How it works
The withdrawal rate is the share of your savings you take each year. The well-known 4% rule is a starting point, not a guarantee — lower rates last longer, higher rates risk running dry.
Who this is for
Anyone trying to translate a lump nest egg into a spendable monthly number, using the classic 4% guideline or any other rate they want to test.
Worked example
A $750,000 nest egg at the classic 4% rate produces $30,000 a year, or $2,500 a month. Testing 3% instead drops that to $22,500 a year — a more conservative number many planners now favor for very long retirements.
Frequently asked questions
Is 4% still considered safe? It's the most-cited starting point, though some planners now recommend 3-3.5% for retirements expected to last 30+ years, given lower long-run return assumptions.
Does this rate rise with inflation? The classic rule assumes you adjust the dollar amount up with inflation each year while keeping the same starting rate; this calculator shows only the starting-year figure.
How do I know if my savings will actually last at this rate? Use the how long will savings last calculator to model the drawdown against a specific return assumption.