Retirement Withdrawal Calculator
Calculate safe retirement withdrawal rates (4% rule), monthly income, portfolio longevity, and required minimum distributions from 401(k) and IRA accounts.
About the Retirement Withdrawal Calculator
The 4% rule — the most widely-cited retirement withdrawal guideline — says you can withdraw 4% of your portfolio in year one, then adjust for inflation annually, with a high probability of not outliving your money over a 30-year retirement. Our calculator models your portfolio longevity at any withdrawal rate.
Enter your retirement balance, expected return, inflation rate, and withdrawal amount to see how long your money will last — plus estimated Required Minimum Distributions (RMDs) you'll be legally required to take from traditional IRA/401(k) accounts starting at age 73.
The 4% rule: what it is and its limitations
The 4% rule (Bengen, 1994) was derived from historical US market data showing that a 4% inflation-adjusted withdrawal rate survived all 30-year periods from 1926–1993. However: it was designed for a 30-year retirement; retiring earlier requires a lower rate (3–3.5%); it assumes a specific asset allocation (roughly 50–75% stocks); and it doesn't account for large unexpected expenses or sequence-of-returns risk in early retirement years.
Required Minimum Distributions (RMDs) explained
Traditional IRA and 401(k) account holders must begin taking RMDs at age 73 (as of SECURE Act 2.0, 2023). The amount is calculated by dividing your account balance (as of December 31 of the prior year) by the IRS Uniform Lifetime Table divisor for your age. Failing to take the RMD results in a 25% excise tax on the amount not withdrawn. Roth IRAs have no RMDs during the owner's lifetime.
Sequence-of-returns risk: the biggest threat
Even with adequate average returns, a bear market in the first 5–10 years of retirement can permanently damage portfolio longevity. A 30% market drop in year 2 of retirement combined with withdrawals can halve the remaining balance exactly when you need it most. Strategies to mitigate this: maintain a 1–2 year cash buffer, use a dynamic withdrawal strategy (reduce spending in down years), and consider a bucket strategy separating near-term and long-term assets.