and the age you'll reach it, use our FIRE number calculator.
Is the 4% rule safe for early retirement?
It's a well-tested baseline, but for a 40–50 year retirement many use 3.25–3.75% for margin. See the trade-offs in our safe withdrawal rate guide.