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4% rule withdrawal

What first-year withdrawal does your portfolio support at the rate you choose?

Your numbers

First-year withdrawal

$48,000

Monthly withdrawal$4,000
Portfolio multiple of spending25

Tip. Educational estimate with the assumptions listed on this page. Not tax, legal, or investment advice.

Assumptions

  • This is year-one spending, not an inflation-adjusted path.
  • Taxes and fees are not subtracted.
  • Sequence risk is not simulated.

Explore the numbers

Examples

Load a scenario, then change one input at a time.

Example 1

Paid-off $1.2M

Classic 4%.

First-year withdrawal

$48,000

Example 2

Early retiree

3.25% on $1.8M.

First-year withdrawal

$58,500

Example 3

Bridge years

5% for a short bridge.

First-year withdrawal

$20,000

What this calculates

Apply a withdrawal rate to invested assets to estimate a first-year retirement paycheck and the implied portfolio multiple.

How to use it

  1. Use investable assets, not home equity you will not sell.
  2. Try 3.5% if you retire early with a long horizon.
  3. If rentals cover part of spending, you can take less from the portfolio.

Common mistakes

  • Withdrawing 4% of a peak balance after a crash.
  • Forgetting taxes on pretax accounts.
  • Treating the rule as a legal guarantee.

Formula

Withdrawal = portfolio × rate. Multiple = 100 ÷ rate.

FAQ

Is the 4% rule the same as FIRE?

FIRE uses it as a target. This tool is the spending side of that coin.

Do I raise it with inflation?

Many research versions inflate the first-year amount. This page shows year one only.

What about Social Security?

Add it outside the portfolio. It can let you draw less.

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