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💧Safe Withdrawal Rate Calculator

Estimate how much sustainable annual and monthly income your portfolio can generate at different withdrawal rates.

Your Numbers

Your Results

Annual Income
$40,000
Monthly Income
$3,333

Income at Different Withdrawal Rates

3%$30,000/yr
3.5%$35,000/yr
4%$40,000/yr
4.5%$45,000/yr
5%$50,000/yr

What Is Safe Withdrawal Rate?

A safe withdrawal rate is the percentage of your portfolio you can spend each year in retirement with a high probability of never running out of money, even accounting for market downturns, sequencing risk, and a multi-decade time horizon.

It's the inverse problem of the FIRE number: instead of asking "how much do I need," it asks "given what I have, how much can I actually spend?"

How This Calculator Works

This calculator simply applies a withdrawal percentage to a portfolio value to show annual and monthly income, and lays out how that income changes across a range of withdrawal rates so you can see the tradeoff directly.

Portfolio value
The total invested assets you're drawing income from.
Withdrawal rate
The annual percentage you plan to withdraw. The calculator shows how income changes from 3% to 5% so you can compare.
Annual Income = Portfolio Value × Withdrawal Rate

Psychological Considerations

The number on the screen is calm. Living off it during an actual market downturn often isn't. The single biggest threat to a withdrawal plan isn't usually the math — it's panic-selling into a 30% drawdown in year two of retirement, locking in losses that a static spreadsheet never modeled.

Before you retire, it's worth honestly rehearsing this: if your portfolio dropped 25% in your first year of withdrawals, would you stick to the plan, or would you act on fear? People who've never actually lived through a downturn while depending on their portfolio for income tend to underestimate how differently it feels in practice versus theory.

Frequently Asked Questions

Why isn't there one universally agreed-upon safe withdrawal rate?

Because "safe" depends on time horizon, market conditions at retirement, flexibility to cut spending in bad years, and how much risk of running short you're willing to accept. 4% is a commonly cited historical benchmark for a 30-year horizon, not a guarantee.

Should my withdrawal rate stay fixed every year?

Many retirees use a fixed real (inflation-adjusted) withdrawal, but increasingly popular alternatives — like reducing withdrawals after a down market year — improve the odds of not running out, at the cost of some income flexibility.

Does this calculator account for taxes?

No — it shows gross portfolio income. Taxes depend on account type (taxable, traditional, Roth) and your tax situation, so actual spendable income will usually be lower than the figure shown.