4 Percent Rule Calculator
Estimate the portfolio size needed to support a target level of annual spending using a chosen withdrawal rate.
Target portfolio
$—
First-year withdrawal$—
Withdrawal rate used—
Rule of thumbPlanning shortcut, not a guarantee.
How to use this page
The 4 percent rule is a rough planning shortcut. It tells you how large a portfolio might be needed if you want first-year withdrawals to equal about 4% of the balance. It does not guarantee success in every market or every retirement length.
For many people the value of this page is not precision. It is speed. You can quickly translate spending into a capital target before moving on to your contribution plan.
Example
If you want $40,000 per year and use a 4% withdrawal rate, the target portfolio is about $1,000,000. If you prefer a more conservative 3.5% rate, the required portfolio rises.
Next step: use the financial independence calculator or the how to reach $1 million guide.