4% Rule Calculator — Safe Withdrawal
Annual income your portfolio supports at 4% (or your chosen SWR) — Trinity-study context and Indian caveats.
Formula
Disclaimer: Indicative math using recently applicable rates and rules — verify current-year figures. Not financial or tax advice.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need 4% rule calculator results fast? Skip the spreadsheet and get a clear, defensible answer in one step — free, private and instant, recalculating live as you change any input.
About 4% Rule Calculator — Safe Withdrawal
The 4% rule compresses the Trinity study's finding into one number: withdrawing 4% of a 50-75% stock portfolio in year one, then adjusting that DOLLAR amount for inflation annually, survived essentially every historical 30-year US retirement. A $1M portfolio thus supports $40,000/year — equivalently, retirement costs 25× annual expenses, the multiplication that powers the entire FIRE movement. Understand what it is and isn't: a HISTORICAL worst-case planning heuristic (most retirements following it ended with MORE money than they started — the median outcome quadrupled), not a guarantee; it assumed US returns (international datasets suggest 3-3.5%), 30 years (early retirees planning 50 should study 3.25-3.5%), and zero fees (a 1% advisor fee effectively turns 4% into 3%). The slider above prices every variant instantly. Modern practice softens the mechanical rule: GUARDRAILS (cut withdrawals ~10% after bad years, raise after great ones) historically supported 4.5-5%+ starting rates; sequence-of-returns risk concentrates in the first decade (a crash early hurts far more than late — hence bond tents and cash buckets); and India-specific users should note higher inflation + shorter equity history argue for 3-3.5% SWRs, or — better — the bucket strategies our SWP and retirement-corpus calculators model directly.
How to use 4% Rule Calculator — Safe Withdrawal
- 1Enter Portfolio value, Withdrawal rate (%) into the 4% Rule Calculator.
- 2The result is computed automatically using Year-1 withdrawal = corpus × SWR; subsequent years adjust THAT amount for inflation (not 4% of each year's balance) — there is no button to press; it updates live as you type.
- 3Change any input to model a different scenario, then use “Copy result link” to share the exact numbers.
Why use 4% Rule Calculator — Safe Withdrawal?
- ✓Computes 4% rule calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter are never uploaded or stored
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
Is the 4% rule still valid today?+
As a planning anchor, yes; as a contract, it never was. Critics cite lower expected returns; supporters note it already encodes the worst historical sequences (1929, 1966 stagflation). Current research clusters at 3.3-4.3% depending on horizon and flexibility. Pragmatic answer: plan at 3.5-4%, retire with the ABILITY to flex spending 10-15% — flexibility is worth more than precision.
4% har saal ke balance ka ya pehle saal ka?+
PEHLE saal ka, phir us RAQAM ko inflation se badhate jaana — balance ka 4% har saal nikaalna alag (aur zyada conservative) strategy hai jisme income volatile ho jaati hai par corpus kabhi khatam nahi hota. Classic rule fixed-real-income deta hai; percent-of-balance variable income. Dono valid hain — bas confuse karke aadha-aadha mat karna.
India me 4% rule chalega ya nahi?+
Savdhani se: Indian inflation (6%+) US (3%) se zyada hai aur equity-history chhoti — direct 4% import risky hai. Indian FIRE community 3-3.5% (28-33× expenses) par converge karti hai, ya hybrid approach: pehle 5-7 saal ka kharcha debt-bucket me + baaki equity par 4-5% type withdrawals. Hamara retirement-corpus calculator Indian inputs ke saath wahi two-phase math karta hai.
What about sequence-of-returns risk?+
The rule's real enemy: a 40% crash in retirement year 2 with fixed withdrawals can doom a portfolio the AVERAGE return said was fine. Defenses: 2-3 years of cash/bonds spent during crashes (bucket strategy), guardrail spending cuts in down years, and part-time income early in retirement. The first decade decides everything; plan its defense specifically.
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