Retirement planning involves two phases: accumulation (saving and investing before retirement) and distribution (withdrawing during retirement). Our calculator models both phases to determine whether your savings will last through retirement. It accounts for portfolio growth during both phases, inflation, different withdrawal strategies, and Social Security income. The "4% rule" is a common guideline suggesting you can safely withdraw 4% of your portfolio annually, adjusted for inflation, with a high probability of your money lasting 30+ years.
The 4% rule is a retirement withdrawal guideline based on the Trinity Study. It suggests withdrawing 4% of your portfolio in the first year of retirement, then adjusting that amount for inflation each subsequent year. Historically, this has sustained portfolios for 30+ years in most market conditions.
A common rule of thumb is 25 times your annual expenses (the inverse of the 4% rule). For example, if you need $60,000/year in retirement, you would target a portfolio of $1.5 million. Use this calculator with your specific expenses and income sources for a personalized estimate.
Yes, Social Security is a significant income source for most retirees. You can estimate your benefit at ssa.gov. Our calculator lets you include Social Security to see how it reduces the amount you need to withdraw from your portfolio.
FIRE (Financial Independence, Retire Early) is a movement focused on aggressive saving and investing to achieve financial independence decades before traditional retirement age. FIRE practitioners typically save 50%–70% of their income and target a portfolio of 25–33 times annual expenses.
Visualize compound interest growth and plan savings goals
Maximize self-employed retirement contributions
Compare snowball vs avalanche strategies to eliminate debt faster
Model portfolio growth with compound appreciation and reinvestment