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4% Rule Calculator: either direction.

The rule that started the FIRE movement: withdraw 4% of your portfolio in year one, adjust for inflation after, and your money historically lasts 30+ years. Pick a direction — start with money or with spending.

What is the 4% rule?

The 4% rule comes from the Trinity Study (Cooley, Hubbard, and Walz, 1998), which back-tested rolling 30-year retirement windows from 1926 through 1995. The rule says: in year one of retirement, withdraw 4% of your portfolio; every year after, withdraw that same dollar amount adjusted for inflation. Across nearly every historical window — including the Great Depression, the 1970s stagflation, and the dot-com bust — a 50/75% stock-bond portfolio survived 30+ years at a 4% initial rate roughly 95% of the time. Lower rates (3%, 3.5%) approach 100% success; higher rates (4.5%, 5%) drop toward 70%. The 4% rule is the foundation of every FIRE number: portfolio ÷ SWR × spending. Lower the SWR and the math demands a bigger portfolio but a much higher survival odds. Raise it and you retire sooner, with more risk.

Read the full explainer →
How to use

Three steps to your number

  1. 1
    Start in reverse mode
    The engine opens on “I have savings → what can I spend?” with a $1,000,000 portfolio and 4% SWR pre-loaded. Drag the portfolio slider to match your savings.
  2. 2
    Adjust the withdrawal rate
    Slide between 3% (safest, ~99% historical success), 4% (Trinity Study default, ~95%), and 5% (riskiest, ~70%). Each step reshapes your safe withdrawal.
  3. 3
    Toggle to forward mode if you want the inverse
    Switch to “I know my spending → my number” to invert the math: enter annual expenses and see the portfolio you need saved.

Your numbers

Mode
Portfolio amount i$1,000,000
$100k$5M
Withdrawal rate (SWR) i4.0%
3% (33×)4% (25×)5% (20×)

The 4% rule comes from the Trinity Study (Cooley et al., 1998): a 30-year retirement starting with a 4% initial withdrawal rate, adjusted annually for inflation, succeeded ~95% of the time across historical market periods. Lower SWRs (3% / 3.5%) approach 100% historical success.

Your sustainable spending
$40,000
That's $3,333/mo — sustainable in ~95% of historical 30-year periods.

A $1,000,000 portfolio at 4.0% SWR sustained this spending in ~95% of historical 30-year periods (Trinity Study). It's a rule of thumb, not a guarantee. Invert the math: your FIRE number for this spending level is $1,000,000 (25.0× spending).

Withdrawal rate comparison For a $1M portfolio
SWRAnnual withdrawalMonthly withdrawal
3.5%$35,000$2,917/mo
4%$40,000$3,333/mo
4.5%$45,000$3,750/mo

The 4% rule comes from the Trinity Study (Cooley et al., 1998): a 30-year retirement starting with a 4% initial withdrawal rate, adjusted annually for inflation, succeeded ~95% of the time across historical market periods. Lower SWRs (3% / 3.5%) approach 100% historical success.

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FAQ

The math, explained.

What is the 4% rule? +
A guideline from the Trinity Study: in year one of retirement, withdraw 4% of your portfolio. Each following year, withdraw that same dollar amount adjusted for inflation. Historically, this lasted 30+ years across nearly every rolling period since 1926.
Is 4% still safe after recent inflation? +
The 4% rate was calibrated to worst-case historical scenarios, including the high-inflation 1970s. Some modern researchers argue for 3.5% given today’s valuations and longer retirements — that’s why we let you slide down to 3%.
Why does the success rate drop at 5%? +
Higher withdrawals compound with sequence-of-returns risk: if a market crash hits early in retirement, you’re selling more shares at low prices. At 5%, historical 30-year success falls to ~70%.
Should I withdraw from stocks, bonds, or both? +
The Trinity Study tested mixed stock/bond portfolios (typically 50–75% stocks). A common FIRE allocation is 60–80% stocks for growth, with bonds as a buffer. Asset allocation matters as much as the rate.
What’s the difference between 3%, 3.5%, and 4%? +
A 1% gap in withdrawal rate translates to a much bigger gap in portfolio target: 3% needs 33× expenses, 3.5% needs ~28.6×, and 4% needs 25×. On $40k of spending, that’s $1.32M, $1.14M, or $1.0M. Each step up the SWR is a meaningfully smaller portfolio but a meaningfully lower historical success rate.
Is this financial advice? +
No. It’s an educational tool based on transparent assumptions. Your real returns will vary. For decisions specific to your situation, speak with a licensed financial advisor.

How this number is calculated

Annual withdrawal = Portfolio × SWR. Monthly = Annual ÷ 12. The 30-year success rates come from the Trinity Study’s historical backtests of rolling 30-year windows from 1926–1995.

This page is a preset route of the FIRE Number calculator engine (PRD §5.0): the engine opens in reverse mode — “I have savings → what can I spend?” — with a $1,000,000 portfolio and a 4% SWR pre-loaded. The same The Plan slider and SWR comparison table render underneath. Read the 4% rule explained or the Trinity Study breakdown. Source: Cooley, Hubbard, and Walz, “Portfolio Success Rates” (1998, updated).

4% rule explained, Trinity Study breakdown.

This tool is for educational purposes only and is not financial advice. Estimates are based on the assumptions shown (e.g., 7% nominal returns, 3% inflation, 4% withdrawal rate). Actual investment returns vary. Consider speaking with a licensed financial advisor.