Safe Withdrawal Rate Calculator
How much can you safely spend? · Updated 2026
What Is a Safe Withdrawal Rate?
A safe withdrawal rate (SWR) is the percentage of your portfolio you can withdraw each year in retirement without running out of money. The most famous benchmark is the 4% rule, introduced by financial planner William Bengen in 1994 and validated by the Trinity Study.
The idea: withdraw 4% of your portfolio in year one, then adjust that dollar amount for inflation each subsequent year. Historically, this strategy has survived every 30-year retirement period in US market history — including the Great Depression and the 1970s stagflation.
How This Calculator Works
This calculator applies your chosen withdrawal rate to your portfolio balance and shows both annual and monthly withdrawal amounts. For a $1,000,000 portfolio at 4%, that’s $40,000 per year or $3,333 per month.
The key insight: your withdrawal amount is determined by your portfolio size at retirement, not your pre-retirement income. This is why tracking your FIRE number matters more than your salary.
| Withdrawal Rate | Annual | Monthly |
|---|---|---|
| 3.0% | $30,000 | $2,500 |
| 3.5% | $35,000 | $2,917 |
| 4.0% | $40,000 | $3,333 |
| 4.5% | $45,000 | $3,750 |
| 5.0% | $50,000 | $4,167 |
Choosing the Right Withdrawal Rate
Your ideal withdrawal rate depends on three factors:
Retirement length: 30-year retirement? 4% is fine. 50-year? Go lower.
Risk tolerance: Conservative investors may prefer 3-3.5% for peace of mind.
Flexibility: If you can reduce spending by 20% in down markets, you can safely use a higher withdrawal rate.
Frequently Asked Questions
How is safe withdrawal rate calculator calculated?
The formula is: Balance × Withdrawal Rate. Enter your values above and click Calculate to see your personalized result instantly. The 4% rule suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting for inflation each year after. Research shows this approach has historically survived 30-year…
What inputs do I need for the safe withdrawal rate calculator?
You need: Balance, Withdrawal Rate, Years. Default values are pre-filled — adjust them to match your personal finances for a customized result.
Is the safe withdrawal rate calculator free to use?
Yes — all TorchFI calculators are completely free. No registration, no email required. Calculations run entirely in your browser for maximum privacy. We never see or store your financial data.
How does the safe withdrawal rate calculator help with FIRE planning?
Determine how much you can safely withdraw from your portfolio each year without running out of money. Based on the Trinity Study and the 4% rule. This calculator helps you make data-driven decisions about your financial independence journey instead of relying on guesswork.