Safe Withdrawal Rate

Safe Withdrawal Rate

The safe withdrawal rate is the percentage of your retirement portfolio you can spend each year without running out of money over a long retirement. The concept comes from the Trinity Study, which found that a 4% annual withdrawal, adjusted for inflation each year, survived nearly every 30-year historical period when invested in a diversified stock and bond portfolio. In practice, this calculator lets you stress-test your own numbers: enter your portfolio size and retirement timeline, then compare what each rate actually puts in your pocket annually and whether your money lasts. If 4% feels too tight, you can see exactly how much more the 5% or 6% scenarios give you, and what the cost is in terms of end balance or depletion risk. The real insight most people miss is that the withdrawal rate works in both directions: it is not just a spending rule, it is also a savings target. Divide your desired annual spending by your chosen rate and you get your FIRE number, the exact portfolio size that makes your retirement self-sustaining. That means improving your financial life with this calculator is not just about picking a rate; it is about using the rate to reverse-engineer how much you actually need to save, then closing that gap as aggressively as possible.