4% Rule Calculator - Estimate Your Retirement Savings

Use our 4% rule calculator to determine how much money you'll need to save for retirement based on your monthly or yearly spending. Get started today!


Result You will need a total of: $300 000
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What Is The 4% Rule?

The 4% rule is a widely used rule of thumb for determining how much money you should withdraw from your retirement savings each year.

The basic idea behind the 4% rule is to help you estimate the amount of money you'll need to retire comfortably and avoid running out of money too early.

Imagine you have saved a certain amount of money for retirement and you want to know how much you can safely withdraw each year to live on.

The 4% rule says that you can withdraw 4% of your savings in the first year of retirement, and then adjust that amount each year for inflation.

So, if you have saved $500,000 for retirement, you could withdraw $20,000 in the first year ($500,000 x 0.04).

The 4% rule is appealing because it's simple to understand and easy to implement, but it's important to keep in mind that it's just a rule of thumb and may not work for everyone.

There are many factors that can impact your retirement savings, such as inflation, investment returns, and changes in your spending habits, so it's always a good idea to work with a financial advisor and create a comprehensive retirement plan that takes these factors into consideration.

Pros And Cons of The 4% Rule


  • Simplicity: The 4% rule is a simple and straightforward way to estimate your retirement savings needs. You only need to know your total savings and the rate at which you want to withdraw money (4% in this case).
  • Provides a starting point: The 4% rule can be a helpful starting point for planning your retirement savings goals. You can use it as a baseline and then adjust it based on your individual circumstances.
  • Increases flexibility: With the 4% rule, you can adjust your withdrawals each year based on changes in your spending habits or inflation. This flexibility can help ensure that you have enough money to support your lifestyle throughout retirement.


  • May not be realistic for everyone: The 4% rule is based on historical market returns and may not reflect the reality of future market conditions. It may not work for everyone, especially if you have higher spending needs or face unexpected expenses.
  • Doesn't account for other sources of income: The 4% rule assumes that you'll be relying solely on your retirement savings for income in retirement, but many people also have other sources of income, such as pensions, Social Security, or rental income.
  • Assumes a constant withdrawal rate: The 4% rule assumes that you'll withdraw 4% of your savings each year, but your spending needs may change over time. You may need to withdraw more or less in certain years, depending on your circumstances.

The 4% rule can be a useful tool for determining your retirement savings goals, but it's important to consider both its advantages and disadvantages.

And to create a comprehensive retirement plan that takes into account your individual circumstances.

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