Retirement Withdrawal Calculator

Plan retirement withdrawals with the 4% rule. See how long your portfolio will last with projected returns and inflation.
$
Withdrawal Type
%
%
%

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

Our Retirement Withdrawal Calculator helps you strategically plan your retirement income using the widely recognized 4% rule. This tool is crucial for ensuring your nest egg lasts throughout your retirement, especially considering 2026's projected inflation rate of around 2.5% and average market returns of 7-8%. By inputting your portfolio size, desired withdrawal amount, and expected investment growth, you can visualize the longevity of your funds.

This calculator employs a dynamic model that adjusts your annual withdrawal for inflation, starting with 4% of your initial portfolio value. Each year, your remaining portfolio balance is adjusted by your projected investment return, and then your inflation-adjusted withdrawal is deducted. We use a compounding formula where: New_Balance = (Old_Balance * (1 + Return_Rate)) - (Previous_Withdrawal * (1 + Inflation_Rate)).

When using the 4% rule, remember it's a guideline, not a guarantee; market downturns can significantly impact its success. A common mistake is not accounting for taxes on withdrawals, which can reduce your net income and accelerate portfolio depletion. Consider a buffer for unexpected expenses like healthcare, as these can quickly derail a carefully planned withdrawal strategy.

Example: Retiring in 2026 with a $1,000,000 Portfolio

  1. 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. 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. 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. 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?
The 4% rule says you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year, with a high probability of not running out of money over 30 years.
How long will $1 million last in retirement?
At a 4% withdrawal rate, $1 million provides $40,000 per year (plus inflation adjustments) for approximately 30 years. Your actual timeline depends on investment returns, inflation, and spending patterns.
Should I withdraw from my 401(k) or IRA first?
A common strategy is to withdraw from taxable accounts first, then tax-deferred (Traditional IRA/401k), then tax-free (Roth). However, strategic Roth conversions in low-income years before age 73 can reduce lifetime taxes.

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