Safe Withdrawal Rate Calculator
Reviewed by Hamza Gujjar, Algorithm Architect & Software Developer
Last updated: July 27, 2026
Disclaimer: This calculator is provided for informational and educational purposes only and does not constitute financial, medical, legal, or other professional advice. Always consult a qualified professional before making decisions based on these results.
Where the "4% rule" comes from
The safe withdrawal rate concept traces back to the Trinity Study, historical research testing various withdrawal rates against actual US market returns to find rates with a high probability of lasting a 30-year retirement without depleting the portfolio.
Worked example
For a $1,000,000 portfolio using a 4% withdrawal rate:
Annual Withdrawal = 1000000 x 0.04 = 40,000/year (3,333.33/month)
| Withdrawal Rate | General Risk Level |
|---|---|
| 3% - 3.5% | Conservative, high historical success rate |
| 4% | Traditional benchmark rate |
| 5%+ | More aggressive, higher depletion risk over long retirements |
This calculation is a starting reference point, not a guarantee - actual sustainable rates depend on market performance during your specific retirement years, portfolio composition, and how long retirement lasts. This is informational only, not personalized financial advice.