• S is the total savings ($) ## How to Calculate Safe Withdrawal Rate? The following example problems outline how to calculate Safe Withdrawal Rate. Example Problem #1: 1. First, determine the total savings ($).
• The total savings ($) is given as: 1,000,000. 2. Finally, calculate the Safe Withdrawal Rate using the equation above: SWR = S * .04 The values provided above are inserted into the equation below and computed. SWR = 1,000,000 * .04 = 40,000 ($/year)

Example Problem #2:

For this problem, the variables required are provided below:

total savings (\$) = 2,000,000