About the 4% Rule Calculator
The 4% rule is retirement planning's most famous rule of thumb: withdraw 4% of your starting balance in year one, adjust for inflation after, and your savings should last about 30 years. This calculator applies it both ways — income from a nest egg, and the nest egg a target income needs.
How it’s calculated
Annual income = nest egg × withdrawal rate. Nest egg needed = desired income ÷ withdrawal rate (at 4%, that's 25× your annual spending).
Example calculation
A $1,000,000 portfolio supports about $40,000 a year; to get $60,000 a year you'd need roughly $1.5 million.
Frequently asked questions
Is the 4% rule guaranteed?
No — it's derived from historical US market data over 30-year periods. It's a useful starting point, not a promise; longer retirements or poor early returns may call for a lower rate.
Should early retirees use 4%?
For retirements much longer than 30 years, many planners suggest a more conservative 3–3.5% withdrawal rate to be safe.
Retirement projections are estimates based on the assumptions you enter and do not guarantee future outcomes. Contribution limits and tax rules change over time — verify current figures and consider speaking with a financial professional.