Retirement Withdrawal Calculator

Estimate sustainable annual and monthly retirement income from your portfolio size using a customizable withdrawal rate — the widely cited "4% rule" is the default. Educational estimate, not financial advice.

Portfolio Value ($)

Withdrawal Rate (%)

What the tool computes

Two lines of arithmetic on the balance you type in - your first year's withdrawal, and that figure spread over twelve months:

annual withdrawal  = portfolio × (rate / 100)
monthly withdrawal = annual withdrawal / 12

A $1,000,000 portfolio at 4% gives $40,000 a year, or $3,333 a month. At 3.5% the same portfolio gives $35,000 and $2,917; at 5% it gives $50,000 and $4,167. Both boxes must hold a number above zero.

The rate is a starting point, not a rule of physics

The 4% figure comes from the Trinity study, which checked historical US stock and bond returns to see which withdrawal rates survived 30-year retirements. It is what happened in past data over that horizon - not a promise about yours.

Year one only. Under the method the 4% is measured against the balance on the day you retire, and afterwards you raise that dollar amount with inflation rather than taking a fresh 4% of a changed portfolio.
Sequence-of-returns risk decides it. The same average return can hold up or fail depending on when the bad years arrive; selling into a slump in year two removes shares that would otherwise have recovered. Retirees who can trim spending in bad years get more room than a fixed withdrawal allows.

The figures are gross withdrawals in today's dollars. How much of that you keep depends on which accounts the money comes from and the tax rules where you live, so check your own position before budgeting on it.

Frequently asked questions

How much income does $1 million give in retirement?

$40,000 in the first year at a 4% rate, which is $3,333 a month. A more cautious 3.5% gives $35,000, or $2,917 a month.

Do I withdraw 4% of the balance again every year?

Not under the Trinity approach: you set the dollar amount in year one and index it to inflation. Taking a fresh percentage of the current balance is a different strategy - it can never empty the pot, but your income falls whenever markets do.

Is 4% too high for an early retirement?

The study tested 30 years. Retire at 45 and the money may need to last 50, which is why many early retirees plan on 3% to 3.5%.