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Safe Withdrawal Rate Calculator

Determine how much annual income your portfolio can sustainably support using withdrawal rate strategies, and calculate the portfolio size needed to fund your target income.

Quick answer: Apply a safe withdrawal rate like the classic 4% rule to a portfolio to see the annual income it can sustainably support, and the portfolio size needed for a target income. Enter Portfolio Value, Withdrawal Rate, and Target Annual Income to personalize the estimate. It returns First-Year Planned Withdrawal, First-Year Monthly Withdrawal, and Portfolio Needed for Your Target Income so you can compare the impact before choosing a next step. Use it to compare long-term value, tax impact, risk, time horizon, and contribution choices.

SWReviewed by SwitchWize Research Desk · Last reviewed July 1, 2026
First-Year Planned Withdrawal
$40,000
First-Year Planned Withdrawal
$40,000
First-Year Monthly Withdrawal
$3,333
Portfolio Needed for Your Target Income
$1,500,000
Diagnostic

At a 4.00% planning rate, the first-year withdrawal is about $40,000.

To generate $60,000 a year at this rate, you'd need a portfolio of about $1,500,000.

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What to do next

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Your action plan
  1. 1

    Set the target and timeline for this plan

    Apply a safe withdrawal rate like the classic 4% rule to a portfolio to see the annual income it can sustainably support, and the portfolio size needed for a target income.

  2. 2

    Check the assumptions before using the result for a high-stakes decision

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

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Frequently Asked Questions

Everything you need to know.

What does an example Safe Withdrawal Rate Calculator calculation look like?
Using this calculator's own default assumptions, a portfolio value of $1,000,000, withdrawal rate of 4% and target annual income of $60,000 produces an estimated first-year planned withdrawal of $40,000 and first-year monthly withdrawal of $3,333. Enter your own numbers above to see how it changes for your situation.
Why does my withdrawal amount change if my portfolio grows or shrinks?
A withdrawal rate applies a fixed percentage to your current balance each year, so the dollar amount you withdraw fluctuates with your portfolio's performance. In years when markets rise, your balance grows and your withdrawal increases; in down years, your withdrawal shrinks. This flexibility helps protect your remaining savings from being depleted too quickly during market downturns.
How do I know what withdrawal rate is right for me?
Your ideal withdrawal rate depends on how long you expect to draw from the portfolio, market conditions, and how much flexibility you have to reduce spending if needed. A lower rate withdraws less but requires a larger initial portfolio, while a higher rate reduces the portfolio you need but carries more risk that you might outlast your money. The tradeoff is between the portfolio size required upfront and the sustainability of income over time.
Is the Safe Withdrawal Rate Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Safe Withdrawal Rate Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare brokerage accounts, or run Money Map to compare this investing & retirement decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (brokerage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

How much you withdraw from your portfolio each year directly affects how long your money lasts. A withdrawal rate ties your annual spending to your current balance, helping you adjust withdrawals during market downturns to avoid depleting your savings too quickly. Understanding this relationship lets you plan a sustainable income stream that accounts for inflation and market volatility over decades.

How to Use It

  1. 1Enter your current portfolio value.
  2. 2Input your chosen withdrawal rate as a percentage.
  3. 3Specify your target annual income goal.
  4. 4Review your first-year planned withdrawal amount, what that translates to monthly, and the total portfolio size required to support your income target.
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