Retirement Income Calculator
Convert your retirement nest egg into estimated monthly and annual income using safe withdrawal rates. See if you're on track.
4% is the classic safe rate.
Social Security, pensions, rental income.
How it works
- 1Enter your projected retirement balance
What you expect to have invested when you retire.
- 2Pick a withdrawal rate
4% is the classic benchmark. 3.5% is more conservative; 5% is aggressive.
- 3Add other income
Social Security, pensions, rental income — anything outside your portfolio.
The 4% rule, popularized by the 1998 Trinity Study, found that retirees withdrawing 4% of their initial portfolio each year (adjusted upward for inflation) had a 95%+ chance of their money lasting 30 years across all historical market periods.
Translated into dollars: $1,000,000 invested supports about $40,000/year ($3,333/month) of inflation-adjusted income for 30 years. A $500,000 portfolio supports $20,000/year ($1,667/month).
Today's research suggests slightly lower rates (3.5–4%) for longer retirements or more conservative portfolios, and slightly higher rates (4.5–5%) for retirees with flexibility to cut spending in down years or shorter retirement horizons.
Use this calculator to test scenarios: How much income does my current 401(k) projection support? What if I want $5,000/month — what nest egg do I need? Combined with Social Security, am I on track? Adjusting the withdrawal rate reveals how sensitive retirement planning is to assumptions.
Example scenarios
$20,000/year ($1,667/month). Combined with $2,000 Social Security = $3,667/month.
$40,000/year ($3,333/month). Comfortable middle-class income with typical Social Security.
$52,500/year ($4,375/month). Very conservative — likely lasts indefinitely.
Common questions
What is a safe withdrawal rate?
The classic 4% rule says you can withdraw 4% of your starting nest egg per year (adjusted for inflation) for ~30 years with very high probability. Modern research suggests 3.5–4% is still reasonable for most retirees.
Does this account for Social Security?
No — this calculator estimates income from your portfolio alone. Add expected Social Security separately. The average US benefit is ~$22,000/year; check your statement at ssa.gov.
What if I want my nest egg to last forever?
A 'perpetual' withdrawal rate is closer to 3% — meaning a $1M portfolio supports ~$30,000/year indefinitely, assuming inflation-adjusted withdrawals and balanced investments.
How much do I really need to retire?
Multiply your annual expenses by 25 (4% rule) or 33 (3% rule). If you spend $50,000/year, you need $1.25M–$1.65M in invested assets, not counting Social Security or pensions.