Simulate portfolio longevity using the safe withdrawal rate methodology (The 4% Rule).
Withdrawals increase with inflation
The 4% Rule is a widely used guideline for financial freedom that helps you determine how much you can safely withdraw from your investments every year without running out of money. This calculator applies the 4% rule to real-world Systematic Withdrawal Plans (SWPs), helping you live off your investments while keeping up with inflation.
Popularized by the Trinity Study, the 4% rule answers some of the most searched financial questions: How much money is enough? Can I live off my investments? What is the best SWP for long-term financial freedom? This tool goes beyond simple math by modeling withdrawals, inflation, and portfolio sustainability over decades.
This advanced 4% rule calculator simulates how a Systematic Withdrawal Plan (SWP) performs over time. It helps you understand whether your investment portfolio can support long-term withdrawals while preserving purchasing power.
Annual Withdrawal = Portfolio Value × 4%. In SWP terms, this amount is withdrawn periodically (monthly or yearly) and adjusted for inflation over time.
Example: If you have a ₹1 crore portfolio, the 4% rule suggests withdrawing ₹4 lakh in the first year. Each following year, the withdrawal increases with inflation. This calculator tests whether such withdrawals can last 30–50+ years based on returns, volatility, and inflation.
Unlike basic 4% calculators, this tool gives you full control over withdrawal rates, inflation assumptions, portfolio returns, and SWP frequency. You can optimize your SWP to balance lifestyle needs with long-term sustainability and reduce the risk of running out of money.
The 4% rule is not a guarantee. It is based on historical data from the Trinity Study and assumes disciplined withdrawals, diversified portfolios, and long-term investing. Market conditions, inflation spikes, and behavioral mistakes can affect outcomes. This is why advanced simulations and flexible SWP planning are critical.
The 4% rule is a key guideline for living off investments and reaching financial freedom. It recommends withdrawing 4% of your initial portfolio in the first retirement year (e.g., $40,000 from $1M), then adjusting annually for inflation, aiming for the funds to last at least 30 years with high success probability. This rule originated from the Trinity Study (1998), which examined historical U.S. stock and bond data. It showed a 4% initial withdrawal rate succeeded in nearly all 30-year periods for balanced portfolios (50–75% stocks), making it a popular benchmark for systematic withdrawal plans (SWP)—regular, inflation-adjusted draws from investments. In 2026, updates (e.g., Morningstar research) suggest a base-case safe starting rate of 3.9% for consistent 30-year spending at 90% success, due to current valuations and yields. Flexible strategies can allow higher rates. Test your scenario with our simulator How Long Will Your Nest Egg Actually Last? Simulator.
Most SWP calculators assume fixed returns. This tool models long-term sustainability, inflation impact, and aligns withdrawals with the 4% rule and Trinity Study research.
Yes, many investors do. This calculator helps you test whether your portfolio size and withdrawal rate can realistically support your lifestyle.
The concept applies globally, but inflation, returns, and asset allocation matter. This tool allows customization so the 4% rule can be adapted to Indian or global contexts.
A common estimate is 25× your annual expenses, based on the 4% rule. This calculator refines that number using real-world assumptions.
Yes, it is possible at any of these ages, but the younger you retire, the harder it gets. You will need a much higher savings rate (50–75%+) and a larger corpus (25x to 40x your annual expenses) because your money must last much longer. Key Point: The earlier the retirement age, the bigger the challenge.