Safe Withdrawal Rate Calculator: Annual Withdrawal as a Share of Portfolio
Work out your retirement withdrawal rate — annual withdrawal as a percentage of portfolio — and check it against the 4% rule, the most-cited benchmark for retirement sustainability.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Withdrawal rate | Portfolio remaining share |
|---|---|---|
| $40k / $1M (4% rule) | 4.00% | 96.00% |
| $30k / $1M (3% safe) | 3.00% | 97.00% |
| $60k / $1.2M (5% aggressive) | 5.00% | 95.00% |
| $80k / $2.5M (3.2%) | 3.20% | 96.80% |
How This Calculator Works
Enter your planned annual withdrawal and total portfolio value. The calculator divides one by the other and multiplies by 100 to give the withdrawal rate, with the portfolio-remaining share shown alongside. Compare against the 4% rule: rates at or below 4% have historically sustained a 30-year retirement; higher rates raise the depletion risk.
The Formula
Part as a Percentage of a Whole
Part is the portion, Whole is the total it belongs to
Worked Example
A $40,000 annual withdrawal from a $1,000,000 portfolio is a 4% withdrawal rate — exactly the classic benchmark. The 4% rule (from the Trinity Study) found that a 4% initial withdrawal, adjusted for inflation each year, survived all historical 30-year periods in a balanced stock/bond portfolio. A 3% rate is very safe; a 5% rate carries meaningful depletion risk in poor market sequences.
Key Insight
The 4% rule is a starting benchmark, not a guarantee. It was derived from US historical returns and a 30-year horizon — early retirees (40-year+ horizons) often use 3% to 3.5% for safety, while flexible retirees who can cut spending in down markets can sustain 4.5% to 5%. Sequence-of-returns risk (poor returns early in retirement) is the real danger; the same average return delivered in a bad order can deplete a portfolio that a good order would sustain. Build in flexibility rather than treating any fixed rate as a promise.
Frequently Asked Questions
How is the withdrawal rate calculated?
Divide annual withdrawal by portfolio value, multiply by 100. $40,000 from a $1,000,000 portfolio is a 4% withdrawal rate.
What is the 4% rule?
A retirement guideline from the Trinity Study and William Bengen's research: withdrawing 4% of your portfolio in year one, then adjusting that dollar amount for inflation each year, historically sustained a 30-year retirement in a balanced (50/50 to 75/25 stock/bond) portfolio across all US historical periods.
Is 4% safe for early retirement?
Less so. The 4% rule assumed a 30-year horizon. Early retirees facing 40-to-50-year retirements often use 3% to 3.5% for safety. The longer the horizon, the lower the sustainable rate, because there's more time for a bad sequence to deplete the portfolio.
What is sequence-of-returns risk?
The danger that poor returns early in retirement deplete a portfolio that the same average returns in a different order would sustain. Withdrawing during a downturn locks in losses. It's why flexibility (reducing withdrawals in down years) dramatically improves sustainability.
Can I withdraw more than 4%?
With flexibility, yes. Retirees who can cut discretionary spending in down markets can often sustain 4.5% to 5%. Variable-withdrawal strategies (guardrails, percentage-of-portfolio) adapt to market conditions and typically allow higher average withdrawals than the fixed 4% rule while maintaining safety.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 2 independent, dated sources.
Methodology & Review
The withdrawal rate is annual withdrawal divided by portfolio value, multiplied by 100. The complement is the share of the portfolio left invested. The 4% rule (Bengen, Trinity Study) suggests a 4% initial withdrawal rate has historically sustained a 30-year retirement; lower rates are safer, higher rates risk depletion.
Written by Ugo Candido · Last updated May 17, 2026.