Spending down on purpose
The 4% rule aims to make money last 30 years in almost any historical market, which means in most cases it leaves a large balance behind. If you would rather spend your savings over a fixed period, this calculator finds the level, inflation-adjusted withdrawal that runs the balance down to your chosen ending amount exactly when the period ends.
With $800,000, 30 years and a 3% real return, that is about $39,600 a year, close to the 4% rule. Over 40 years it drops to about $33,600 a year, and over 20 years it rises to about $52,200.
Use it with care
A fixed real return hides the risk of bad years early in retirement. Treat the result as a ceiling for a smooth world and plan a little below it, or adopt a flexible rule such as cutting withdrawals by 10% after a year when the portfolio falls.
Example: spending down $800,000
With $800,000, a 30-year horizon and a 3% real return, the calculator finds a level withdrawal of about $40,800 a year, rising with inflation, that would bring the balance to zero at the end. That is noticeably more than the $32,000 the 4% rule gives, because the 4% rule is designed to survive the worst historical markets and usually leaves money behind.
The trade-off is risk. A spend-down plan assumes steady returns, so a weak first decade could leave you short later. Many people use the higher figure as a ceiling, start a little below it, and review once a year. Our 4% rule backtest shows how different withdrawal rates fared in real market history.
Common questions
How much can I withdraw from $800,000 for 30 years?
About $40,800 a year, raised with inflation, if the money earns a steady 3% after inflation and you plan to spend it all. The more cautious 4% rule gives $32,000.
What is a safe withdrawal rate?
Around 4% for 30 years based on historical US data, lower for longer periods.
Should I plan to spend all my money?
Some people do, often keeping a reserve or annuity for very old age. Others prefer to leave an inheritance.
What real return should I use in retirement?
2% to 4% after inflation is a common conservative range for a balanced portfolio.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.