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- The 4% rule says you can withdraw about 4% of your savings in the first year of retirement, then raise it with inflation.
- This calculator turns savings into a safe yearly and monthly income.
- It also works backwards: how much you need to save for the income you want.
- You can change the rate, for example 3.5% for a longer retirement.
How to use the 4% rule calculator
Choose a question
How much you can spend, or how much you need to save.
Enter savings or income
Your retirement savings, or the yearly income you want.
Add other income
Optional: Social Security or a pension reduces the savings you need.
Set the withdrawal rate
4% is the classic rule. Try 3% to 3.5% to be more cautious.
How the 4% rule works
The two directions
Safe first-year withdrawal = savings × 4%
Savings needed = yearly income from savings ÷ 4% (that is, 25 × the income)
After the first year, the withdrawal is raised by inflation each year rather than recalculated.
Example 1: $1 million saved
At a 4% withdrawal rate.
- First-year withdrawal $40,000 ($3,333 a month)
- Year 10 at 3% inflation about $52,191
At 3.5%, $500,000 would support $17,500 in the first year.
Example 2: savings target
You want $60,000 a year.
- With no other income $1,500,000 needed
- With $24,000 from Social Security $900,000 needed
Other guaranteed income can sharply cut the savings you need.
Where the 4% rule helps
Retirement planning
Turn a savings balance into a realistic yearly budget.
Setting a savings goal
Work out your “number” for financial independence.
FIRE and early retirement
Test lower rates for retirements longer than 30 years.
Checking a plan
Compare your planned spending with a common benchmark.
The 4% rule comes from studies of past US stock and bond returns over 30-year retirements. It is a rule of thumb, not a guarantee or financial advice, and longer retirements, high fees or poor early returns may need a lower rate. Test your own numbers year by year with the how long will my money last calculator, project savings with the Roth IRA calculator, or count down with the retirement countdown calculator.
4% rule calculator FAQ
What is the 4% rule?
A guideline that you can withdraw 4% of your retirement savings in the first year, then adjust for inflation each year, with a high chance the money lasts about 30 years.
How much do I need to retire with the 4% rule?
About 25 times the yearly income you need from savings. For $40,000 a year, that is $1 million.
Is the 4% rule still safe?
Many planners still use it as a starting point, but some suggest 3% to 3.5% for early retirees or long retirements.
Does the 4% rule include Social Security?
No. Subtract other income first, then apply the rule only to what your savings must cover.
Do I withdraw 4% every year?
No. You take 4% in the first year, then increase that dollar amount with inflation, regardless of market swings.
What about taxes?
Withdrawals from traditional accounts are taxed, so plan for that within your spending.