Safe Withdrawal Rate Calculator
Calculate how much you can safely withdraw annually and monthly from your retirement portfolio.
Results
What is it?
The Safe Withdrawal Rate (SWR) Calculator determines how much income you can draw from your retirement portfolio each year without running out of money. The famous Trinity Study found that a 4% SWR has a 95%+ success rate over 30 years for a diversified stock/bond portfolio.
How to use
Enter your total portfolio value and your desired withdrawal rate. Add the current inflation rate to see your real (purchasing-power-adjusted) return. The outputs show your annual and monthly withdrawal amounts.
Example scenario
A $1,000,000 portfolio at a 4% SWR provides $40,000/year ($3,333/month) in retirement income. With 3% inflation, your real return (net of withdrawals and inflation) is approximately 0.97%.
Pro tip
The 4% rule assumes a 30-year retirement. If you plan to retire at 40 and live to 90, consider a 3% or 3.5% SWR. Also consider dynamic withdrawal strategies — spending a little less in bad market years can dramatically improve portfolio survival rates.