4 Percent Rule Calculator

2026 rules

Turn your yearly spending into a savings target, or see what the 4 percent rule lets you withdraw from what you have.

Your numbers

Yearly spending you want from savings

After Social Security and pensions.

Savings you have now

Withdrawal rate

Result

Savings you need$1,500,000

Spending ÷ withdrawal rate25.0× spending
Target$1,500,000
First-year withdrawal from your savings$24,000
Monthly$2,000
Gap to target$900,000
Funded today40%

The rule raises the first-year dollar amount with inflation each year. It was built for a 30-year retirement.

How it works

The rule says you can withdraw 4% of your portfolio in the first year of retirement and raise that dollar amount with inflation each year after, and the money has historically lasted 30 years. Your target is your spending times 25.

Count only the spending your savings must cover: subtract Social Security, pensions and any part-time income first.

2026 figures: IRS Publication 590-B, Appendix B; IRS Rev. Rul. 2026-19 (October 2026 AFRs); IRS Notice 2022-6 (72(t) payments).

Questions

Is 4% safe for a retirement longer than 30 years?

For 40 years or more, many planners use 3.25% to 3.5%. Try a lower rate to see the larger target.

Does the 4% include taxes?

No. The 4% is gross. Withdrawals from traditional IRAs and 401(k)s are taxed, so plan for that in your spending figure.