Retirement Withdrawal Calculator (Safe Withdrawal Rate)
Enter your nest egg and a withdrawal rate. See the annual and monthly income it provides, adjusted thinking for early retirement, and what each rate risks.
| From portfolio | — |
| Per month, all sources | — |
| Historical note at this rate | — |
Quick answer: At the classic 4% rule: $32,000 in year one, inflation-adjusted after. At a conservative 3.5%: $28,000. Add Social Security or pensions on top for total income.
How safe withdrawal rates work
Year-1 income = Portfolio × rate, then adjust the dollar amount for inflation yearly
The 4% rule (from the Trinity study of US market history): withdraw 4% of the starting balance, raise it with inflation each year, and a diversified portfolio survived ~95% of 30-year retirements. $800,000 → $32,000/year from the portfolio, plus Social Security on top.
Choosing your rate honestly
| Rate | Fits |
|---|---|
| 3–3.5% | Retiring before ~50, or zero flexibility to cut spending |
| 4% | Traditional 30-year retirement, some flexibility |
| 4.5–5% | Shorter horizons, strong pensions behind you, or willingness to cut 10–20% in bad markets |
What improves the odds beyond the rate
- Flexibility beats precision: skipping the inflation raise after a crash year adds years of portfolio life.
- Sequence risk is the killer: bad markets in the first 5 retirement years matter far more than average returns — a 1–3 year cash buffer blunts it.
- Delaying Social Security raises the guaranteed floor ~8%/year of delay — often the best "investment" available; weigh it with the claiming calculator.
Frequently asked questions
How much can I withdraw from $800,000 in retirement?
At the classic 4% rule: $32,000 in year one, inflation-adjusted after. At a conservative 3.5%: $28,000. Add Social Security or pensions on top for total income.
Is the 4% rule still safe?
It remains the reasonable 30-year baseline from historical data. Longer retirements, high market valuations, or zero flexibility argue for 3.25–3.75%; willingness to cut spending in bad years supports higher.
What is sequence of returns risk?
Early-retirement market crashes force selling shares cheap, permanently shrinking the base — the same average returns in a different order can break a plan. Cash buffers and flexible spending are the standard defenses.
Do withdrawals count RMDs and taxes?
The rate is pre-tax: withdrawals from traditional accounts are taxable income, and RMDs force minimum withdrawals from age 73+. Plan spending on the after-tax amount.
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Last updated: 2026-07-08