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Finance Calc Kit
Retirement

Retirement Withdrawal Calculator

Calculate retirement portfolio withdrawal rates, how long your money will last in retirement, 4% rule safe withdrawal, and inflation impact.

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Projected portfolio lifespan

35 years, 11 months

$4,000.00/mo withdrawal at 4.80% initial rate

Initial withdrawal rate

4.80%

Real return (net inflation)

3.41%

4% rule benchmark

$3,333.33/mo

$40,000.00/yr

Annual outflow

$48,000.00

Drawdown summary

Portfolio balance
$1,000,000.00
Monthly withdrawal
$4,000.00
Nominal return
6.00%
Inflation assumption
2.50%
Real return
3.41%
Report tool

Retirement withdrawal and portfolio lifespan

This calculator estimates how long a retirement portfolio lasts at a fixed monthly withdrawal, using inflation-adjusted (real) returns. It also shows your initial withdrawal rate and the classic 4% rule benchmark.

To estimate how much you need before retirement, use the retirement planning calculator. For FIRE-style nest egg targets, see the early retirement calculator. For a fixed nominal monthly withdrawal without inflation adjustment, use the SWP calculator.

Withdrawal rate and real return

Withdrawal Rate=Annual WithdrawalPortfolio Balance×100%\text{Withdrawal Rate} = \frac{\text{Annual Withdrawal}}{\text{Portfolio Balance}} \times 100\%
Real Return=1+r1+i−1\text{Real Return} = \frac{1 + r}{1 + i} - 1

Where r is the nominal annual return and i is the annual inflation rate. The simulation applies monthly real returns and subtracts a constant monthly withdrawal until the balance reaches zero.

The 4% rule benchmark

The 4% rule suggests withdrawing 4% of the initial portfolio in year one, then adjusting for inflation each year. On a $1,000,000 portfolio, that equals $40,000 per year or about $3,333 per month. Compare your planned withdrawal to this benchmark to gauge sustainability risk.

Frequently asked questions

Is the 4% rule still reliable?
The 4% rule is a planning guideline based on historical U.S. market data, not a guarantee. Lower expected returns, higher inflation, or longer retirements may require a more conservative withdrawal rate.
Why use real returns in the simulation?
Real returns strip out inflation so a fixed nominal withdrawal approximates constant purchasing power. This better reflects whether your spending power is preserved over time.
What does perpetual portfolio mean?
If the portfolio still has a positive balance after 50 years of simulated withdrawals, returns are high enough relative to withdrawals that the account may last indefinitely under these assumptions.
Should I keep withdrawals fixed in retirement?
Many retirees use flexible strategies, reducing spending after market declines. Fixed-withdrawal models are useful for baseline stress testing but may overstate risk in flexible plans.
Can I share my withdrawal scenario?
Yes. Inputs sync to the URL so you can share your drawdown assumptions with an advisor or spouse.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.