Retirement Withdrawal Calculator
Plan retirement withdrawals with the 4% rule. See how long your portfolio will last with projected returns and inflation.
By Konstantin Iakovlev · Updated April 2026 · Source: IRS
Annual Withdrawal
$40,000.00
Monthly Withdrawal
$3,333.33
Withdrawal Rate
4.00%
Sustainability Estimate
89%
Balance After 30 Years
$2,427,262.47
Portfolio Depleted
Never (within horizon)
Projected Portfolio Balance
| Year 1 | $1,030,000.00 (withdrawal: $40,000.00) |
| Year 5 | $1,159,274.07 (withdrawal: $45,020.35) |
| Year 10 | $1,343,916.38 (withdrawal: $52,190.93) |
| Year 15 | $1,557,967.42 (withdrawal: $60,503.59) |
| Year 20 | $1,806,111.23 (withdrawal: $70,140.24) |
| Year 25 | $2,093,777.93 (withdrawal: $81,311.76) |
| Year 30 | $2,427,262.47 (withdrawal: $94,262.62) |
The 4% Rule
The widely cited 4% rule suggests withdrawing 4% of your portfolio in year one, then adjusting for inflation each year. This historically provided a high probability of lasting 30 years. Your withdrawal rate of 4.00% is at or below this guideline.
Use the Retirement Withdrawal Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Drawing income from a retirement portfolio without running out is the core challenge this tool addresses, built around the well-known 4% rule. Longevity matters most against the backdrop of 2026's projected inflation rate of around 2.5% and average market returns in the 7-8% range, which together decide how long your savings hold up. Enter your portfolio size, the withdrawal you have in mind, and your expected growth, and you can see how the balance plays out year by year.
The engine runs a dynamic model that starts your first withdrawal at 4% of the initial portfolio value and raises that draw for inflation each year. Every period, the remaining balance grows by your projected investment return before the inflation-adjusted withdrawal comes out, following the compounding relationship New_Balance = (Old_Balance * (1 + Return_Rate)) - (Previous_Withdrawal * (1 + Inflation_Rate)).
The 4% rule is a planning benchmark rather than a promise, and a poorly timed market downturn early in retirement can undermine it. Taxes are the detail most people miss: withdrawals from tax-deferred accounts shrink your net income and speed up depletion. Building in a cushion for surprises such as major healthcare costs also helps, since those expenses can unravel even a carefully mapped withdrawal plan.
Example: Retiring in 2026 with a $1,000,000 Portfolio
- 1 You plan to retire in 2026 with a $1,000,000 portfolio, aiming for an initial withdrawal of 4% ($40,000). You project an average annual market return of 7% and anticipate a 2.5% inflation rate.
- 2 In 2026, your initial withdrawal is $40,000. Your remaining portfolio grows to ($1,000,000 - $40,000) * 1.07 = $1,027,200. For 2027, your withdrawal will be $40,000 * (1 + 0.025) = $41,000. This process continues year after year until the portfolio is depleted.
- 3 Based on these inputs, our calculator estimates your portfolio would last approximately 29 years. This means your funds would support your withdrawals until around 2055.
- 4 This example highlights how inflation gradually increases your withdrawal amount, while investment returns work to replenish your portfolio. Understanding this balance is key to a sustainable retirement. Adjusting your return or inflation estimates can significantly alter the projected lifespan of your savings.
Source: IRS · Last updated: April 2026
Frequently Asked Questions
What is the 4% rule for retirement withdrawals?
How long will $1 million last in retirement?
Should I withdraw from my 401(k) or IRA first?
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