Enter the total savings ($) into the Safe Withdrawal Rate Calculator. The calculator will evaluate the safe withdrawal amount per year. 

Safe Withdrawal Rate Formula

The following two example problems outline the steps and information needed to calculate the Safe Withdrawal Rate.

SWR = S * .04

  • Where SWR is the Safe Withdrawal Rate ($/year)
  • S is the total savings ($) 

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

Test your knowledge using the equation and check your answer with the calculator..

SWR = S * .04 = ?