4% Rule Calculator

The 4% rule suggests withdrawing 4% of your total portfolio value each year in retirement. This approach adjusts your income based on portfolio performance rather than a fixed spending target.

How the 4% Rule Works

Each year, you withdraw 4% of your total portfolio value. In good market years, you withdraw more; in down years, less. The default allocation is 96% from tax-deferred, 2% from tax-exempt, and 2% from brokerage. This scenario does not use a fixed income target.

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$776,984
Portfolio at Retirement
$2.08M
Peak Portfolio Value
at age 100
$2.08M
Portfolio at Age 100
Funds remain
$51,490
Avg. Annual Draw
from portfolio

Total Portfolio Value

With 4% annual withdrawal

65666768697071727374757677787980818283848586878889909192939495969798100$0K$550K$1100K$1650K$2200K

Account Breakdown

How each account type evolves

65666768697071727374757677787980818283848586878889909192939495969798100$0K$550K$1100K$1650K$2200K
  • Tax Deferred (401K/IRA)
  • Tax Exempt (Roth)
  • Brokerage

Income Sources

SS + Pension + 4% Portfolio Draw

6768697071727374757677787980818283848586878889909192939495969798100$0K$60K$120K$180K$240K
  • Social Security
  • Pension
  • Portfolio Draw