Retirement Income Calculator
Your retirement portfolio can generate monthly income based on your withdrawal rate. The 4% rule (40× rule) allows $40,000/year from a $1M portfolio. Add Social Security to see your complete retirement income picture.
Enter your portfolio size, withdrawal rate, and Social Security estimate to calculate monthly income, compare withdrawal rates, and see portfolio longevity at different spending levels.
| Year | Portfolio Value | Annual Withdrawal | Monthly Income (total) |
|---|
How Retirement Income Works
Retirement income from a portfolio comes from withdrawals. The sustainable withdrawal rate determines how much you can take each year without running the portfolio to zero. The 4% rule — withdraw 4% of your initial balance in year 1, then adjust for inflation each subsequent year — has survived nearly every historical 30-year retirement period since 1926.
The Portfolio Required at Different Income Levels
| Monthly Income | At 3% Rate | At 4% Rate | At 5% Rate |
|---|---|---|---|
| $2,000/mo ($24K/yr) | $800,000 | $600,000 | $480,000 |
| $3,500/mo ($42K/yr) | $1,400,000 | $1,050,000 | $840,000 |
| $5,000/mo ($60K/yr) | $2,000,000 | $1,500,000 | $1,200,000 |
| $8,000/mo ($96K/yr) | $3,200,000 | $2,400,000 | $1,920,000 |
How Social Security Changes Everything
Social Security is effectively a pension that offsets your portfolio withdrawal needs dollar-for-dollar. A $2,000/month Social Security benefit reduces your required annual portfolio withdrawal by $24,000. At the 4% rule, that reduces your required portfolio by $600,000. This is why Social Security claiming strategy — whether to claim at 62, 67, or 70 — dramatically affects how much you need to save.
Delaying Social Security from 62 to 70 increases the monthly benefit by approximately 75%–80%. On a $1,500/month benefit at 62, that becomes roughly $2,600–$2,700/month at 70. The difference of $1,100–$1,200/month is equivalent to another $330,000–$360,000 in portfolio savings (at the 4% rule).
To work backward from income to portfolio target, use the FIRE Number Calculator. To see what a Roth conversion would do to your taxable income in retirement (affecting withdrawal efficiency), try the Roth Conversion Calculator. For more on how to structure your retirement income, read our guide on how much monthly income your savings can generate.
Frequently Asked Questions
How much income can I get from a $1 million portfolio?
At the 4% rule: $40,000/year ($3,333/month). At 3.5%: $35,000/year ($2,917/month). At 5%: $50,000/year ($4,167/month). Adding Social Security income on top of these amounts gives your total retirement income. A $1,800/month Social Security benefit plus $3,333/month from the portfolio = $5,133/month total.
How long will my retirement savings last?
If your withdrawal rate is below your portfolio's long-term return minus inflation, the portfolio grows indefinitely. If withdrawing faster than the net return, longevity depends on the gap. A $500,000 portfolio at 6% return withdrawing 4% ($20,000/year) grows permanently. Withdrawing 8% ($40,000/year) runs out in about 20–22 years.
What is the 4% rule?
Withdraw 4% of the initial portfolio in year one, then adjust for inflation each year. Based on the 1998 Trinity Study, this rate historically survived 30-year retirements in nearly all scenarios back to 1926. Many planners now recommend 3.5% for longer horizons (40+ years) or as a buffer against poor sequence-of-returns.
How does Social Security affect retirement income needs?
Dollar-for-dollar: every $1,000/month in Social Security income reduces your required portfolio withdrawal by $12,000/year, which reduces the required portfolio by $300,000 at the 4% rule. Delaying Social Security from 62 to 70 can add $1,000–$1,500/month to the benefit — equivalent to $300,000–$450,000 in additional savings.
How much do I need to retire on $5,000 a month?
With no other income: $1,500,000 at the 4% rule ($5,000 × 12 ÷ 0.04). With $2,000/month Social Security, your portfolio only needs to generate $3,000/month, requiring $900,000. With $2,500/month Social Security, $750,000 is sufficient. Social Security is by far the biggest variable in retirement income planning.
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