4% Rule Calculator
Estimate the portfolio you need to support your retirement spending with the 4% rule.
With $50,000 of annual retirement spending and a 4% withdrawal rate, you need about $1,250,000 — that is 25× your annual spending. Withdraw 4% in year one and adjust that dollar amount for inflation each year. Try 3% or 5% to see how a lower or higher assumption changes the target.
Your plan
Calculations run in your browser. Inputs are not stored.
What you expect to spend each year once retired.
Presets are illustrative. Edit the rate to match your own assumption.
4% withdrawal rate • 25.0× annual spending
This calculator converts spending into a target. It does not simulate portfolio survival, market sequence, taxes or fees.
What each rate requires
| Withdrawal rate | Portfolio needed |
|---|---|
| 3% (33.3×) | $1,666,667 |
| 4% (25×) | $1,250,000 |
| 5% (20×) | $1,000,000 |
A lower withdrawal-rate assumption means a larger portfolio target. The rate you test changes the target dramatically.
How this calculation works
The retirement number
The 4% rule is a retirement shorthand: save roughly 25× your annual spending, withdraw 4% in the first year, and adjust that dollar amount for inflation each year.
At a 4% withdrawal rate that is 25× annual spending. For $50,000 a year, you need $1,250,000.
Retirement number by spending and withdrawal rate
| Annual spending | 3% (33.3×) | 4% (25×) | 5% (20×) |
|---|---|---|---|
| $36,000 | $1,200,000 | $900,000 | $720,000 |
| $40,000 | $1,333,333 | $1,000,000 | $800,000 |
| $50,000 | $1,666,667 | $1,250,000 | $1,000,000 |
| $60,000 | $2,000,000 | $1,500,000 | $1,200,000 |
| $75,000 | $2,500,000 | $1,875,000 | $1,500,000 |
Where the 4% comes from
The 4% rule comes from historical withdrawal-rate research associated with William Bengen and the Trinity Study. Results vary by asset allocation, market sequence and horizon, so treat 4% as a planning benchmark rather than a promise. Review the historical research.
Assumptions
- Retirement number = annual spending ÷ the withdrawal-rate assumption.
- 4% ≈ 25× annual spending; 3% ≈ 33.3×; 5% ≈ 20×.
- No inflation detail beyond the rule's built-in inflation-adjusted withdrawal assumption.
- No taxes, fees, Social Security or portfolio income are included.
- This is a back-of-envelope planning number, not a spending plan or advice.
Educational purposes only. Not financial advice. See the full methodology and disclaimer.
Worked examples
See how the 4% rule translates your desired retirement lifestyle into a portfolio target. The formula is simple: portfolio needed = annual spending ÷ withdrawal rate.
Example 1: A $60,000/year retirement at 4%
Desired annual spending: $60,000 · Withdrawal-rate assumption: 4%
If you want to spend $60,000 in the first retirement year and test a 4% withdrawal-rate assumption, the target is $1,500,000 — 25 times annual spending (1 ÷ 0.04 = 25). The historical 4% framework is not based on simply subtracting withdrawals from an average return; it tested inflation-adjusted withdrawals across historical market sequences. Outcomes depend on asset mix, sequence, fees and retirement horizon, so this calculator shows the target arithmetic rather than a survival guarantee.
Example 2: How your withdrawal rate changes everything
Same $60,000/year spending · different withdrawal-rate assumptions
The difference between a 3% and 5% withdrawal rate is $800,000 in required portfolio size. That's because the withdrawal rate is in the denominator: a lower rate means you need a much larger portfolio. Historical 4% research is commonly discussed around 30-year retirement horizons in U.S. data. For a 40–50 year horizon, test lower rates such as 3–3.5% as additional stress scenarios rather than treating 4% as automatically suitable. If you expect reliable pension, Social Security or other income, subtract the amount that covers retirement spending before applying this portfolio-target formula; other income does not by itself make a higher withdrawal rate safe.
Example 3: Different lifestyles, different price tags
4% withdrawal rate · different annual spending levels
Your retirement lifestyle has a direct, linear relationship with how much you need to save. At 4%, every $10,000 of annual spending requires $250,000 more in your portfolio. Want to retire on $40,000/year (Lean FIRE, possible in low-cost areas or with paid-off housing)? You need $1M. Want $60,000/year (comfortable in most U.S. cities)? $1.5M. Want $100,000/year (Fat FIRE, including travel and hobbies)? $2.5M. This is why the FIRE community emphasizes reducing expenses: cutting $1,000/month from your budget doesn't just save $12,000/year now — it reduces your retirement target by $300,000. Try our FIRE calculator to see when you could reach your number.
All examples use the 4% rule as a planning guideline. Actual safe withdrawal rates depend on market conditions, asset allocation, retirement length, and other factors. See full disclaimer.
The 4% rule, explained
What is the 4% rule?
Where does the 4% rule come from?
Is 4% still safe?
How do I use the calculator?
What does the 4% rule not account for?
How does Social Security affect my withdrawal rate?
What is a "bond tent" and does it relate to the 4% rule?
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Related reading
How the 4% rule fits into a complete retirement plan.→ FIRE, the 4% Rule, and Your FIRE Number
The complete guide to safe withdrawal rates.→ How Much Do You Need to Retire?
Calculate your target nest egg the right way.→ Can You Retire With $1 Million?
What the 4% rule means for a seven-figure portfolio.→
Last reviewed: September 2026.
Continue your plan
Use these related resources to put this result in context: 4% rule research context · retirement calculator · retirement planning guide.
The 4% rule is a historical withdrawal framework, commonly studied over 30-year periods. It does not guarantee success or preservation of principal: principal can decline or be depleted. Results depend on allocation, fees, taxes, inflation, retirement length and the sequence of returns.