Compare withdrawal-rate scenarios
See how different yearly spending rates change the investment pot you would need to support your lifestyle.
Withdrawal-rate comparison
Each row applies a fixed rate to the same spending and portfolio. Rates are assumptions, not guarantees.
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Rate
The assumed percentage withdrawn from the portfolio in the first year. | Target | Annual income | Monthly income | Gap / surplus |
|---|---|---|---|---|
| 3.0% | 1,200,000.00 | 3,000.00 | 250.00 | Gap 1,100,000.00 |
| 3.5% | 1,028,571.43 | 3,500.00 | 291.67 | Gap 928,571.43 |
| 4.0% | 900,000.00 | 4,000.00 | 333.33 | Gap 800,000.00 |
| 4.5% | 800,000.00 | 4,500.00 | 375.00 | Gap 700,000.00 |
| 5.0% | 720,000.00 | 5,000.00 | 416.67 | Gap 620,000.00 |
These rates are assumptions, not guaranteed safe outcomes.
* Not financial advice. Just for fun and information. Read the full Disclaimer, also linked in the footer, for more.
Compared 5 withdrawal-rate scenarios.
What a withdrawal rate means
A withdrawal rate is the share of an investment pot used as a starting point for a year’s spending. Compare five rates for the same spending goal to see the tradeoff: taking a smaller share needs a larger pot, while taking a larger share needs a smaller pot and leaves less room for difficult years.
The table compares 3%, 3.5%, 4%, 4.5% and 5%. It also shows the first-year spending amount each rate would correspond to for the investments you already have. These are scenarios to compare, not a recommendation to choose a particular rate.
Reading your result
For example, a pot of 100,000 corresponds to 4,000 for the first year at 4%, or 3,000 at 3%. For spending of 36,000 a year, the corresponding targets are 900,000 and 1,200,000. A gap shows the extra amount needed to reach each target; a surplus shows how far your current pot is above it.
What this comparison cannot tell you
No rate guarantees that your money will last or that your remaining investments will keep growing. Retirement length, market falls, rising prices, taxes and changes in spending all matter. This table does not simulate future withdrawals or show how much would remain after a particular number of years. Use FIRE number to enter your own rate.
The maths behind the comparison
Monthly spending × 12 gives annual spending. For each rate, target = annual spending ÷ rate expressed as a decimal. First-year spending amount = existing portfolio × rate. See the methodology for shared calculation rules.
