Unlock Your Financial Future

Important Update

How "Spending → Income" Works

Start by picking your target monthly spending.

Let's say your budget requires (the currently set value) per month after tax spending in today's dollars.

We turn that into an annual amount.

Annual Net Income = × 12 =

We "gross up" for taxes.

To end up with in your pocket, we divide by (1 − your effective tax rate of %):

Required Withdrawal (pre-tax) =  ÷ (1 − %)
                             = 

Finally, we need to inflation-adjust each year until retirement.

That pre-tax amount today becomes at age , based on your inflation assumption.

How "Income → Spending" Works

You pick your target gross withdrawal.

Let's say you want withdraw per month (/year) before taxes from your portfolio.

We inflation-adjust to retirement.

That pre-tax amount today becomes at age .

We "net down" for taxes.

We run that through the Tax Estimator, which subtracts your estimated taxes () based on your filing status and deductions:

Net Income =  −  = 

We turn that into monthly spending.

Your available after-tax monthly spending is:

Monthly Spending =  ÷ 12 = 

How the "4% Rule" is Calculated

We start with your portfolio's estimated value at retirement.

Based on your inputs (current investments, contributions, and expected returns), we project your portfolio will be worth at age .

Then, we apply your chosen withdrawal rate.

Your first-year withdrawal is that value multiplied by your selected rate of %:

 × % = 

"Equivalent in Today's Dollars" is for perspective.

This number shows what your first-year withdrawal would be if you applied the same withdrawal rate to your current portfolio of . It helps you understand the withdrawal amount in today's terms, before any future growth or inflation.

 × % = 

Want to see exactly how we arrive at your tax rates and deductions? Just hop over to the Tax Estimator tab for a full breakdown.

Note: This simplified estimator does not account for state taxes, credits, or advanced deductions. It uses U.S.2025 estimated brackets and standard deductions, including an additional amount for age 65+. Actual results may vary.

⚙️Calculator Settings

🚀 Spread the Word About FourPercentRule.com

By sharing your plan with others, you're helping us reach more people. Every share helps us grow our community and helps fund the developing better features for everyone!

📢 Help Others Plan for Success

When you share your retirement plan on social media, forums, or with friends, you're providing a real-world example that can inspire and guide others who are struggling with their financial future.

💡 Spark Important Conversations

Your shared plan becomes a conversation starter about retirement planning, investment strategies, and financial independence.

🎯 How to Share Effectively

Please make sure to respect the rules of the groups you are sharing on. We certainly don't want you to spam this service. But if see someone looking for recommendations for retirement tools, and you enjoy the FourPercentRule service, we'd love to see your endorsement!

• Reddit communities: r/financialindependence, r/personalfinance, r/investing
• Facebook groups: Financial planning and FIRE communities
• Twitter/X: Use hashtags like #RetirementPlanning #FIRE #FinancialIndependence
• LinkedIn: Professional networks discussing career and financial planning

Remember: You can find shareable links for your plans in the Saved Plans tab. Each shared plan helps someone else take their first step toward financial security!