Retirement Withdrawal Calculator
Enter your retirement savings total to estimate a safe annual and monthly withdrawal amount using the widely cited 4% rule, or enter a target annual income to find the nest egg size needed to support it.
How the Retirement Withdrawal formula works
The 4% rule, and its inverse:
Safe annual withdrawal = Savings × 4% Required nest egg = Desired annual income / 4%
Step-by-step calculation
- Multiply total retirement savings by 4% (or your chosen withdrawal rate) to estimate a sustainable annual withdrawal.
- Divide by 12 for a monthly figure.
- To work backward from a target income, divide the desired annual income by the withdrawal rate instead.
Worked example
$1,000,000 in retirement savings at a 4% withdrawal rate: Annual withdrawal = 1,000,000 × 0.04 = $40,000, or about $3,333/month. To support $60,000/year instead, the required nest egg = 60,000/0.04 = $1,500,000.
Frequently asked questions
Is the 4% rule guaranteed to make savings last?
No — it's a widely cited historical guideline based on past market returns over a roughly 30-year retirement horizon, not a guarantee. Market conditions, inflation, and how long retirement lasts can all affect whether a given withdrawal rate proves sustainable.
Should the withdrawal rate stay fixed every year?
The original 4% rule adjusts the withdrawal amount for inflation each year rather than recalculating 4% of the current balance annually — some retirees instead use more flexible strategies that adjust withdrawals based on market performance.